Digitalization and Disruption: The Rise of Digital Media, 2018 Report
While local industry leaders in lm, television and music are still major contributors to the Los Angeles Basin economy, the region’s motion picture and sound recording pro le is evolving beyond traditional movie and television production. Digitization is disrupting almost every aspect of the media and entertainment industry . . . altering nancing and capitalization strategies, and greatly affecting business models, forecasts and industrywide trends . . . a concentrated and specialized digital media industry has emerged, swiftly scaling and changing the entertainment industry in the Los Angeles Basin by blending digitized content and new distribution technologies.
This fast-growing digital media and entertainment industry is characterized by a diverse array of technology and content rms
and includes sectors as assorted as digital advertising, web gaming, interactive media, augmented reality, virtual reality and animation. This blended digital media and entertainment ecosystem combines the creative product with data to drive adoption and respond to shifts in consumer behavior. . .
In the Los Angeles Basin, homegrown digital content rms are ascending as dominant players in digital media, such as Snap Inc., Fullscreen (which was acquired by AT&T and the Chernin Group), Makers Studios (which was acquired by the Walt Disney Company), and AwesomenessTV (which was bought by Dreamworks). Digital content rms are expanding into more traditional forms of entertainment, such as lm and television. Prominent Silicon Valley, Seattle and New York rms such as YouTube, Vice and Buzzfeed
are enlarging their footprint in the region as they shift from being content distributors to content creators. Not only are these new rms competing with traditional content creators, but, in some instances, they are supplanting them in market share and cultural prominence.
Tax Credits for Businesses That Create Jobs
The Governor’s Office of Business and Economic Development (GO-Biz) is now accepting another round of applications for its California Competes Tax Credit Program, which makes available $75 million in tax credits to businesses that want to expand and create jobs in the state.
California Competes is available to businesses of any size, but twenty-five percent of the credits are reserved for small businesses with gross receipts less than $2 million. In addition to the tax credits for job creation, the new program offers sales tax relief on the purchase of qualified research and development equipment and manufacturing equipment.
The California Competes program was created through AB 93 and its companion bill SB 90, both adopted in 2013. Since the inception of the program, GO-Biz has awarded two companies from the 49th Assembly District over $1.5 million in total tax credits for their commitment to invest $61.5 million in California while creating 370 new jobs. While the next round of funds available is $75 million in tax credits, GO-Biz is authorized to award a total over $230 million for fiscal year 2017-18.
The California Competes application period is now open and will accept applications until Monday, August 21, 2017.
What kind of jobs are there in Los Angeles, CA?
With its constantly shifting demographics, the economics of Los Angeles are hard to pin down. While creative professionals are everywhere, most people who work in the arts also participate in other sectors of the economy by keeping manufacturing, business and hospitality day jobs. Nonetheless, the Los Angeles’ “creative economy,” which includes museums, theaters, entertainment, fashion and design, accounts for more than 355,000 jobs, representing many of the Angelenos who consider themselves freelancers or entrepreneurs.
New salaried jobs, especially in the fiercely competitive entertainment industry and other creative professions, are hard to come by, leading to an unemployment rate that’s slightly higher than the national average. But entertainment isn’t the largest industry in the town where it’s simply known as “the industry.” Within the county of Los Angeles, industries with the biggest employment sectors include: trade, transportation and utilities; manufacturing; professional and business services; and the government. The ports of Los Angeles and Long Beach, which include passenger and cargo terminals, are the busiest in the U.S.
Business and Employer Resources
The 2017 Otis Report on the Creative Economy was released May 18th, 2017 by Otis College. The report creates a better understanding of the inextricable linkage between arts education and the thriving creative industries in Los Angeles and the entire state of California. Los Angeles has a unique competitive advantage because of the creative talent working throughout many sectors, providing the secret sauce that drives a large portion of our economy forward. The report found that the creative economy accounts for nearly 11% of California’s economic output, and close to 12% of jobs in terms of direct and indirect labor. Also the Metro LA area has the highest percentage of creative workers in the country at 8.6%, above NY Metro at 6.4%.
Pending Legislation Related to Local Business & Labor
Senate Bill SB 436 (Allen): STEM Professional Teaching Pathway Act addresses the growing shortage of qualified science and math teachers by funding a demonstrated program to recruit, train and support additional teaching practitioners, including military veterans, who have had professional careers in a science, technology, engineering or math (STEM) field.
Over the next decade, there will be a projected shortage of 33,000 teachers in math and science that will not be met through California’s current approaches to recruitment and preparation. All the while, other (competing) states are instituting innovative strategies to recruit more STEM industry professionals into the classroom, including New York and Utah, which provide pathways for individuals with industry experience to obtain teaching certificates or licenses. And many more states are exploring inventive strategies to draw more STEM industry professionals into teaching.
STEM professionals bring unique expertise and experience to the classroom, and can help students make the critical connection between STEM-based competencies and real-world professional development and career advancement. Moreover, many studies have shown that STEM professionals who participate in structured teaching pathways are retained in teaching positions at higher rates (85 percent) than those who do not, resulting in cost-savings and efficiencies in addressing the state’s STEM teacher shortage.