FilmLA is raising prices for a wide range of license fees in an effort to bring its finances back to pre-pandemic levels – eight years from now. The new tariffs, which increase by around 13 to 15%, will take effect on May 1. This is the first time that fees will increase since July 2019.
The agency was hit hard by the loss of revenue from application and permit fees generated by filming on location in and around Los Angeles. “Over an eight-year period,” FilmLA said, “the increased fees are expected to restore FilmLA to a financial position similar to its status at the start of the Covid-19 pandemic.
FilmLA chairman Paul Audley said fee hikes are expected to generate around $ 6 million by 2029 – the amount of reserves the licensing agency lost during the pandemic. “In 2020, revenues were down 50%,” Audley said. “We went through a full quarter without any sales. It came back, but at such a low level that we were losing money every month. More than $ 6 million in reserves were lost during the pandemic. These need to be replenished so that we can continue to support and provide services to the industry. “
The decision to increase fees, FilmLA said, “was made in consultation with our government clients and FilmLA’s board of directors, which is made up of representatives from the film industry and the community. It follows an in-depth analysis of the current program and staff costs, as well as the impact of Covid-19 on our financial reserves and license operating income. “
Ten different fees will increase. The permit application fee, for a maximum of 10 locations, will drop from $ 699 to $ 795; notification fees will drop from $ 173 to $ 198; supervision fees will drop from $ 32.50 an hour to $ 37, and even study permit fees will increase.