MPA revenue increased in 2022, but the trade association’s deficit widened to $1.8 million

EXCLUSIVE: The Motion Picture Association showed a deficit of more than $1.8 million in 2022, even as revenues increased by more than 10%.

According to its most recent tax filings with the Internal Revenue Service, the MPA saw an increase in expenses due to salaries and other labor costs, as well as costs related to investigations and the Trusted Partner Network, an initiative to help film and television protect content.

According to the filing, MPA revenue increased to $74.5 million from $67.7 million a year ago, reflecting the collection of higher fees and contributions.

As studios and producers return to a regular release schedule due to Covid, the MPA’s film rating service collected $5.7 million, up from $4.3 million last year.

Membership fee revenue also rose to $58.7 million from $54.9 million last year. According to the MPA, there was a surplus that was carried over to this year compared to contributions that would otherwise have been collected.

The trade association also saw an increase in revenue from the Alliance for Creativity and Entertainment, an affiliated network of partners dedicated to combating global piracy, including legal action against infringing websites. This income, including contributions, increased from $5.78 million annually to $6.19 million in 2021.

The MPA’s member studios include Walt Disney Studios, Paramount Pictures, Sony Pictures Entertainment, Universal and 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, payroll costs for key executives and employees rose to $8.77 million from $7.4 million last year. Other labor costs, including salaries, also increased to $23.4 million from $21.4 million in 2021. The return to normality after the Covid pandemic was also reflected in travel costs, which rose to $1.1 million from $180,285 in 2021.

Research spending also increased to $6.0 million, up from $4.6 million the previous year.

As a 501 (c) 6 nonprofit organization, MPA and other professional associations are required to file public tax returns with the IRS each year and report items such as income, salaries and contributions to other organizations and political committees.

The tax forms showed an increase in grants and donations to various foundations and nonprofits. The largest sum, totaling $1 million, went to Carnegie Mellon University, which conducted research on piracy and technology. Other contributors include the Phoenix Center for Advanced Legal and Economic Public Policy Studies, which received $100,000; the Entertainment Industry College Outreach Forum, which received $272,500; and groups such as the National Hispanic Media Coalition, the Los Angeles Urban League, Freedom House, NAACP Empowerment Programs, the Center for Asian American Media, and ALLvanza.

Political donations included the Republican and Democratic Governors Associations, which each received $150,000.