Showbiz ties electronic equipment at top of Calif. economy

MPAA report sez biz generated $27.5 bil in '96

By LEONARD KLADY

Entertainment production in California now ranks with the electronic equipment sector as the state's top industry, according to a report issued today by the Motion Picture Assn. of America.

Spanning the period from 1992 through 1996, the economic impact report estimates motion picture, television and commercial production generated approximately $27.5 billion in California economic activity in 1996, an increase of 69% over the four year period.

Other highlights of the report include:

• A 38% boost in employment to 226,000

• Average salaries of $53,000, a hike of 18%

• An increase in production starts of 79% with 572 identified in 1996

• Consumer spending on filmed entertainment rose 29% to $32.3 billion

• Close to 93% of entertainment expenditures occured in Los Angeles County

The report refers to the sector as the "star of California's economic recovery." Economic activity in filmed entertainment out-paced U.S. gross domestic growth by 69% to 21% and average salaries in the industry increased at double the national pace. Entertainment industries employment was the fastest growing of any major industry in the state during the period.