Filmed Entertainment and Local Economic Development: Texas as a Case Study

Abstract

Filmed entertainment, which includes theater box office, home video, and made-for-television movies, is a large and rapidly growing industry, with sales projected to reach $67 billion by 2002. Strong growth is expected to continue into the next decade, spurred in part by expanding interactions with the computer, electronics, and software industries. Although the film and video industry is concentrated in California and New York, other states—most notably, Texas—are attempting to lure dollars and jobs from Hollywood through preferential tax treatment and other incentives. This study finds that states and localities would be best served by focusing on the development of indigenous creative and technical talent as well as building linkages with existing technology-based industries. The authors caution that opportunities outside the major production centers will be limited and that a careful assessment should be made before allocating scarce fiscal resources in pursuit of the filmmaking business.