MPAA: Hollywood Is Key Driver Of U.S. Economy With $49 Billion Payout, Salaries Much Higher Than Nat’l Average

Hollywood 2017 2018
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The Motion Picture Association of America released economic figures today culled from an analysis of data from the Bureau of Labor Statistics 2016 report — only made available in late 2017 — which shows that the American film and TV industry accounted for supporting 2.1 million jobs and 400,000 local businesses across this country. It says that the industry “continues to be a key driver of the U.S. economy, adding high quality domestic jobs and paying out $49 billion to local businesses across the country.” But wages are — on average — about two-thirds higher than other industries in this country.

The 2.1 million jobs is up slightly from the 2 million the industry supported in 2015, the study showed. Total wages paid out by the industry also rose by $4B to reach $139B, with an average salary 42% higher than the national average. Direct industry jobs accounted for a total of $53B in wages. There were nearly 342,000 jobs in the core business of producing, marketing, manufacturing, and distributing movies and TV shows. The average salary was $90,000, or 68% higher than the average salary nationwide.

You can read more about the MPAA analysis here.

Also interesting is that Hollywood generated $20.6B in public revenues in 2016 from sales taxes on goods, state income taxes, and federal taxes including income tax, unemployment, Medicare and Social Security, based on
direct employment in the industry.

Jobs directly related to the production and distribution of film and TV shows increased by 24,000 over the prior year to almost 700,000 jobs. The number of businesses that comprise this industry also rose by 5,000 to hit 93,000 – 87% of which are small businesses that employ fewer than 10 people, according to findings. In all, Hollywood supports 400,000 local businesses.

What’s driving these increases? The MPAA noted that “rapid growth of creative content development and the industry’s digital transformation” has contributed to this economic influx. They say that about 454 original series aired in 2016, helping drive job creation and supporting local vendors.

“While the awards season often focuses on glitz and glamour, it’s important to recognize that the impact of America’s film and television industry extends far beyond the red carpet,” said Charles Rivkin, Chairman and CEO of the MPAA in a statement. “This industry is one of the nation’s most powerful cultural and economic resources, supporting 2.1 million hard-working Americans in all 50 states and hundreds of thousands of local – mostly small – businesses.”

Around the globe, the demand for content has also continued to grow to meet the demand of multiple platforms. While Hollywood content is a major export, the MPAA said that there is “a positive balance of trade” in almost all countries with $16.5B in exports globally.

This article was printed from https://deadline.com/2018/01/film-and-tv-industry-49-billion-payout-u-s-economy-average-salary-42-percent-higher-than-national-average-1202244209/