BUSINESS

Take two: Arizona film office gets another chance

Russ Wiles
The Republic | azcentral.com
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  • A public-private partnership is reviving an Arizona film office to encourage media projects here
  • Arizona doesn't offer an income-tax subsidy to entertainment companies, unlike many other states

Arizona is making a renewed effort to promote its film and entertainment industry globally.

The Arizona Commerce Authority has revived the state's film office with financial help from GoDaddy Inc. founder Bob Parsons, who owns one of roughly 20 studios operating in the state. The effort will focus on marketing and promotion rather than offering income-tax incentives to production companies, as is common in many other states.

The new entity, called Studio 48, the Arizona Office of Film and Media, references Arizona's entry into the union as the 48th state. It will promote Arizona as a premier location for entertainment ventures, starting at a global production conference in London next week. Part of the focus will be on emerging digital media.

"We want to make sure film and other media production companies feel welcome in Arizona," said Sandra Watson, president and chief executive officer of the Commerce Authority.

Matthew Earl Jones, half-brother of actor James Earl Jones, will head Studio 48, the new Arizona film office.

The office (azstudio48.com) will have just two employees initially including Matthew Earl Jones as director. He's a veteran TV-commercial producer who also has worked in various other capacities in the film, advertising and music businesses, with a lengthy list of industry contacts.

"This is a relationship business, said Earl Jones, 59, the half-brother of actor James Earl Jones. "I want to let them know Arizona is ready for business."

Troubleshooting help

Along with marketing, the focus will be on helping companies secure filming permits, find talent, scout locations,  assist with street closures and solve problems. Parsons and the company he owns, YAM Worldwide, will contribute more than $250,000, or roughly half, of the expenses to operate the office for a seven-month period through July 31, after which the program will be evaluated for possible continuation.

"Shooting a picture or other big production is a complex thing," said Parsons, the founder of GoDaddy,  the internet name registration and technology-solutions company that has emerged as one of Arizona's most valuable businesses, with a current stock-market worth near $6 billion.

GoDaddy founder Bob Parsons, shown at his Sneaky Big Studios, will help to subsidize Studio48, the new Arizona film office.

"Anyone calling Arizona up to now with a problem or question will find there's nobody answering the phone because there's nobody there to answer the phone," he said, in reference to the previous film office closing around 2010. "The purpose of the film office is to break down barriers."

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As the founder and former head of GoDaddy, Parsons launched one of the most successful television commercials ever with a somewhat risque 2005 Super Bowl ad that, he said, boosted the young company's global market share from 16 percent to 25 percent within a week. "That commercial is one of the things that helped make that company," he said.

Parsons, one of the state's wealthiest residents, owns Sneaky Big Studios, which has made commercials for his various other businesses, ranging from a motorcycle dealership to a financial company. Parsons continues to sit on the board of GoDaddy but said that corporation has no connection to Sneaky Big, his other companies or the film office.

"As we waded further into this business, we became aware that Arizona has a tremendous amount to offer" to entertainment-production companies, Parsons said.

The tax question

From 2006-2010, Arizona  offered a state income-tax credit that helped to subsidize production costs for filmmakers. Watson said there's no effort to revive the tax break. Parsons said he'd like to see the state or municipalities offer a rebate of sales taxes to entities that make movies, TV shows, commercials or engage in other entertainment projects here.

A study by professors at the University of Southern California earlier this year argued that state tax incentives don't generate sufficient long-term economic returns to justify their costs and indicated some states are scrapping these programs. The study asserted that major film production centers, Los Angeles in particular, enjoy a critical mass of related businesses, infrastructure and specialized labor that makes it difficult for other areas to wrest significant market share away.

Earl Jones said he doubts whether tax incentives create permanent jobs and indicated he would focus his promotional message around the state's other attractions, from impressive natural scenery to a talented local labor pool.

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"A lot of states have been questioning how successful their tax incentives have been," he said. "I'm thrilled to see a renewed interest in the economic vitality of the film industry and what it can do for Arizona."

Earl Jones said the office's "media" description could include anything from animation and graphics design to broadcast journalism. He will report directly to Watson, who said the office's mandate is designed to be broad. She also said the first-year goal of the office is to raise awareness of Arizona in the entertainment industry.

Earl Jones said he expects to collaborate with the handful of city film offices, including those run by Phoenix and Tucson. Phil Bradstock, commissioner of the Phoenix Film Office, said he's excited to see the Arizona office reopen, adding that it will help to promote non-urban areas of the state and cities lacking a film office.

While Arizona hasn't landed many high-profile movies in recent years, there has been a lot of work locally focused around TV commercials and other types of advertising.  "We do a tremendous amount of commercial work in the Phoenix market," Bradstock said.

Earl Jones will lead a small Arizona contingent to the London conference Dec. 6 and 7. He will disseminate the message that Arizona is a place capable of providing support for production companies, with convenient access through Sky Harbor International Airport to global visitors and close proximity to post-production businesses and other entertainment services in the Los Angeles area.

Reach the reporter at russ.wiles@arizonarepublic.com or 602-444-8616.

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GoDaddy founder Bob Parsons, shown at his Sneaky Big Studios, will help to subsidize Studio48, the new Arizona film office.