Georgia's Film Industry: A Look at the Possible Strike's Consequences

As Georgia is poised for a potential strike from its major film production companies, this article explores what impact such labor action would have on Georgia's film industry. Georgia has long been an attractive location for movie and television production companies due to our tax incentives and variety of locations. The Strike’s Impact on Production Georgia film and television production has long been one of the driving forces of economic success. Film and television production industries have brought substantial investment to local communities while creating hundreds of jobs and benefiting small businesses in Georgia as a whole. Georgia has offered an attractive tax incentive program since 2005 to lure film and TV productions, providing economic stimulus while persuading producers to locate here. Production companies can claim 20% of their Georgia expenditure as a tax credit and may receive an extra 10% incentive if their final product features a "Made in Georgia" logo. With such strong support for film and television production in Georgia, filming of film and television production continues to flourish in Georgia. 391 productions filmed during fiscal year 2021 yielded an economic impact of $4 billion! Georgia's popularity as a location for high-profile projects stems in part from its wide variety of cost-effective locations for various scenes, spanning cities to rural settings - making Georgia an ideal location for films and shows alike. Georgia provides more than just tax incentives to encourage film and TV production within its borders. For instance, its Georgia Film Office provides multiple resources that enable local businesses and talent to present themselves to industry decision-makers for consideration. Additionally, the Office of Film and Entertainment works closely with local communities to assist them with preparations for film or TV productions. Their staff streamline the permitting process while offering training and educational opportunities geared at protecting local residents and businesses' rights and interests. Georgia's film industry has found great success due to the state's generous film tax incentive, which has significantly benefited Georgia's economy while inspiring many other states to offer similar incentives. Once again, all this means a strike could negatively impact Georgia's film and television production industry, but any possible negative repercussions should only last short-term; Georgia will still thrive over time. The Strike’s Impact on the Economy Georgia's film industry is an integral component of Georgia's economy, creating jobs, income taxes and revenue for state and local government. Production companies rely on Georgia's diverse locations as cost-effective locations for filming their projects. Georgia offers more than just major film productions; they also provide support and venues for smaller independent projects. Atlanta Film Festival and Out on Film provide venues where these works can be showcased worldwide. Georgia's film industry is flourishing, and is expected to keep expanding into the future. But any potential for strikes could adversely impact its growth. Georgia has competed successfully against other states and nations for film and television production projects since the late 1990s. To help bring more productions into Georgia, Georgia passed legislation providing tax credits for projects shot within its borders. Georgia tax credits have been an invaluable tool in luring large-scale film projects to Georgia, while simultaneously increasing film tax revenues and creating employment opportunities for Georgians. Tax credits in Georgia have proven incredibly popular with Hollywood production teams and other countries have started offering similar incentives in hopes of drawing filming to their territory. Unfortunately, several celebrities have protested the state tax law and called for an industry boycott in an effort to keep production from coming here. While the film industry is an essential economic engine in Georgia, it does present its share of challenges. For instance, in 2016 COVID-19 spread caused film production to stop for several months due to disease outbreak. Production activity quickly rebounded from its hiatus and set a record direct spending record in Georgia during fiscal year 2022, when production companies spent an impressive $4.4 billion in Georgia alone. According to the governor's office, this marks an encouraging sign for growth within the film industry in Alabama. The film office helps build this sector by marketing Alabama as a film location; booking locations; and coordinating production needs with agencies, local governments and citizens. State training programs like Georgia Film Academy have also helped Georgia expand its film workforce. These training courses equip film crews for various projects while giving companies peace of mind that their project will have access to skilled workers when coming to Georgia for filming. The Strike’s Impact on Jobs Georgia's film industry is an integral component of Georgia's economy, providing jobs to thousands of Georgians -- not all actors but many involved with collaborating to produce films. Georgia also hosts some renowned film schools such as SCAD and Georgia State University that specialize in this sector. Georgia's film industry has experienced rapid expansion over the past 15 years due to generous tax credits. In 2021 alone, 366 productions filmed there and brought $4 billion directly into its economy. Georgia is home to major motion picture production as well as smaller independent projects; one such event being the Atlanta Film Festival which has been an anchor in Atlanta's culture since 1987. One of the most successful strategies used to lure film and TV productions to Georgia has been Governor Sonny Perdue's 2008 tax incentive program which provided a generous tax credit reduction for businesses or individuals investing in movie or TV production in Georgia. This incentive remains in place today and has proven so successful that other states have followed its example and implemented film and TV tax incentives of their own. As of 2018, 31 states offer film and TV tax incentives designed to attract productions. As the film industry has expanded and matured, it's essential to acknowledge all of the different jobs it creates. Actors and script writers alike play an integral role in depicting life on screen. Not every viewer realizes it, but your favorite television show or movie was made possible thanks to an army of writers, producers, and other professionals who put in long hours creating the story you see onscreen. They play a critical role in society and deserve equal treatment with regards to respect and fair pay as any other professions. But if writers fail to reach an agreement on a new contract by December, they could strike immediately, having serious repercussions for production and employment in Georgia. Should negotiations fail and writers remain on strike instead of returning back to work after negotiations conclude, we could witness production ceasing altogether - potentially costing Georgia millions in economic output and potential jobs lost. The Strike’s Impact on the Local Economy If a deal cannot be reached, Georgia's film industry could face severe repercussions from a strike, according to Atlanta Journal-Constitution reports. Many TV shows and movies could come to an end abruptly as production stops abruptly. State's generous tax credits, talent pool and range of shooting locations attracted over 350 film and TV productions during its most recent fiscal year - pumping an estimated $4 billion into its economy. But with union threats of going on strike should their contracts not be fulfilled, studios may seek other locations for filming purposes. Over the past five years, Oklahoma has witnessed more film productions than it ever did over previous decades combined. These projects include major blockbusters such as Marvel's Avengers: Endgame and Hunger Games series finale. Smaller projects have also contributed to Georgia's growing film industry; for instance, Cook County in South Georgia recently hosted an indie movie with only a $10,000 budget. These smaller projects don't directly contribute to Georgia's local economy as much as larger productions such as those found in metro Atlanta and Savannah; however, they still help spread awareness of Georgia as an ideal location for filmmaking across communities throughout Georgia. Georgia is fast becoming the "Hollywood of the South." Due to tax credit incentives and more permanent studios opening their doors for film production in Georgia, producers looking for filming locations within America find it an appealing destination. The Georgia Entertainment Industry Investment Act passed by the General Assembly and signed by Governor Sonny Perdue provides film and television production companies that spend money in Georgia with a 10% tax credit, plus another 10% credit if they include "Made in Georgia" logo on end credits as an added incentive. Since the passage of Georgia Entertainment Industry Investment Act in 2016, Georgia has hosted over 550 major film and television productions generating $54 billion in direct spending - creating jobs across the state as well as drawing businesses and tourists into its territory.