New Economic Impact Study

Large new study on the effectiveness and economic impace of the state tax credits for film, music, and video games. Here are our quick takeaways:

• Over $600 million in direct economic impact from the film tax credits, but at a $100 million cost.
• The Sound recording credit is vastly underused, with only 19 projects taking advantage of the credit in 2007. Why? Too cumbersome? Musicians being musicians?
• Regardless, that same 6 to 1 benefit holds for both the film and music tax credits, it's just on a much smaller scale for music.
• Despite the reputation as musical hotbed, La is ranked #32 for location quotient for the music industry.

Now for some errata:

• CD sales were still 82% of all music sales in 2007. Digital downloads were 11%.
• Average Jimmy Buffett ticket price is $136!!! Good god.
• Buffett grossed more than $35 million touring in 2007.

Anyway, worth a read if you have a few spare hours and plenty of paper.