May 19, 2020

Oscars, Emmys, VMA's and others: The economic impact of LA's award shows

Los Angeles
oscars
Walt Disney
MTV VMA Awards
Jabong world
3 min
Oscars, Emmys, VMA's and others: The economic impact of LA's award shows

Los Angeles is the undisputed home of blockbuster entertainment and each year the world’s greatest performers meet at a number of glitzy and glamorous awards shows. Famed for lavish dining, expensive sets, extravagant locations and free pouring champagne, it’s believed the average Hollywood awards show costs in the region of $30 to $50 million. This sounds like an obscene amount of money to spend on one night’s entertainment, but how much revenue is injected into the LA economy every year because of them? Answer: A lot.

The MTV VMA Awards and the Emmy Awards have just been and gone for the year, however their presence will surely be felt for many months to come.

According to a study by economic research firm Micronomics, the VMA Awards 2014 will generate in the region of $50 million for LA County. Roy Weinstein, managing director at Micronomics told The Breakdown that spending on hotel rooms, eating and drinking in local restaurants and limo rides all contribute to the LA economy during the event. In addition to the initial economic activity surrounding such events, Weinstein said that increased coverage of the area encourages more tourism to the area.

“People on the East Coast see Los Angeles, our beautiful weather and our beautiful local venues and they decide to spend time here in the coming months,” Weinstein said. Last year's VMAs drew a total audience of 10.1 million people, 66 percent higher than 2012, according to MTV.

In the lead up to the VMAs, the Forum in Inglewood underwent a $100 million renovation, before hosting the show.

“We are thrilled to welcome the VMAs to the 'Fabulous' Forum for the first time,” said Sid Greenfeig, senior vice president, West Coast business operations, the Forum. “The VMAs are one of the year's biggest celebrations of music and entertainment. What better place to showcase this international spectacle than the Forum – a venue known around the world as having hosted some of the biggest names in music and a venue that continues – with the recent completion of its reinvention – to deliver an unrivaled experience for both artists and music fans.”

“I am thrilled to welcome the MTV Video Music Awards to the Forum in Inglewood. Since its reopening in January, the 'Fabulous' Forum has become the destination for music-lovers in Southern California. A truly historic location, and home to some of the greatest concerts and sporting events, the Forum is back, better than ever and ready to shine for decades more. We are truly excited to shine a spotlight on the reinvented Forum and our great city,” said James T. Butts, mayor, City of Inglewood.

Not only does the economy receive a boost from direct sales during the events, but also brings more long-term benefits for example publicizing the city as a music and entertainment hub.

A feature in The Hollywood Reporter also takes a look at the economic benefits behind the Oscars – the Oscarnomics. According to the Los Angeles Economic Development Council, Oscar fever injects a whopping $130 million into the economy every year.

The Academy of Motion Picture Arts and Sciences reported $89.6 million in Oscar-related revenue in a financial statement released in June 2013. The bulk of that income is from the Walt Disney Co., which pays $75 million annually for the rights to broadcast the awards show on ABC through 2020.

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Jun 8, 2021

Six issues at the top of tax and finance leaders’ agenda

Tax
Compliance
financeleaders
Deloitte
Kate Birch
4 min
As businesses accelerate their transformation journeys, tax leaders are under increasing pressure to add strategic value. Deloitte reveals six tax trends

New Deloitte research reveals that tax leaders are under increasing pressure to add strategic value as companies accelerate business model transformation, from undergoing digital transformations to rethinking their supply chains or investing in green initiatives.

According to Phil Mills, Deloitte Global Tax & Legal Leader, to “truly deliver value to the business, the tax function needs to rethink its resourcing model and transform its technology infrastructure to create capacity and control costs”.

And the good news, according to Mills, is that tax and business leaders have more options at their disposal to achieve this.

Reflecting the insights of global tax and finance executives at global companies, Deloitte’s Tax Operations in Focus study reveals the six issues at the top of tax and finance leaders’ agenda.

Trend 1: Businesses seek more strategic counsel from tax

Companies are being pushed to develop new digital products and distribution channels and accelerate sustainable transformation and this is taking them into uncharted tax territory. Tax leaders say their teams must have the resources and skills to give deeper advisory support on digital business models (65%), supply chain restructuring (49%) and sustainability (48%) over the next two years. This means redrawing the boundaries of what tax professionals focus on, and accelerating adoption of advanced technologies and lower-cost resourcing models to meet compliance requirements and free up time.

According to Joanne Walker, Group Tax Director, BT Group PLC, "There’s still a heavy compliance load today, but the vision for the future would be that much of that falls away, and tax people become subject matter experts who help program the machine, ensure quality control, and redirect their time to advisory activity.”

Trend 2: Tipping point for resourcing models

Business partnering demands in the tax department are on the rise, but 93% of tax leaders say their department’s budget is remaining flat or falling. To ensure that the tax function can redefine itself as a strategic function at the pace that is required, leaders are choosing to move increasing amounts of compliance and reporting to a combination of shared service centers, finance departments, and outsourcing providers that have invested in best-in-class technology.

Trend 3: Digital tax administration is moving faster than expected

in addition to the rising focus of the corporate tax department partnering with their business counterparts, transformative changes to the way companies share tax information with revenue authorities is also creating an imperative to modernize operations at a faster pace. Nine in 10 (92%) respondents say that shifting revenue authority demands on digital tax administration will have a moderate or high impact on tax operations and resources over the next five years—and several heads of tax said the trend is moving faster than expected.

"It’s really stepped up in the last couple of years," says Anna Elphick, VP Tax, Unilever. "Tax authorities don't just want a faster turnaround for compliance but access into a company’s systems. It's not unreasonable to think that in a much shorter time than we expect, compliance will be about companies reviewing a return that's been drafted by the tax authorities."

Trend 4: Data simplification and lower-cost resourcing are top priorities

Tax leaders said that simplifying data management (53%) and moving to lower-cost resourcing models (51%) must be prioritized if tax is to become more proactive at delivering strategic insights to the business. Many tax teams are ensuring that they have a seat at the table as ERP systems are overhauled, which is paying dividends: 56% of those that have introduced NextGen ERP systems are now highly effective at supporting the business with scenario-modeling insights. Only 35% of those with moderate to low use of NextGen ERP systems said the same.

At Stryker, “we automated the source P&L process for transfer pricing which took a huge burden off of the divisions," says David Furgason, Vice President Tax. "Then we created a transfer price database to deposit and retrieve data so we have limited impact on the divisions. We are moving to a single ERP platform which will help us make take the next step with robotics.”

Trend 5: Skillsets are shifting

Embedding a new data infrastructure and redesigning processes are critical for the future tax vision. Tax leaders are aligned — data skills (45%) and technology process experience (43%) are ‘must have’ skills in a tax department of the future, but more traditional tax specialist knowledge also remains key (40%). The trick to success will be in tax leaders facilitating the way these professionals, with their different backgrounds, can work together collectively to unlock lasting value.

Take Infineon Technologies, which formed a VAT technology and governance group "that has the right knowledge about how to change the system to ensure it generates the right reports", according to Matthias Schubert, Global Head of Tax. "Involving them early was key as we took a greenfield approach, so we could think about what the optimal processes would look like and how more intelligent systems could make an impact 

Trend 6: 2020 brought productivity improvements

Improved productivity (50%) and accelerating shifts to remote working (48%) were cited as the biggest operational benefits to emerge from COVID-19-driven disruption. But, as 78% of leaders now plan to embed either hybrid or fully remote models in the tax function long term, 34% say maintaining productivity benefits is a top concern. And, as leaders think about building their talent pipeline and strengthening advisory skill sets, 47% say they must prioritize new approaches to talent recognition and career development over the next two years, while 36% say new processes for involving tax in business strategy decisions must be established.

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