Clocktower Tax Credits had the opportunity to attend the American Film Market (AFM) in early November, where filmmakers and entertainment executives discussed the evolving landscape of the entertainment industry. While there was cautious optimism about the industry’s future, discussions often centered on practical approaches to creating and distributing content in a challenging market.
A key topic discussed at the market was the shift in strategy among streaming platforms, which is resulting in less content being bought and made. With many platforms feeling they’ve already reached and signed up their core audience, their focus has shifted from attracting new subscribers to retaining the ones they have. This has led to a reduction in content acquisition, with streaming services prioritizing quality over quantity. As a result, they are also creating less content in-house. For independent filmmakers, this shift means a greater emphasis on producing high-quality, marketable content that is more likely to sell. Independent filmmakers will also need to look beyond streaming deals and start seeking distribution through independent distribution companies.
Tax incentives continue to be a major topic of conversation at AFM, with filmmakers increasingly looking to state programs to help offset rising production costs. Many states are expanding their tax credit programs to attract filmmakers. Industry professionals agree that utilizing these incentives is important for making productions financially viable. It is also important to ensure that the U.S. remains competitive in the global market. Clocktower works across all 50 states, and internationally for select projects.
The increasing trend of large-budget productions moving to Europe due to high union costs in the U.S. was another major point of discussion at AFM. With unions demanding higher wages and benefits, many large-scale productions are finding it more cost-effective to film in Europe. In contrast, smaller-budget productions continue to rely heavily on domestic tax credits.
The move out of Los Angeles has also been increasing, with more filmmakers looking to other states for financial incentives. Recently, Governor Gavin Newsom has stated that he is focused on strengthening California’s film tax incentive program to help keep productions and production crew jobs in Los Angeles.
Productions aren’t the only thing fleeing Hollywood. One of the biggest points of contention discussed at the market was the relocation of AFM from Santa Monica to Las Vegas. Sales and distribution companies, many of which are based in Los Angeles, expressed frustration with the move. It seemed counterproductive to relocate the event a few hours away to Las Vegas. International attendees also faced longer travel days, as many had to connect through Los Angeles to reach Las Vegas. Additionally, the casino environment in Las Vegas created a difficult setting for networking and business discussions.
Let’s connect! If you’re interested in discussing how tax incentives can help fund your next project or have a credit to sell, please reach out to Haley Ricker at (978) 793-6694 or via email at HRicker@ClocktowerTC.com.