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MUMBAI:
The film and television industry has spent $60 billion in
New York City over the past decade and television production
is now at an all-time high, city Mayor Michael R. Bloomberg
said while announcing the results of an economic study conducted
by the Boston Consulting Group that details the growth and
economic impact of New York City’s media and entertainment
industries.
According
to the BCG report, over the last ten years filmed entertainment
in New York City has seen remarkable growth and is currently
the strongest in its history, generating direct spending of
$7.1 billion in 2011, an increase of over $2 billion dollars
annually since 2002. Film and television production now employs
130,000 people, an increase of 30,000 jobs since 2004.
New
York City has also maintained leadership in the broader media
sector which supports over 275,000 direct full-time equivalent
jobs and generates more than $80 billion in direct revenues
annually, the report said.
From
2002 to 2011, while nationwide media employment shrunk and
the industry rapidly evolved, New York was able to drive significant
job and revenue growth, continuing to attract new companies
in all sectors and increased its importance as the major media
hub and growing its share of nationwide media employment from
9.4 per cent to 10.8 per cent. Since 2002, New York has created
40,000 media sector jobs while the U.S. has shed 40,000 jobs.
“This
report confirms what I’ve been seeing on sets and sound
stages around the city – the film and television industry
in New York City has never been bigger,” said Mayor Bloomberg.
“In fact, our entire media landscape – from digital
media to advertising – has shown strong growth throughout
the economic downturn. The strength of these industries is
a key reason we’ve weathered the recession better than
the rest of the country – and it is confirmation that
our strategy to diversify our economy is working.”
Additionally,
the Partnership for New York City’s investment fund has
established a $2 million revolving loan facility to assist
special effects and post-production companies that are expanding
their operations in New York City. The first loan will be
made to Look Effects, whose New York offices are located in
Brooklyn, for $200,000.
BCG’s
report aims to analyse the development and growth of the City’s
media by examining different subsectors and identifying the
main trends that have shaped and will continue to shape local
media and digital media sectors.
Filmed
Entertainment
According
to the report, despite a nationwide industry decline, 30,000
jobs were created in New York City’s filmed entertainment
industry since 2004, and the sector’s spend has grown
by 70 per cent since 2002. The industry today accounts for
$7.1 billion in spend and employs 130,000 people.
This
growth was been accompanied by private infrastructure investment,
expanding studio and post-production capacity. Television
and film studio space has nearly doubled, and the post-production
industry has also grown significantly. TV productions grew
by nearly 82 per cent, driving most of the sector growth with
an increase in dramas, reality and talk shows. TV production
also supports an increase of 14,000 jobs.
Digital
Media
Since
2002, the local digital media sector has surged in the City
to now account for revenue of over $8 billion and full-time
employment of 25,000 people. The City’s share of national
media and entertainment venture capital investment has gone
from 10 percent in 2002 to over 26 percent in 2011, funneling
$500 million to local media start-ups in 2011 and making Silicon
Alley the second largest market for digital media investments
nationally, after the Silicon Valley.
Hundreds
of local digital start-ups have been founded in the last few
years with a significant proportion in media and entertainment.
In recent years, large companies have opened and increased
their New York presence. Google opened its engineering office
in 2007, Twitter opened an office in 2011, and Facebook announced
the opening of its first engineering office outside the West
Coast in 2012. New York City’s unique combination of
financial, advertising, creative, technical and cultural resources
positions the City as major center for digital media.
Advertising
and Publishing
New
York City’s advertising industry has shown strong growth
both in terms of jobs and revenues over the past ten years.
Local advertising jobs increased 18 per cent since 2002, while
nationwide jobs have decreased significantly. Many traditional
agencies acquired digital capabilities and are now leaders
in producing multi-media campaigns.
Publishing,
faced with increased competition from Internet advertising,
social media and proliferation of content distribution platforms,
has experienced a nationwide decline with lower advertising
and newsstand revenues. However, in New York City, publishing
companies have shed jobs at a lower rate than nationwide.
Many publishers have been able to offset the decrease in newsstand
revenues with growth in digital publications for tablet devices
and e-readers. Overall, publishing continues to be an important
source of jobs and revenues to the City.
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