Assignment 1: The film industry and city competition
This assignment is part of Learning Objective 3: Describe the role of public policy, urban planning and real estate development in shaping city life
The movie industry is part of the identity of Los Angeles. Hollywood was the epicenter of film industry development, from the early 20th century silent films to the studio-based system of mid-century to the late century blockbusters to today’s streaming media. The Hollywood sign is a Los Angeles tourist attraction, along with the stars on Hollywood Blvd sidewalks and tours of “homes of the stars” in the hillside enclaves above the city. The film industry has led to many spinoff activities, including entertainment parks (Universal Studios), media technology development, and today’s media influencers (where do the Kardashians live?). Given its visibility and apparent economic value, the film industry has become an economic development target for cities around the world.
Cities compete for economic development in many ways, from industrial policies that favor certain industries, particularly those that are perceived to bring wealth and status, to bidding for major sports teams or even the Olympic Games. One industry in particular demand is the film industry – movies, TV and other entertainment media.
The purpose of this assignment is to consider the film industry as a strategy for city competition and economic development. Nearly every state in the US offers some form of subsidy to attract the film industry. Anxious to retain its dominance, California and Los Angeles have their own set of incentives to retain the film industry. New Mexico and Louisiana made the film industry the centerpiece of state economic development plans, offering an extensive list of incentives to build up an industry. How successful are film industry subsidies? Do they generate jobs or long term economic growth? Would Los Angeles have lost much of the industry without providing subsidies? Are they a good investment for cities? Who receives the benefits of these subsidies, and who pays the costs?
Assignment instructions
Read the following reports:
Tannenwald, R. (2010) State film subsidies: Not much back for too many bucks, Center on Budget and Policy Priorities, Washington, DC. Available at https://www.cbpp.org/research/state-film-subsidies-not-much-bang-for-too-many-bucks#:~:text=Like%20a%20Hollywood%20fantasy%2C%20claims,are%20more%20fiction%20than%20fact.
Sedgwick, S. T. Lafemere, A. Specht, and M. Dunsker (2022) California film and television tax credit program 2.0: An economic impact study. Los Angeles Economic Development Corporation. Available at https://laedc.org/wp-content/uploads/2022/03/LAEDC-Report_CA-Film-TV-Tax-Credit-Program-2.0_FINAL_2022.03.14.pdf. (Executive Summary most important)
Optional reading:
Thom, M. (2018) Lights, camera, but no action? Tax and economic development lessons from state motion picture incentive programs. American Review of Public Administration, 48(10, 33-51.
Using the information in these reports as well as other class materials, write an essay that responds to the following questions:
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What motivates cities to subsidize the film industry? What is the justification, and what do cities hope to accomplish? Who in the city stands to gain or lose from these investments?
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What types of subsidies are offered? Do cities sometimes get assistance from the state or federal government? If so, what is the justification?
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Why is the film industry so effective at obtaining subsidies?
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What is the result of these subsidies? Do they work? Are more jobs or long term growth generated?
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Why does Los Angeles continue to be dominant in the film industry?
Your essay should be about 4 pages (2000 words maximum), not including any figures or tables. Please use 1.5 space and 11 pt or larger font. Be sure to fully reference your essay.
Here are some steps you may wish to follow in doing this assignment:
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Read and take notes on the assigned articles.
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Review the questions to be covered in your essay, create an outline, and fill in the outline with points or observations from the readings.
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Write a first draft and check on your responses to each of the questions. Make any revisions and produce a final draft.
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Review your draft for writing, composition, spelling and references.
Submission and grading
Assignment 1 is due on 2/12/24. Submit via Blackboard by 11:59 PM. Do not wait until the last minute to submit your assignment. Give yourself time to recover from any problems you might encounter. Any assignment submitted after 11:59 will be marked late and incur the late penalties described in the syllabus.
This assignment will be graded on the basis of 100 points and will constitute 10% of your final grade. See the grading rubric on the following page.
Your essay must be written in a professional manner, using correct English grammar and spelling. You must use proper referencing, identifying the source of all information in the document. Points will be deducted for poor writing or improper referencing. Please note that USC and the Price School have a zero tolerance policy on plagiarism. If you have any questions on referencing, please ask!