Movies are big business. In the United States alone, studios pulled in a whopping $8.72 billion in box office revenue last year. Despite these healthy returns, movie companies receive hefty subsidies from state governments countrywide. The reason these subsidies were created and continue to exist provides a powerful lesson in how governments function and the inescapable dilemmas faced by all policymakers.
History and Mechanics of Film Subsidies
According to The New York Times, a total of 38 states offered film subsidies in 2024, five of whom started doing so after 2022. While fewer than the 44 states that offered such programs in 2009, it still means that about 75 percent of states offer such subsidies. And this widespread adoption comes within a mere 32 years of Louisiana launching the first such program.
Zev van Zanten
Author
Zev van Zanten is a contributor to the American Institute for Economic Research (AIER).
