Office of the State Comptroller

The film and television production industry playsan important role in the economy of New York State, but states across the nation and certainCanadian provinces are aggressively competingfor film and television jobs by offering taxincentives. These jobs pay well and the industryhas favorable impacts on other sectors of theeconomy, such as tourism. In 2004, New York enacted its own industry tax incentive.Of all 50 states, New York has the second-largestshare of this industry (California has the largest).New York’s association with the industry goesback to the early days of cinema before thedevelopment of Hollywood, when New York Citywas the country’s premier filmmaking center.Tracking the number of jobs in the film andtelevision industry is difficult because of industrypractices and data limitations. The NorthAmerican Industry Classification System (NAICS)has established two job codes that are dedicated tomotion picture and video production, andpostproduction activities, but industry-related jobsare also reflected in other NAICS codes that coverbroader job classifications.According to the U.S. Bureau of Labor Statistics(BLS), the number of motion picture and videoproduction jobs and postproduction jobs in NewYork rose by 14.2 percent between 2004 and 2008to 36,000 jobs (see Figure 1).

About two-thirds of these jobs were located in New York City. NewYork State’s share of U.S. employment in theindustry rose from 14.8 percent in 2004 to16 percent in 2008, reversing an earlier trend.The industry also hires personnel through payrollservice companies and hires independent artists,writers, and performers, who are not reflected inthe aforementioned NAICS classifications.Much—but not all—of this hiring is related to thefilm and television industry. According to theBLS, the number of jobs in New York State inthese categories grew by 20.9 percent between2004 and 2008 to 27,000 jobs (see Figure 1).

The Film and Television ProductionIndustry in New York State

Thomas P. DiNapoli

Kenneth B. Bleiwas

New York State Comptroller Deputy ComptrollerReport 22-2010 March2010Highlights

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Of all 50 states, New York has the second-largest film and television production industry(California has the largest).

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In 2008, 36,000 people in New York wereemployed directly by the film and televisionproduction industry (e.g., actors, editors,camera operators, studio mechanics, andbuilding trades). In addition, the industry hiresworkers through payroll service companies andhires independent artists, writers, andperformers.

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In 2008, the industry paid more than $3.3 billionin direct wages in New York, 33.8 percent morethan wages paid in 2004, and up to another$1.7 billion through payroll service companiesand to independent artists.

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The industry’s economic impact is multipliedthrough its support of jobs in other areas suchas catering, equipment rentals, and tourism.

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Kaufman Astoria Studios (KAS) is currentlyundergoing a $22 million expansion that willadd a seventh soundstage. KAS also plans todevelop an outdoor backlot set.

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Silvercup Studios has announced a $1 billionexpansion with new soundstages and supportfacilities, as well as residential and commercialspace.

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Steiner Studios is renovating to createadditional space for production and support,and is developing an outdoor studio lot.

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Broadway Stages, which operates 15soundstages at locations in Brooklyn and LongIsland City, also has plans to expand.

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The Governor’s office reports that the NewYork film production tax credit has generated$6.98 billion in economic activity since 2004.

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Ernst & Young estimates that New York’s filmindustry tax credits have had a positive impacton State and City tax revenues.

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The number of projects that applied for NewYork’s film tax credit tripled in the 12 monthsafter the credit was expanded in 2008.