Entertainment
Is California's film and TV tax credit in danger? Unions say so
Eager to negotiate a measure off the 2024 ballot that would make it harder to raise taxes, unions are alleging the initiative would end a California program that awards hundreds of millions of dollars annually in tax credits to television and film studios.
The claims are part of an effort by unions to increase pressure on business interests backing the measure to strike a deal to remove the proposal from the November ballot, which remains possible amid an intense negotiation period at the California state Capitol. If the concerns about the tax credits catch on, movie studio executives could be a powerful addition to the opposition campaign.
Losing film and television tax credits would be particularly damaging as the motion picture industry struggles to recover from the COVID-19 pandemic, two major strikes and an ongoing industry contraction.
“This thing has the potential to devastate our industry and the jobs that support it, as well as those that are touched by this industry,” said Thom Davis, president of the California council for Hollywood crew members union IATSE.
So far, no movie studios have joined the opposition campaign led by the Service Employees International Union California, California Teachers Assn, Northern California Regional Council of Carpenters and the State Building & Construction Trades Council of California.
Warner Bros. Discovery and a lobbyist for the Motion Picture Assn. declined to comment. The Times reached out Tuesday to several other major studios, including Disney, NBCUniversal, Sony, Paramount and Netflix, for comment.
The California Business Roundtable, a proponent of the measure, pushed back on the union claims. The film credits are a tax deduction, not an increase, and would not be affected by the ballot initiative, the business organization said.
“We’ve been waiting for these kinds of scare and intimidation tactics for weeks,” said Rob Lapsley, president of the roundtable.
Removing the Taxpayer Protection and Government Accountability Act from the November ballot is a top political priority of labor unions and Democrats, who are afraid voters will support the proposal and tip the balance of power in Sacramento.
The proposal, pushed by Lapsley’s group and the Howard Jarvis Taxpayers Assn., strips the state Legislature and the governor of the ability to increase taxes without statewide voter approval. The measure could limit state and local funding and make it more challenging for the governor and Legislature to generate funding for new programs, or respond to an economic crisis without sacrificing their own policy agenda.
The measure would have a “chilling effect on government’s ability to invest in services and infrastructure that the state of California and Californians need in order to grapple with all of the challenges ahead,” such as climate change, an aging population and the rise of artificial intelligence, said Keely Bosler, former director of the California Department of Finance who is working with the opposition campaign.
Gov. Gavin Newsom and Democratic state lawmakers petitioned the California Supreme Court last September to intervene, arguing that the change revises the California Constitution and should require a two-thirds vote in the Legislature to appear on the ballot. The high court heard oral arguments on the case in May and could offer a ruling to strike the measure from the November ballot.
Lawyers for the proponents and the opposition campaign disagree over whether the measure will impact film and TV tax credits.
The measure asks voters to require local governments to vote on all fee increases, which can now be approved administratively. The threshold to increase local special taxes would increase from a majority to a two-thirds vote of the people.
Fee increases at the state level, which are often approved by state agencies and boards, would need support from a majority of the state Legislature. The ballot measure also would expand the requirements necessary for a statewide tax increase, which currently can be done with a two-thirds vote of the Legislature. Under the measure, support from a majority of California voters also would be required.
The measure expands the definition of taxes and restricts the potential use of fees to only cover the cost of the service, potentially prohibiting government from redirecting revenue to other purposes.
Opponents say California’s film and TV tax credit program — which underwent a significant makeover in 2023 — could be in jeopardy due to a provision in the proposed ballot measure declaring that “any change in state law which results in a taxpayer paying a new or higher tax” must be passed by at least two thirds of the legislature and approved by a majority vote of the people.
A retroactive clause states that “any tax or exempt charge adopted after January 1, 2022, but prior to the effective date of this act” that was not implemented according to the above rules will be void one year after the measure is passed “unless the tax or exempt charge is reenacted in compliance with the requirements.”
Detractors have interpreted those excerpts to mean that Senate Bill 132 — a 2023 law extending California’s film and TV tax credit by five years and incorporating a new “refundable” feature permitting certain studios to qualify for direct payments from the state — would be overturned if the ballot measure passes in November. SB 132 isn’t scheduled to go into effect until 2025, so the opposition campaign is sounding the alarm about future funding to the tax credit program.
Unions began delivering the warnings in the final stretch of budget negotiations at the state Capitol. Newsom and Democrats are negotiating among themselves, unions and other interest groups about delaying an increase to the minimum wage for healthcare workers to $25 per hour and a pause on tax credits for businesses to close California’s $45-billion budget deficit.
Those talks are intertwined in conversations about the 2024 ballot measures. Under state law, proponents have the ability to withdraw their measures from the ballot before the June 27 qualifying deadline. Lapsley said he has been open to having talks about the provisions of his measure with opponents, but that hasn’t happened.
“We’ve been crystal clear that we would respect anyone who wants to sit down and have a discussion,” Lapsley said.
But Lapsley has also been adamant about the need for his proposal.
“The importance of [Taxpayer Protection and Government Accountability Act] for the statewide business community as a long term check and balance against a permanent two-thirds super majority progressive Legislature far outweighs any individual elements that they may be talking about at this point,” Lapsley said. “So that is our perspective on this, and that is why we continue to just move forward.”
The potential effects of the measure on the film tax credit could be a compelling argument for unions.
California currently awards about $330 million annually to dozens of entertainment companies that film in state — a relatively low number compared to more attractive tax programs offered by production hubs in other states and countries that compete with Hollywood for business.
Industry insiders and experts have cited the weakness of California’s tax credit program as one of several reasons why film and TV production has been declining in the state. A recent report by the Otis College of Art and Design found that Los Angeles’ share of domestic film and TV employment dropped 8% last year, losing ground to rivals such as Atlanta and New York.
A complete reversal of SB 132 would spell “absolute devastation” for the local entertainment community, Davis said. The Hollywood crew members he represents are already hurting badly from last year’s work stoppages and the sluggish return to production.
“California would just not be able to compete anymore,” Davis said.
“The questions [entertainment workers] are asking is, ‘Why would they do this to us?’” he added. “It’s almost like a personal attack.”
Entertainment
La Cruz offers a musical memorial to Pulse shooting victims on Pride Month
As La Cruz continues to break down barriers for the LGBTQ+ community in reggaeton, the rising Venezuelan star enjoys living out his gay fantasies in his music videos. Take the sultry video for his 2023 breakthrough single, “Quítate La Ropa,” which sees shirtless men perreando (twerking) before him in a locker room.
But at the same time, La Cruz has come to understand that his platform as a gay reggaeton artist coincides with a time when conservatism is sweeping the globe — and queer rights are receding.
“It fills me with happiness to represent a community that has been denigrated, treated badly and pushed into a corner for many years,” a bedheaded La Cruz says over Zoom from his New York City hotel room. (He had just performed at a Pride event the night before.)
“It’s a fact that [LGBTQ] rights are becoming progressive, but they’re rolled back even faster than they advance,” he adds. “This is very painful and concerning. This is happening in every country in different ways. During these difficult times, I’m going to keep putting my heart into my music more than ever.”
La Cruz is the stage name of Alfonso La Cruz. The native of La Guaira, a coastal city in Venezuela, pursued a music career after relocating to Spain in 2015. Following a brief stint on the singing competition “Operación Triunfo” three years later, La Cruz was closeted and found his momentum stifled. In 2022, he took the brave step of singing about his affection and lust for other men in his debut album, “Hawaira.”
Venezuelan reggaeton singer La Cruz released his new EP, “El Nene, Vol. 2,” on June 11.
(Maria Camila Pinzon)
Backed by the beats of reggaeton, a genre that had historically excluded the LGBTQ+ community, La Cruz found both his groove and his tribe with hits like “Te Conocí Bailando” and “Quítate La Ropa.” Early supporters included Colombian superstar Karol G, as well as Mexican American R&B singer Omar Apollo.
Alongside Puerto Rican provocateurs like Young Miko and Villano Antillano, La Cruz has continued to queer the heteronormative urbano space. He has also pushed his sound to broader horizons in his new EP, “El Nene, Vol. 2,” which includes “Sírveme,” a Brazilian funk banger with drag pop star Gloria Groove — and “Te Perdí,” a touching tribute to the victims and survivors of the 2016 Pulse nightclub shooting in Orlando, Fla.
La Cruz’s EP dropped on June 11, the day before the 10th anniversary of that tragedy, which largely impacted the queer Latino community. In an interview with The Times, he opened up about being a gay reggaetonero and “Te Perdi,” his tribute to the 49 people lost at Pulse.
It’s been three years since you first went viral with “Quítate La Ropa.” What have you learned about yourself during that time?
There are songs that have brought me a lot of love and I’m thankful to my fans that consider that song to be a classic. It’s brought me a lot of blessings. At this moment, I feel like I have the best opportunities in my life. However, I feel like the industry is a bit uncomfortable with an artist that’s openly gay and wants to be a part of this. That hasn’t stopped me at all. It’s the gasoline in my motor. It’s what pushes me to keep working hard. My fans are what’s building my career and I won’t let them down. I’m sticking with this until the end.
You connected with Karol G early in your career. Did she give you any advice when you met her?
I want to say publicly that I would love to open for her concerts on her Viajando Por El Mundo Tropitour. I’m very close to her. I love her so much. She has always treated me with so much love. I hope that something between me and her can happen sometime. I know everything happens in due time. I told her that I love the way she is and how she connects with her fans. When I see her singing and performing, I feel like she’s a sister to me. A big piece of advice that she gave me and that I’ll always carry with me is to never lose the humility and closeness that I have with my fans. The key to success is humility. I never want to be out of reach. I want people to see me and say, “I want to achieve my dreams like he has.”
How did your collaboration “Sírveme” with Gloria Groove come together?
I love her so much! I’ve always been a big fan of hers. I’ve gotten close to a lot of artists in Brazil and Gloria has been one of them. We didn’t think twice about making this song. Gloria was coincidentally traveling to the amusement parks in Orlando. I told her: “Baby, let’s go! I’m ready for you in Miami.” She told me: “Baby, I’m going to Miami!” We met one afternoon to create this song. She paused her vacation to go to the studio with me. It was very beautiful. I love my Brazilian fans.
With “El Nene, Vol. 2,” why was it important for you to also shed a light on the 10th anniversary of the Pulse nightclub shooting?
In 2016, when I recently arrived in Spain and my brother recently arrived in the U.S., we had a call with our family. My brother said, “There was a shooting close to where I live and it was in a gay club.” My family has supported me since I first told them about my sexuality. I thought that that could’ve happened to me.
I’m following up on this tragedy because it shaped my life. As the years go on, information about this attack has faded away. Each day people are talking less about it. It’s a tragedy that’s super important to remember, like 9/11 and the [2017] Las Vegas shooting, because it’s one of the worst attacks in U.S. history. Why are we not talking about it anymore? We have to keep talking about things so that they don’t happen again.
What inspiration did you pull from the Pulse tragedy for your song “Te Perdí”?
On this path, I’ve gotten to know the stories of people that survived that shooting. For example, there was a boy with his mother that lost her life and he survived. There’s a lot of stories of love from that club that have [since] come out. When I went to the studio, I was inspired by loss, or a love that’s gone away, with respect and love for the community that supports me. It is my gift, to be a voice for this situation that should never be repeated. There are people that don’t know about this tragedy and I want to let the world know that this happened. I hope that the victims’ families and the people that survived are living lives of peace and calm.
Movie Reviews
8News Reel Talk: ‘Toy Story 5’ movie review
RICHMOND, Va. (WRIC) — In this episode of 8News Reel Talk, Julia Broberg sits down with Hekla Petursson and Catori Ryan to talk about “Toy Story 5.”
The hosts gave their reviews and provided the following star ratings:
Catori: ★★★★
Hekla: ★★★★★
Julia: ★★★★.2
To watch more livestreams and digital video content, head to the WRIC+ Originals page. You can also watch full on-demand videos on your smart TV using the WRIC+ app.
Entertainment
How Culver City-based Scopely built ‘Monopoly Go!’ into a mobile games juggernaut
Passing “Go” has become especially lucrative for mobile game publisher Scopely.
The Culver City-based Scopely launched “Monopoly Go!” in 2023, betting fans of the classic board game would flock to a mobile version aimed at casual gamers.
By 2025, “Monopoly Go!” had accrued $6 billion in lifetime in-app purchase revenue, becoming the fastest free mobile game to do so, according to app analytics firm Sensor Tower.
This summer, the app is expected to reach $8 billion in lifetime revenue, the company says, solidifying “Monopoly Go!” as Scopely’s biggest game and far surpassing the company’s popular “Pokémon Go.” The company declined to disclose its total profits.
Scopely Co-Chief Executive Javier Ferreira.
As overall downloads in the mobile game market have stagnated and in-app purchases and retention become the main drivers of growth, Scopely has hit on an age-old Hollywood strategy — using known franchises and intellectual property to bring out fans.
“These are incredibly durable and long-lasting games that have really passionate communities and fandom around them,” said Javier Ferreira, co-chief executive of Scopely. “We’re in the business of building people’s favorite thing, and that’s a difficult thing to do. The power of [intellectual property] is that, in some cases, that is already their favorite thing.”
The company’s journey toward “Monopoly Go!” began in 2014, when Scopely formed a partnership with Rhode Island-based toymaker Hasbro. Its first collaboration was a Yahtzee mobile dice game that ultimately drew millions of players worldwide (though it was especially popular in the U.S.) and generated more than $1 billion in lifetime revenue.
After that, Scopely approached Hasbro about taking on the “crown jewel” of its board game empire — Monopoly.
Monopoly’s massive global popularity was an obvious draw. But adapting an hours-long real estate transaction game for a casual, mobile audience proved challenging.
Development of what would become “Monopoly Go!” ultimately took seven years, two of which were spent trying to make movement around the board more fun. In that time, the company scrapped two versions of the game; one deemed too competitive, and one that was too complex, Ferreira said.
Developers wanted to capture the “roller coaster feel” of the board game’s highs and lows, while also having simple rules and ensuring a strong social element, he said.
“We couldn’t just copy,” Ferreira said. “We had to reinvent it and re-imagine it, and that’s a complicated, creative endeavor.”
Today, “Monopoly Go!” brings in more than $2 billion in annual revenue and has been downloaded across the globe more than 300 million times.
Now with “Pokémon Go,” which the company owns after acquiring maker Niantic’s game business last year, “Scopely has gone from a successful publisher to one of the defining companies in mobile gaming,” Randy Nelson, head of insights at Appfigures, a mobile app analytics firm.
“The company cracked the code on licensed games years ago,” he wrote in an email. “Its biggest hits work because they’re great games first and recognizable brands second.”
Though the company’s overall game downloads have slowed, its gross revenue has largely increased every year since 2020, according to Appfigures data.
Shortly after Scopely released “Monopoly Go!,” the company was acquired by Savvy Games Group, which is owned by the Saudi Public Investment Fund, for $4.9 billion.
In a statement about the deal, Savvy Games Group Chief Executive Brian Ward touted the success of “Monopoly Go!” as “indicative of Scopely’s ongoing position at the forefront of the global games sector.”
Representatives of the Saudi investment fund are part of Savvy Game Group’s board and do sometimes give some feedback on company initiatives, though Ferreira said the company has remained “very independent.”
The proposed acquisition of gaming giant Electronic Arts by the Saudi Public Investment Fund is not expected to affect Scopely since EA largely focuses on high-budget console and computer games, he said.
As Scopely, now 3,000 employees strong, looks to the future, it has embarked on a number of entertainment partnerships with studios to add franchises such as “The Simpsons,” “Hello Kitty” and Marvel to its mobile game ecosystem.
“They give us access to these universes that millions of people love and are really invested in,” Ferreira said. “We see this as a very strategic part of our business.”
-
Lifestyle32 minutes ago‘The Bear’ is back in the kitchen
-
Technology44 minutes agoAndroid 17’s new foldable gaming mode could make flippy phones more fun
-
World47 minutes agoShark attack survivor wakes from 10-day coma and shares first words with family at her hospital bedside
-
Politics52 minutes agoTrump administration pledges $150M in aid, deploys Navy warships after deadly Venezuela earthquakes
-
Sports1 hour agoSecond Lady Usha Vance joins celebrity-filled crowd for Team USA’s group-stage finale in LA
-
Technology1 hour agoDebt collection letter for debt you don’t owe? What to do now
-
Business1 hour agoNewsom blesses Uber ballot measure truce — but fight over car crash lawsuits continues
-
Entertainment1 hour ago
La Cruz offers a musical memorial to Pulse shooting victims on Pride Month