DE C E M B E R 2 0 1 1 (Continued on Page 6) Game Makers’ Big Tax Breaks According to the Joint Committee on Taxation, in 2010, the United States federal government handed out $123 billion in tax incentives to various corporations. Among the companies that took advantage of the U.S. government tax incentives were those that manufacture video games. In fact, video game production is now one of the most highly subsidized businesses in the U.S. due to these very same tax incentives, because companies that develop video games have their hands in a number of cookie jars: software development, the entertainment industry and online retailing, making them eligible for combined tax incentives. Even though the U.S. video game industry didn’t exist until the early 1970s, in 1954, Congress rewrote the tax code to include a taxbreak that allowed companies to deduct immediately all laboratorybased research and experimentation costs. The government expanded the tax break in 1969 so that corporations could also deduct the cost of software development. These tax breaks now apply to video game makers, especially since most of their costs fall under the category of software development. Plus, in 1981, the U.S. Congress created an additional credit intended for companies that increased their research and development activities. Thus, even though the type of research and development implemented by video game developers rarely benefits anyone besides the company itself, these companies still qualify for the tax deduction. And tax incentives are spreading. Currently, over 20 states dangle tax breaks in front of video game manufacturers to encourage them to take root within the state. Like the U.S., Canada is offering big subsidies, too, hoping to lure video game companies over the U.S.-Canadian border. Montreal offers these companies a tax credit equal to 37.5 percent of their payroll. Reportedly, Ontario provided one video game company a tax incentive of over C$321,000 to relocate from the U.S. More TV Sets In Polish HH According to the results of a survey by London-based TGI Millward Brown, the number of television sets in Polish homes is growing. The survey indicates that over five million Polish households (HH) have at least two television sets. This translates to 38 percent of all households, or 5.3 million households, with more than one television. Additionally, one million households in Poland have three or more TVs, a figure that has nearly doubled in the past 10 years. In 2001, there were only 700,000 Polish homes with three or more TV sets. Now, the number has climbed to 1,207,080 households. Not only is the number of TV sets in Polish HH growing, but the size of TV screens is increasing as well. More than four million households have sets with panels that are 30 inches (76.2 cm) or larger, and according to Nielsen Audience Measurement Polska data for 2010, 33 percent of all TV sets in Poland are flat LCD TVs. It is also significant that TVs are now being kept in rooms other than the living room, as more than one million households have additional TV sets located in bedrooms and kitchens. Argentina’s Second FyMTI The second iteration of the International TV Fiction Festival and Market, or the Festival yMercadodeTV-Ficción Internacional (FyMTI) was held November 25-27 at the InterContinental Hotel Nordelta, Tigre, Buenos Aires, Argentina. Organized by Sergio Crescenzi and Ruben Nieves, owners of FyMTI, an active member of Argentinean Audiovisual Exporters Chamber, there are three main elements to the event: The Festival (the Official Competition, premieres and launches, tributes, etc.), the Market (business meetings and workshops) and the Forum (conferences, debates, master classes and presentations). The event is dedicated to broadcast TV, pay-TV, digital TV, web TV and IPTV content, formats and production services, and offers audiovisual screenings, business meetings, a forum and awards ceremony. V I D E O • A G E 4
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