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Preliminary film-production study shows roughly $64.6 million gross impact and recommends incentive reform, commission expansion
Summary
Consultants reported preliminary findings that incentivized production generated about $64.6 million in gross value added in Arkansas from FY2014 to FY2025 to date, with a roughly 4.6-to-1 gross return on investment before adjustments.
Consultants from the firm conducting the film production study presented a preliminary report that found incentivized production delivered about $64.6 million in total gross value added (GVA) for Arkansas between fiscal year 2014 and fiscal year 2025 to date and estimated a gross return on investment of roughly 4.6-to-1, before adjustments for economic deadweight.
The consultant summarized the work: the team interviewed more than 30 stakeholders during a research trip to Arkansas — producers, business owners, supply-chain firms, training providers, legislators and filmmakers — and conducted follow-up interviews with investors. The report includes an additionality survey to remove economic deadweight and produce a net-impact figure; the consultant said they did not expect major changes to the gross numbers because incentives “play a very key role in attracting production.”
The preliminary findings call for four headline recommendations: reform the incentive; link any incentive expansion to an industry-development strategy; expand the Arkansas Film Commission’s capacity; and improve data collection and publication. The consultant noted one outlier production that substantially increased aggregate figures and said the report breaks out that outlier to provide a view both with and without that event.
Committee members asked about staff levels at the Arkansas Film Commission and whether staffing affects competitiveness; the consultant said the commission is under-resourced compared with peer states and tied staffing levels in part to the relative size of incentive budgets. A committee member asked whether demand is unlimited; the consultant said production is finite and advised calibrating ambition to realistic state capacity.
The consultants said they will complete the second phase of the study in about two months and finalize the report then. No committee action was required beyond accepting the preliminary presentation.
