Economic Industry Overview

The global film industry continues to grow, accruing billions of dollars world-wide. However, trying to put an economic value on such an industry is extremely difficult. Factors including post production, television distribution, electronic distribution and others need to be taken into account. Film commissions are economic development offices with an extremely targeted market. Film and media can and often do represent a new economic engine and a welcome diversification of a given jurisdiction’s economy.

Over the past 20 years, the global economy has shifted more radically than at any time in recent history. These changes have occurred for a number of reasons. Barriers to the trading of goods and services have been lifted during the last few decades, leading to a growing interaction between nations and economies. This growing interaction is what most people now refer to as globalization.

Technology is a major factor in shaping and characterizing this process. Technological innovation has sharply reduced transportation and telecommunication costs. Technological change has been the primary catalyst for integration. Advances in transportation technologies have also progressed dramatically. While there are inherent risks involved in transporting physical goods and people in a timely manner, technological advances have lowered the cost, increased the speed of delivery and improved reliability. This, in turn, has lead to the development of, and access to new markets previously considered economically inaccessible. The addition of a powerful level of communication has facilitated global transactions.

With diminished costs and new technologies available, the door is now open for a greater level of integration and trade among nations. Corporate interests and individuals have access to services from all over the world they never had before. The major call center industry in India and extensive outsourcing of products to Chinese manufacturers by North Americans are just two examples.

The film industry is no exception to these trends. Consider the amount of post-production services being handled in India and the potential for filming to take place in rural Tahiti, for example. The industry is mirroring the changes that have occurred in other sectors of the economy.