While Taylor Swift continues to pack stadiums around the world with her record-breaking Eras Tour, generating over a billion dollars in ticket sales to date, independent artists, small venues, and theaters have faced a much slower recovery from the effects of the pandemic. Even Broadway, often seen as a bellwether for the state of the live performance industry, has yet to return to its pre-pandemic highs. The 2023-24 Broadway season brought in $1.54 billion—a 2.4% decline from the previous season and still well below the $1.8 billion generated in 2018-19.

One of the clear winners coming out of the pandemic, however, has been streaming and production of content for film and television. The global “streaming wars” have fueled unprecedented investment in content production. Netflix alone spent more than $17 billion on content last year, and the combined global spending by all the streaming platforms is projected to reach $250 billion this year.

Given these trends, many cities are striving to become hubs for television and film production, recognizing the immense benefits that the industry can bring to their economies. 

During my place-branding workshop at the recent Association of Film Commissioners International (AFCI) annual conference in Los Angeles, we explored how cities can leverage film and TV production not only for economic development, but to shape the perception and identity of their city as well. The event featured film commissioners from across the globe and executives from major industry players like Amazon, Paramount, and HBO. Based on our discussions, here are five key takeaways from the conference.

1. The Bottom Line is Top of Mind

One of the most immediate and obvious benefits of attracting film and television production, of course, is the creation of jobs. These productions require a wide range of services, from skilled technicians to unskilled labor, spanning pre-production to post-production. The Motion Picture Association reports that film and television production supports more than 2.5 million jobs in the U.S. alone, contributing billions to local economies. That said, there are no universally agreed-upon standards by which to measure this impact and how this is communicated to policymakers to justify the incentives provided is an ongoing challenge.

2. Competition For Investment is Expanding

To accommodate large-scale productions, cities often need to develop or upgrade sound stages, studios, and post-production facilities. These infrastructural investments provide long-term resources for a city’s creative economy, extending beyond immediate production needs. However, with limited space available in key production centers, studios and streamers have become adept at transforming non-traditional spaces into sound stages. This opens new opportunities for smaller cities and towns to attract production investment, even without traditional film infrastructure.

3. Film is a Catalyst for the Creative Economy

Film and television production can catalyze the growth of related industries such as digital media, advertising, and gaming. A thriving creative economy fosters innovation and attracts investment in technology and the arts. Key to this is nurturing a city’s local culture and encouraging residents to also engage in the consumption of film and entertainment. Cities like Toronto and Vancouver have become North American production hubs, supporting both local and international filmmakers, thanks to their robust creative scenes and local engagement with media. And yes: both claim to be “Hollywood North.”

4. Film Tourism: A Boon for Local Economies

Film tourism, where fans visit locations made famous by TV shows and movies, has become a major driver of tourism. For example, New Zealand’s tourism industry boomed after The Lord of the Rings trilogy showcased its landscapes, and Montana has seen similar benefits thanks to the popularity of the seriesYellowstone. A study from the University of Montana found that Yellowstone fans spent an estimated $730 million in the state in 2021, with 2 million visitors citing the show as their reason for visiting. This kind of tourism not only boosts local economies but can also enhance a city or a region’s global brand.

5. The Changing Landscape of Production Investment

While demand for content continues to grow, execs reported that production budgets are tightening. As costs rise, studios and streamers are increasingly looking for ways to do more with less, and one strategy has been to move productions abroad. A recent Association of Film Commissioners International (AFCI) report estimates that while global content production spending will grow between 2022-2028, it will actually decline in North America. This is a cautionary note for U.S. and Canadian developers now considering major investments in permanent production facilities.

So what’s the future of studio and streaming investment in your community?

Many cities and regions have recognized the long-term benefits of television and film production and offer generous rebates, grants, or tax credits that reduce the overall cost of production. As spending in North America begins to slow or even contract, it’s likely that the arms race-like competition when it comes to the incentives offered will only intensify. And it’s in this regard that the brand of place can “tip the scale” as one delegate noted after my presentation. The bottom line will always be a key driver in location decisions, but the perceived quality of place of the location is becoming increasingly important, she noted. Particularly when it comes to attracting top talent who often have to live on location for weeks or months at a time when filming.

The production of film and television should be looked at and measured by much more than just the number of jobs and economic impact created. While the sector not only has both direct, indirect and induced economic benefits, it can also act as a powerful force in shaping the identity of a city or region. And the strength of a place’s brand is also instrumental in attracting more content production. It’s a symbiotic relationship that is quite unique relative to other sectors. A relationship worth fostering and developing that requires the cooperation, and action, of multiple players in a city’s economic ecosystem. 

If you’d like to discuss how Resonance can help you attract more film and television productions to your city or region, we’d love to chat.