EXCLUSIVE: The Motion Picture Association posted a deficit of more than $1.8 million in 2022, while its revenue rose by more than 10%.
According to the latest tax filings to the Internal Revenue Service, the MPA saw an increase in expenses due to salaries and other labor costs, as well as costs associated with investigations and the Trusted Partner Network, a film and television content protection initiative.
According to the filing, MPA revenue rose to $74.5 million, from $67.7 million a year earlier, reflecting collection an increased amount of fees and dues collected.
With studios and producers starting to back to a regular schedule of releases due to Covid, the MPA’s film rating service collected $5.7 million, from $4.3 million a year earlier.
Revenue from membership dues also increased to $58.7 million, from $54.9 million a year earlier. There had been a surplus that was carried over to that year, offsetting the dues that otherwise would be collected, per the MPA.
The trade association also saw a boost in revenue from the Alliance for Creativity and Entertainment, an affiliated network of member companies to fight worldwide piracy, including legal challenges against infringing sites. That revenue, which includes dues, increased to $6.19 million, from $5.78 million a in 2021.
The MPA’s member studios are Walt Disney Studios, Paramount Pictures, Sony Pictures Entertainment, Universal, Warner Bros. Entertainment and Netflix.
MPA Chairman Charles Rivkin’s compensation package rose to $4.1 million, including $2.3 million in base salary, $1.8 million in bonuses and $43,000 in other compensation. His compensation package was $3.3 million in 2021.
Overall, salary expenses for key officers and employees rose to $8.77 million, from $7.4 million a year earlier. Other labor costs, including salaries and wages, also increased to $23.4 million, from $21.4 million in 2021. The return to normal following the Covid pandemic also was reflected in travel costs, which rose to $1.1 million, from $180,285 in 2021.
Expenses for investigations also increased to $6.0 million, from $4.6 million a year earlier.
As a 501(c)6 nonprofit, the MPA and other trade associations are required to make public filings with the IRS each year, listing such things as revenue, salaries and contributions to other organizations and political committees.
The tax forms showed an increase in grants and donations to a variety of foundations and non profits. The largest, totaling $1 million, was to Carnegie Mellon University, which has been doing research on piracy and technology. Other contributions included the Phoenix Center for Advanced Legal and Economic Public Policy Studies, which received $100,000; the Entertainment Industry College Outreach Forum, which was given $272,500; and groups including the National Hispanic Media Coalition, the Los Angeles Urban League, Freedom House, NAACP Empowerment Programs, the Center for Asian American Media and ALLvanza.
Political contributions included the Republican and Democratic Governors association, which each received $150,000.