Governor Phil Murphy has made television and movies a top priority for New Jersey since taking over as governor of the Garden State in 2018. This week, Governor Murphy flew to the West Coast to discuss and engage with Bay Area companies about artificial intelligence. New business with Hollywood studios. Murphy’s targeted courtship helped spark a boom in the construction of sound stages and production facilities across New Jersey. Here, Murphy discusses the impact of the state’s production tax incentive program and why he thinks Georgia is a bigger competitor for attracting productions than neighboring New York.
You’ve just returned from a trip to the West Coast promoting New Jersey as a growing media and entertainment hub. What was your specific mission and how do you feel your conversations were received?
I have carried out this activity every year since I took office. As governor, film, television and digital have been a priority from day one.and conversation [with Hollywood] It just got better. As a result of fine-tuning our incentives, we are now one of the most competitive companies in the world. We’ve gotten to know the players personally over the years now, and many of them are working on big projects in New Jersey. Thanks to all this, our series of missions has been more successful than before, and this one was no exception.
We marketed New Jersey and reached out to people who were already investing and producing TV series and movies in New Jersey. It was very well received. Obviously the incentives are more competitive than anywhere else in the world, but the soft side is there as well. We have values that are really important to us. It could be reproductive freedom, being the first state to raise a family, the climate, whatever. We are a large pro-union nation, including IATSE, Teamsters, SAG-AFTRA, and writers. There’s a lot to like about New Jersey.
What are the specific selling points of doing business in New Jersey and New York? Do you have a purely economic discussion about the cost of living in the Garden State versus Manhattan?
that’s right. Our typical incentive is 35% plus a 2% to 4% kicker for diversity. And although there is $500,000 per person, [cap] Once you cross the line, all of that will be unlocked and further enhanced when you build a studio in New Jersey or rent space from someone who built a studio.
Related content: New Jersey: Where the Movies Began
I think Georgia is more competitive than New York. In terms of our large studios and the big, bold strokes we’re pursuing, Georgia is getting more attention than anywhere else right now. It seems like Georgia’s incentive program itself has become political. And that’s not the case in Jersey, and I don’t expect that to be the case.
But the tax break program could be controversial if voters feel it’s a gift to Hollywood. Are you confident that for every dollar New Jersey spends on manufacturing tax credits, it gets more than a dollar back?
Extremely confident. Here are some indicators. Mathematical arguments only look narrowly at what the country puts out and what comes back into the country’s coffers. And to me, that’s just part of the discussion. The real debate is what the state has done and what it has done for economic activity in New Jersey. Currently, for every dollar we spend on our streets, $6 to $8 is returned to the economy. This is a record price and could go even higher if a major studio partner like Netflix goes live. [with dedicated stages]. So this is a significant impact, immediate and far-reaching. And what I love about it is that it’s locally sourced.the [helping] Diners, dry cleaners, hotels, caterers. …One other measure of his that I’ll give you is the total economic activity of movies and television for the year before we got here. [in the state] It was mostly music videos and infomercials. It was about $65 million. Numbers for 2023 are not available, but it is believed to be around $800 million.
Netflix is moving to Fort Monmouth for studio space, and Lionsgate is helping develop a studio and retail complex in Newark. Are there any other large-scale soundstage or production infrastructure projects in the works?
Cineries in Jersey City has three soundstages. Looks like they’re planning to expand in Kearney as well. There’s a studio under construction in West Orange where we met with the principals, and then there’s a large, widely known studio called 1888 Studio that’s being set up in Bayonne, New Jersey. Hudson River across from New York City. These are the ones that are out there, but we’ve had conversations with other people who aren’t publicly known. There continues to be strong interest in both manufacturing and investing in brick-and-mortar stores. Observe the space, as they say.
What are the other pillars of New Jersey’s economy right now? What are the main drivers of your state’s economy?
We are an innovation economy. The traditional anchors are pharmaceuticals, bio and life sciences, technology and telecommunications, and increasingly fintech. We’ve been serving Wall Street’s middle and back offices for decades. Financial technology comes naturally to us, and we’ll be making big announcements about that in the coming weeks. Adult-use cannabis is big. Fintech’s cousin, sports betting, is big. Furthermore, movies and television are becoming more and more digital. And we’ve made it very public that we’re intentionally making big bets on generative artificial intelligence.announced a major joint venture with Princeton University [in December 2023].
With all of this going on, what is the next frontier for New Jersey in entertainment and other business areas?
More of the same thing. I have over a year and a half left in my term as governor, so I want to be as prepared as possible for the generations that follow. And I think we’re on track for a lot of really exciting things. So it’s a further development of the projects I mentioned, and the development of projects that aren’t on the radar screen yet, but are planting seeds. We continue to produce a lot of content in New Jersey. Let’s take an example. There is a movie called “Mirror by Marriage”. Ed Burns produced, directed, wrote and stars in the film, which is shot in Morristown. My wife went there. She knows the Burns family from another standpoint. They were moved and spoke emotionally about how they were treated. [by state and local officials during filming]. We have hired a new executive director for the Motion Picture and Television Commission. John Crowley, as you may know, is a veteran showrunner and producer himself. In some states, the film commissioner basically says, “Hey, welcome,” whatever the state is, and that’s the last time you see them. John’s endeavor is basically to provide his services as a high-end concierge. His job is to do the scouting, resolve any permitting issues, and continue to build the Film Ready NJ program in the community. clear brush. If you don’t mind.
Governor Murphy, let me ask you this: There has been some speculation about your political future. Do you have any ambitions to pursue another political position after your governorship?
I don’t have anything at the moment. But more importantly, I’m a recovering actor. That’s probably part of the reason I’m hooked. [boosting production in New Jersey]. It’s not just good for the economy and job creation. I’m a big fan of art. I used to act a lot in middle school, high school, and college. So I feel like I fit into this industry.
The next goal is clearly a stage?
[Laughs]. I wouldn’t say that either. There are no plans at this time.If I come up with something, I’ll definitely check it out. variety I know about that.
