Production Tax Incentives

Tyler Perry's success story demonstrates the power of understanding and leveraging ownership in the entertainment industry, combined with strategic location-based investments. His approach shows how recognizing regulatory changes and market opportunities can lead to significant business advantages.

Key Points:

• Strategic Location Investment:

  • Purchased 330 acres in Atlanta (2015) for $30M
  • Property is double the size of Warner Bros lot
  • Converted into a production base for major productions (e.g., Walking Dead, Black Panther)

• Tax Incentive Recognition:

  • Identified Georgia's 2008 tax law changes benefiting production companies
  • Saw dramatic industry growth in Georgia:
    • 2007: $67M in production spending
    • 2018: $2.9B in production spending

• Content Ownership Philosophy:

  • Consistently maintained ownership of his intellectual property
  • Recent deals include rights returning after term periods
    • Example: $150M ViacomCBS deal returns rights after 5 years

• Content Portfolio:

  • Accumulated significant owned content:
    • 22 films
    • Dozens of plays
    • 1,200 TV episodes
  • Major deals include:
    • $200M network deal for 90 episodes
    • $150M ViacomCBS agreement
    • Film franchise generating over $1B in sales ($290M personal earnings)

• Business Model Success:

  • Consistently prioritized ownership over immediate gains
  • Combined content creation with strategic infrastructure investment
  • Leveraged regulatory benefits to enhance business opportunities