FOOTNOTES
1 Professional Business Services in the New York City Economy (NY: Citizens Budget Commission, 1995).
2 Banking and legal services declined in employment; securities, accounting, and management consulting increased. Data from New York State Department of Labor, ES202 series for first three quarters of 1997.
3
The 2nd New York New Media Industry Survey (October 1997) was sponsored by the New York Media Association, the New York City Economic Development Corporation, and the Empire State Development Corporation (New York State). The report was prepared by Coopers & Lybrand.4
Measurement of the media and communications sector is shaped by constraints of available data. The most comprehensive and consistent source for information on employment and payrolls is collected by the U.S. Department of Labor, Bureau of Labor Statistics, according to its Standard Industrial Classification (SIC) of firms with five or more employees; hence firms with fewer employees are not reflected in the data presented. Data for some industries including employment in small firms are available from three separate surveys conducted by the U.S. Department of Commerce, Bureau of the Census, covering parts of the total economy. Data from these surveys indicate small firms (one to four employees) compose about 4.7 percent of national total employment for all of the industries included in Table 1 except pre-recorded records and tapes, public relations, and commercial research, which are not covered in detail by the surveys. Using the 4.7 percent figure, an estimated 185,442 workers could be added to the employment figure in Table 1.5
National private sector totals from U.S. Department of Labor, Bureau of Labor Statistics, ES-202 series.6
U.S. Department of Commerce, Bureau of the Census, Statistical Abstract of the United States, 1997 (DC: U.S. Government Printing Office, <http://www.census.gov>, January 1998), and Publisher’s Weekly.7
Newspaper Association of America, Facts About Newspapers, 1998, <http://www.naa.org/info/Facts/facts2.html#ASBRDSN> (July 1998).8
U.S. Department of Commerce, Bureau of the Census, Statistical Abstract of the United States, op. cit.9
Data supplied by the Magazine Publishers Association.10
U.S. Department of Commerce, op. cit.11
U.S. Department of Commerce, Bureau of the Census, 1997 Annual Survey of Manufacturers.12 Figures are based on 1992 expenses as provided by the Association of American Publishers.
13 Doreen Carvajal, "A Pot of Gold for Textbook Publishers," The New York Times, May 26, 1998.
14
Associated Press, London, "Pearson Revises Simon & Schuster Deal," The New York Times, July 4, 1998.15
Steve Coll, The Deal of the Century: The Breakup of AT&T (NY: Athenaeum, 1986).16 U.S. Department of Commerce, Bureau of the Census, 1997 Annual Survey of Communication Services.
17
"FCC Wireless Licenses Sell for $578 Million," The New York Times, March 26, 1998.18
Federal Communications Commission, Statistics of Communications Common Carriers, 1996-1997 edition, <http://www.fcc.gov>, Table 2.9 (January 1998).19
See <http://www.clec.com>.20
Early history is from Kenneth T. Jackson, editor, The Encyclopedia of New York City (CT: Yale University Press, 1995).21
Motion Picture Association of America, Inc., "U.S. Economic Review, 1997 Edition," <http://www.MPAA.org>.22
The Recording Industry Association of America, "1997 Yearend Statistics," <http://www.RIAA.com>.23
This description relies on Harold Vogel, Entertainment Industry Economics (NY: Cambridge University Press, 1994). See especially pp. 32-34, 55 and 59.24
Data on sound stages and back lots from Linda Lee, "My Kingdom for a Sound Stage," The New York Times, January 20, 1997.25
Revenue figures from the Veronis, Suhler & Associates Communications Industry Report, (NY: Veronis, Suhler & Associates, November 1997).26
Geraldine Fabrikant, "MGM Owner Said to Offer $300 Million to Buy Orion," The New York Times, April 19, 1997.27
Motion Picture Association of America, op. cit.28
Vogel, op. cit., p. 51. This figure is below the $30.9 billion in revenue for the major studios as indicated separately above. The figures are from different sources, but the difference is due partly to the inclusion of revenue from entertainment sources other than motion pictures in the separate firm totals.29
Accurate data for all employees in the industry are not available since employees of recording studios and music distribution centers (SIC 7389) and music arrangers (SIC 8999) are in SIC codes which include employees from a number of non-related industries not classified elsewhere. SIC 7389 (Business Services Not Elsewhere Classified) includes over 100 different occupations ranging from automotive repossession services to swimming pool cleaning. Music arrangers and songwriters are grouped in SIC 8999 (Services Not Elsewhere Classified) with 30 other occupations ranging from actuaries to weather forecasters.30
The Recording Industry Association of America, op. cit.31
Veronis, Suhler & Associates, op. cit., pp. 180-181. Major distributor’s labels from Pollstar, Fall 1996, p. 89.32
Geraldine Fabrikant, "$10.6 Billion Seagram Deal for Polygram," The New York Times, May 22, 1998.33
Data from International Data Corporation; personal communication.34
The history of radio and television is drawn from the following sources: Joseph Dominick, Barry Sherman, and Gary Copeland, Broadcasting/Cable and Beyond: An Introduction to Modern Electronic Media (NY: McGraw-Hill, 1990); Kenneth T. Jackson, The Encyclopedia of New York City (CT: Yale University Press, 1995).35
Rules governing retransmission rights and copyright fees are in place for satellite broadcast service in markets underserved by broadcast television. Congress is presently considering changes in the law with respect to the level of copyright fees and with respect to the definition of underserved areas. In addition, it is considering whether local programs can be retransmitted when a market is not underserved and whether the "must carry" rule (that is, whether a provider is required to carry all local stations that wish to be carried) should be phased in. New technology is emerging to make such a "must carry" rule feasible. "Must carry," retransmission, and copyright regulations are in place for cable operators (Arthur Goodkind, partner, Koteen & Naftalin, Washington, DC).36
Data from Television & Cable Factbook, 1996 (DC: Television Digest Inc., 1996).37
Data from U.S. Department of Commerce, Bureau of the Census, 1997 Annual Survey of Communication Services.38
Federal Communications Commission, Audio Services Division, Broadcast Station Totals, <http://www.fcc.gov/mmb/asd/totals/index.html> (March 31, 1998).39
Data from U.S. Department of Commerce, Bureau of the Census, 1997 Annual Survey of Communication Services.40
Federal Communications Commission, Audio Services Division, op. cit.41
Data in this paragraph from U.S. Department of Commerce, Bureau of the Census, 1997 Annual Survey of Communication Services.42
Courtney Kane, "Advertising," The New York Times, April 22, 1997.43
U.S. Department of Commerce, Bureau of the Census, Statistical Abstract of the United States, 1997.44
U.S. Department of Commerce, Bureau of the Census, 1997 Annual Survey of Service Industries.45
U.S. Department of Commerce, "The Emerging Digital Economy," May 1998, pp. 7 and 8.46
Ibid., pp. A4-5 and A5-9.47
Ibid., pp. A4-23.48
Ibid., pp. A4-32.49
"Top 150 Companies," PC Magazine, July 1996.50
U.S. Department of Labor, Bureau of Labor Statistics, ES-202 series.51
Ibid.52
"Set-top Boxing," The Economist, November 29, 1997, p. 67. The story is datelined in New York and Seattle, indicating the geographic dimensions of such convergence.53
See Richard Gershon, The Transnational Media Corporation (NJ: Lawrence Erlbaum Associates, 1997), especially chapters 8-12.54
Martin Mayer, Whatever Happened to Madison Avenue? Advertising in the ‘90s (MA: Little, Brown, & Co., 1991).55
Marketing research data from Advertising Age, May 25, 1998. Public relations firm data from J.R. O’Dwyer Co.56
Mayer, op. cit.57
Doreen Carvajal, "German Media Giant Will Buy Random House For $1.4 Billion," The New York Times, March 24, 1998, and "Americans Buy Books, Foreigners Buy Publishers," The New York Times, August 10, 1997.58
Goldman Sachs, "Movie Industry Update-1997," May 28, 1997. Theatrical revenues include box office receipts, home video, pay-per-view, television, and other. Home video accounted for better than half of total worldwide revenues in 1996, while box-office receipts accounted for just over one quarter.59
Veronis, Suhler & Associates Industry Report (NY: Veronis, Suhler & Associates, November 1996).60
Data from Walt Disney Company, 10K filing with the U.S. Securities and Exchange Commission; Time Warner Inc., Annual Report, 1996.61
Federal Communications Commission, Statistics of Communications Common Carriers, 1996-1997 edition.62
International revenues from 1996 10K filings with the U.S. Securities and Exchange Commission.63
See note 5 above. Applying the U.S. percentages to New York City employment by SIC results in an estimate of 11,439 workers, adding 4.9 percent to the sector total in Table 18.64
The percentage of total national employment in firms with 1-4 employees is not available because the Census of Industries comprises three different data sets, and only two provide total employment in firms with 1-4 employees. The Census of Transportation, Communication, and Utilities (which includes telephones, radio, television, and cable) does not provide total employment in firms with 1-4 employees. The Census of Manufacturers (which includes printing and publishing) and Census of Service Industries (which includes the remainder of the media sector in question) provide total U.S. employment in firms with 1-4 employees. For manufacturing, total employment in small firms represents 1.3 percent of total employment. For the service industries, employment in small firms represents 9.6 percent of the total. For the large communications industries, employment in small firms ranges from 0.4 percent for television to 2.3 percent for cable.65
Coopers and Lybrand, op. cit., p.48.66
This point is developed in Jason Bram and Mike DeMott, "New York City’s New Media Boom: Real or Virtual," Current Issues in Economics and Finance (Federal Reserve Bank of New York, October 1998).67
These figures should be interpreted cautiously because they do not include parts of the recorded music industry (refer to footnote 30). Most notably, the Department of Labor does not report separately employees of an estimated 1,680 music recording studios in New York City. See "The Entertainment Arts Industry, Part I: Recorded Sound," (NY: Exploring the Metropolis, Inc., April 24, 1992).68
The Industrial and Commercial Incentives Board offers benefit packages that can include low-interest Industrial Development Authority (IDA) loans as well as a variety of tax incentives, including sales tax and property tax reductions, the Mortgage Recording Tax waiver, and reduced taxes from the purchase of energy from the New York City Public Utility Service. See New York City Economic Development Corporation, Local Law 69 Report, Vol. I, January 31, 1998, page 4.69
New York City Economic Development Corporation, Local Law 69 Report, Vols. I and II, January 31, 1998. In addition to assistance from New York City, firms also may have received substantial financial benefits from New York State.70
U.S. Department of Labor, Bureau of Labor Statistics, and New York State Department of Labor, Division of Research and Statistics, ES-202 series.71
Ibid.72
"The Entertainment Arts Industry in New York, Part 3: The Film and Television Industry" (NY: Exploring the Metropolis, Inc., December 1997), p. 75.73
See Annalee Saxenian, Regional Advantage (MA: Harvard University Press, 1994) for an analysis of differences between Boston’s Route 128 and the Silicon Valley.74
Table 25 shows rates of change to 1997 for New York City and to 1996 for the United States. The comparable 1997 data were not available for the United States. Calculations of precisely comparable rates to 1996 for New York City show essentially the same relative results.75
Ken Auletta, The Highwaymen: Warriors of the Information Superhighway (NY: Random House, 1997).76
Budget 2000: Tax Policy (NY: CBC, December 1996).77
New York State Department of Taxation and Finance, "Report on Telecommunication Taxes," 1997.78
New York City Economic Development Corporation, Local Law 69 Report, Vols. I and II, January 31, 1998. The following firms received some form of financial assistance and/or low-interest loans: ABC, CBS, NBC, Bertelsmann, Inc., Kenner Printing, Newsweek, News America Publishing, and Scholastic, Inc. Firms benefiting only from EDC leases of City-owned property: Cellular Vision of New York, National Antennae Service, and The New York Times. The figures reported above do not include other economic incentives that may have been provided by New York State. The City is required to report on only those firms receiving at least $250,000 in assistance or loans, or a sale or lease of property estimated to retain or create at least 25 jobs. The 1998 report lists 304 projects. News America received an additional $24.4 million in tax breaks, grants and low-cost electricity in July 1998. This total includes a $12.9 million cash grant from the Empire State Development Corporation. See Charles V. Bagli, "Post Gets $24.4 Million in Incentives to Stay in New York," The New York Times, July 21, 1998.79
The direct effects are the additional tax revenues generated by the firm. The indirect effects are the additional tax revenues generated by the employees of the firm from their incomes and the additional tax revenues generated by firms that supply the ones receiving city assistance. Projecting forward through FY2004 the cumulative assistance totals $64.5 million and the cumulative net economic gain is said to reach $1.65 billion. (These totals are not discounted either forward or backward to FY1997.)80
See Reforming Residential Rent Regulation (NY: CBC, February 1991).81
See Budget 2000 Project, Public Education (NY: CBC, December 1996) and Richard Delaney, School Buildings for the Next Century: An Affordable Strategy for Repairing and Modernizing New York City’s School Facilities (NY: CBC, September 1996).82
Computer Associates International, Inc., headquartered in Islandia, New York, on Long Island, does have an established relationship with the State University of New York at Stony Brook. It provides financial support for their programs and recruits actively. Some Computer Associates International, Inc. personnel serve as adjunct faculty.