Movies

Forget the celebrities. Meet L.A.’s small businesses that depend on the Oscars

BBG News

Over the past two decades, Mark’s Garden in Sherman Oaks has been responsible for creating the lush foliage and vibrant flower arrangements that grace the Oscars stage.

Securing projects during the awards season in Hollywood is crucial, especially since the industry usually experiences a sluggish start to the year during its first quarter. Plus, the publicity you receive when your flower arrangements are showcased at the most significant events of the year? Inevaluable.

According to owner Michael Uncapher, there’s something special about being linked to the florist who crafts designs for the Oscars – it’s an endorsement that has significantly boosted our reputation beyond what any advertising campaign could achieve.

According to a study conducted at the behest of the Academy of Motion Picture Arts and Sciences, it is calculated that the total economic effect of last year’s Oscars and associated activities amounted to approximately $134 million within Los Angeles County. This figure was derived by applying more modest assumptions for visitor numbers, hotel costs, and personal expenditure.

Previously, our organization disclosed that it generated approximately $147 million through “the Academy Awards and associated events,” with this figure encompassing its television broadcast agreement with ABC, a subsidiary of The Walt Disney Company.

Although the Oscars have faced a decline in television viewership over a prolonged period, it still significantly boosts businesses within the local area.

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While the Oscars have been experiencing falling TV ratings for quite some time now, it continues to play a crucial role in driving growth for nearby companies.

A multitude of small enterprises such as Mark’s Garden, limousine and automobile services, hotels, hair stylists, eateries, caterers, security firms, designers, jewelers, and others who derive income from the Oscars week, associated activities, events, and the broadcast itself (set to air on Sunday), stand to benefit.

Hollywood Inc.

In Los Angeles, you might not become renowned as a background actor, but with the right approach, you can earn a steady income from it.

In addition to small businesses, network ABC is poised to gain significantly from airing the show. On average, a 30-second advertisement during the broadcast in 2020 cost approximately $2.15 million, as reported by marketing data firm Kantar. The total ad revenue for that year was roughly $150 million.

David Offenberg, an associate professor at Loyola Marymount University, stated that it’s a massive undertaking, involving not only those on stage, but countless individuals working behind the scenes as well.

The 2024 Oscars show on ABC attracted an average of 19.5 million viewers last year, which was a 4% increase compared to the viewership in 2023, as indicated by Nielsen’s data. The intense competition between blockbuster nominees “Oppenheimer” and “Barbie” for the best picture award, coupled with Ryan Gosling’s highly anticipated performance of “I’m Just Ken,” sparked significant viewer interest in that particular year’s Oscars.

For three years straight, the Oscars broadcast in 2024 surpassed previous audience growth, following an all-time low of 10.5 million viewers in 2021. However, it didn’t quite reach the numbers of the approximately 30 million people who used to watch the award ceremony. Some experts predicting this year’s ratings might be lower due to several top contenders for best picture being less well-known.

However, since people’s TV watching patterns have shifted, it’s only logical that the way we measure the success of the Oscars should also adapt, according to Academy Chief Executive Bill Kramer.

This year marks the debut of the live streaming of the show on Hulu, reaching a growing global fanbase in over 200 countries. Additionally, the academy noted a significant expansion in their social media influence.

In the past, ratings during primetime on traditional TV have been the measure of our success here in the U.S.,” Kramer noted, “but we connect with people through numerous channels. We need to consider our impact across various platforms.

Over a thousand set builders, lighting technicians, and other production crew members are hard at work on the Hollywood lots, constructing sets for the television program, fine-tuning the lighting, and laying out the red carpet, as stated.

During a Zoom call held earlier this week from a hotel room at Ovation Hollywood, Kramer expressed that the show not only bolsters the employment of direct workers and local businesses thriving from its presence in Los Angeles, but also contributes significantly to the broader entertainment industry.

In light of the recent wildfires in Southern California, a crucial factor was taken into account by the academy when deciding on the direction for the upcoming glamorous award ceremony.

Hollywood Inc.

As a movie enthusiast based in Southern California, I anticipate that the upcoming L.A. wildfires could lead to increased expenses for both individuals and production companies involved in filmmaking and TV production here.

Despite some individuals like “Hacks” actress Jean Smart advocating for the cancellation or non-broadcasting of the Oscars, Kramer mentioned that the academy proceeded with their plans following discussions with their board of governors, academy members, and local officials. Notably, they postponed the announcement of nominations and adjusted other related events.

Kramer, who has been at the helm since 2022, noted a significant influence on business within our sector. Given the intricate challenges faced by this industry over the past few years, including COVID-19 and strikes, we felt it essential to maintain a positive atmosphere around the Oscars and our field,” said Kramer.

It was crucial for Uncapher from Mark’s Garden to ensure the smooth running of the Oscars, given that numerous events in January had been canceled due to the Palisades and Eaton fires. Moreover, he is still recuperating from an arson attack on his business two years ago which has left him operating temporarily until later this year. He mentioned this himself.

“We have to continue on and keep the economy moving,” Uncapher said.

At the Oscars, Distinctive Assets, a marketing company that creates gift bags for acting and directing nominees, consistently sees reliable income.

For over two decades now, I’ve been part of this dynamic Miracle Mile team, pioneering connections between brands and influential celebrities. Every year, we assemble our special “Everyone Wins” gift bags that have become a cherished tradition.

This year, the goody bags contain merchandise and deals from 61 different brands, featuring a four-night vacation at Maldives resorts, beauty and hair care items from L’Oreal, as well as ten one-year subscriptions to a disaster recovery assistance service that can be given to anyone.

The bags, unrelated to the Oscars or the academy, are sent to nominees before the broadcast. The founder of the company, Lash Fary, refused to reveal financial details but stated that this campaign is meeting expectations and might even exceed them, making it a successful promotion according to his standards.

One of the two major happenings that Distinctive Assets is involved with during the first quarter is known as the “Everyone Wins” swag bag. The other event is the Grammy Awards.

Fary commented, “This awards show is like the Super Bowl for movies.” He added that companies aim to participate in it because of its prestige.

Previously, Viola Davis has been spotted gracing a resort given to her as a gift, and Ron Howard held his son’s wedding at a resort that had been advertised within a bag. At one point, Amy Adams was pictured donning a “Everyone Wins” package T-shirt on her way to the gym.

Brands often invest in such high-profile connections with celebrities, as Fary mentioned, for the immediate prestige or allure that an event like Oscar week brings.

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2025-02-28 14:34

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