Listen to this article 5 min
Over the years, the film and media industry has been one of the lesser-known players in the Texas economy, but some in the industry say the Lone Star State is on its way to being a go-to place for films and TV shows. Paul Jensen, executive director of the Texas Media Production Alliance, was a recent guest on the Texas Business Minds podcast, where he discussed what's needed for Texas to thrive in this growing part of the domestic economy.
Over the years, the film and media industry has been one of the lesser-known players in the Texas economy.
From critically acclaimed movies like “Boyhood” to cult classics like “Office Space” and “Waiting for Guffman,” as well as recent TV series such as “Love and Death,” the state has been a prominent filming locale for decades. Not to mention that it’s also home to famous creators like Richard Linklater, Robert Rodriguez and Taylor Sheridan.
Some in the industry say it’s only a matter of time before Texas rivals other filming hubs like Hollywood, Georgia or New Mexico. More films and TV shows are being shot in the Lone Star State — Sheridan’s “Yellowstone” prequel “1923” is headed to Austin — drawn by its business-friendly attitude, quality of life and varied terrain than enables filmmakers to figuratively transport audiences almost anywhere in the world. Film studios are being built in Dripping Springs, San Marcos and Bastrop.
Still, film production is an industry that heavily relies on financial incentives, and while support for such tax breaks has grown in Texas in recent years, it still lags many other areas. But there’s optimism among industry leaders that the Lone Star State can support a flourishing industry.
“We are really optimistic about the future, and I would say that we are currently really competitive for the first time in many years as a viable production hub for film, television and digital media,” Paul Jensen, executive director of the Texas Media Production Alliance, said.
Jensen was a recent guest on the Texas Business Minds podcast to discuss what’s needed for the industry to grow. The entire conversation can be heard using the player at the top of this article or on platforms such as Apple Podcasts and Spotify. Below are a few excerpts from the interview, which have been edited for brevity and clarity.
On whether Texas could rival Hollywood or New Mexico’s film industries:
Yeah, absolutely. … Texas used to be a very, very viable and competitive place to do movie productions. Back in the ’90s, we were colloquially known as the “Third Coast” because we had so much production here behind (Los Angeles) and New York. But with the advent of these incentive programs … first internationally with places like Canada, and then with (state programs) like Louisiana, it’s made it really difficult. I think Texas has been in a position where we’ve been working to catch up. But I think the dynamics have changed significantly, where Texas is really embracing our industry, and we’re in a position where we can really, really reap the benefits where we’re on par or better than places like New Mexico and Georgia.
On the advantages and disadvantages of filming in Texas:
I will start with the disadvantages. I would not label our current incentive program as the most competitive when compared to the other 38 domestic incentive programs. We use a grant or rebate program, where the majority of (states) use a tax credit program. There’s some reasons behind that, but mainly Texas doesn’t have a state income tax, so creating a tax credit program is a lot more problematic than other places like Georgia and Louisiana. That said, Texas is the easiest place in America to do business. Everyone wants to come here because we approach every business opportunity as “Yes, we want to be able to help you to do that,” whereas a lot of places say, “No, there’s no way you can do that.” It’s that can-do spirit that really puts Texas on the map, not just in our media production industry, but in every industry. In addition to that, Texas is such a great place to shoot film and television because we have such a wide array of locations and creative hubs all across the state. We are a place that has a lot of infrastructure and a growing crew base to accommodate these productions.
On whether the $200 million in incentives secured for the Texas Moving Image Industry Program during the last legislative session has helped:
The answer is it’s absolutely helped. I think our biggest critique was we had a program that kept us in these conversations, but it was woefully underfunded. So when we were dealing with $50 million to help incentivize the media production industry over two years, we would consistently run out of money. And when there’s no money allocated to the program, we effectively don’t have a program. So $200 million is the first time where we found a sweet spot where we can accommodate a lot of production with our existing infrastructure and crew base and really reap the benefits of the economic impact and the job creation of this industry. So 200 is a really, really great place of getting us in the right frame of mind to really do this, and ultimately that’s what it’s about. I mean this is a great industry, because it creates a lot of jobs, it’s climate friendly, and it’s a clean industry, and it really injects in communities all across Texas.
Every dollar that’s invested in our program, it results in about $5.20 coming back in economic spent. So you look at a $200 million allocation for this program, you’re looking at over a billion dollars of incentivized film, television video game projects happening all across the state of Texas. That’s really, really significant, and we haven’t been in that position yet. So we’re looking forward to seeing how that changes communities.
On supporting future efforts to establish incentive programs at the state level:
At TXMPA, we advocate on behalf of the industry. So we want a program that helps incentivize our industry to come here but is also really built to be pragmatic and responsible for the Texas taxpayer. We can’t have a program that doesn’t match the needs on both sides. We are advocating for a long-term solution. So the way the program currently works is the funding has to be approved every two years … When that happens, it’s really hard to merit major infrastructure investment in the state of Texas when these industry players, they don’t know if we’re going to have an industry three, four (or) five years down the road. So our focus right now is really working with our government officials and our Texas legislators to come up with a sound strategy of building that long-term solution.
On his 10-year outlook for Texas’ film industry:
This industry is at the forefront of a lot of innovation, and we constantly see our industry partners trying to embrace that technology as quickly as possible and implement it. I think that’s going to stay consistent over your next 10-year timeline. What I will also say is that we as a society engage in and consume more content than ever before. I don’t know what that content is going to look like 10 years from now, or what kind of format, but what I want to make sure is that Texas is at the forefront of that, and that we embrace that innovation and we help guide it and lead it. I’m really excited about some of the things that I’m seeing right now. … You may be tracking that Texas A&M is building these new virtual production institutes. I know University of Texas is following similar plans to help identify a virtual production facility here in Austin. That’s really exciting because we are teaching the next generation of filmmakers on the very, very best innovations that are hitting our marketplace.
© 2024 American City Business Journals. All rights reserved. Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement (updated August 13, 2024) and Privacy Policy (updated July 3, 2024). The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of American City Business Journals.
