New Jersey, Netflix, and Everything In-between

Remi C. Leibovic

School of Communication and Information Technology, Rutgers University New Brunswick

Digital Media Research

Professor John V. Pavlik, PhD

May 8th, 2022

Introduction

Fort Monmouth New Jersey is to be the new site of Netflix’s latest venture, a new film

studio. However, the film industry is not new to the state of New Jersey, as it is actually where

film started. Fort Lee New Jersey claims itself to be America’s first Hollywood and Thomas

Edison created the Kinetoscope in the town of West Orange New Jersey. In fact, Film was a

thriving industry in the state until Thomas Edison’s legal patents surrounding the technology

used to make film, forcing independent filmmakers to move out west to California. However,

Television loves New Jersey and filming in the state. Films and TV shows under governor Phil

Murphy have been approved for five years of Film Tax Credits until 2028. The tax credits are an

incentive by the state government to attract new productions to New Jersey. Also, while there is

no set price on just how much Netflix has spent on acquiring its new Fort Monmouth site, it is

speculated that it is in the millions.

With the new studio comes an opportunity for growth for the local community and local

economy. In addition, much has changed since Thomas Edison’s time and New Jersey is now a

multicultural and diverse state. This fact makes it the perfect environment for Netflix, a company

that has recently invested in forgien shows and films. The return of the film industry heralds a

historic cultural and economic shift for the state of New Jersey, where opportunity to reconcile

from stifling patents to a new era of film and streaming.

Research

To begin with, the origins of film start with Thomas Edison. Tim Dirks (2014) states in

his historical online article, “The Birth of US Cinema: Thomas Edison and William K.L.

Dickson” that it was in West Orange New Jersey where the world’s first movie studio was built

and named, “The Black Maria”. Thomas Edison and his assistant William K.L. Dickson

considered the film studio a laboratory, where they experimented on new ways to capture motion

images. It was on August 31st 1897 that Edison received his patents for the Kinetoscope (2014).

These patents would lead to a gatekept state, a stifled group of independent filmmakers, and New

Jersey being turned into a state where the film industry could not function without Edison’s

approval.

Only the wealthiest of filmmakers or investors could at the time afford to pay Edison to

film in New Jersey. However, because the motion picture industry was still so new at the time

there were many small filmmakers based in New Jersey. Which made them look quite literally to

the western United States, California. The book, “An Empire of Their Own: How the Jews

Invented Hollywood” by Neal Gabler discusses this migration from the east coast to the west.

The Jewish people that created Hollywood were immigrants and they had their ambitions with

what was told to them to be the American dream. (1989) These filmmakers and studio builders

would set the standards of American Values through film. Also, Gabler discusses how the state

of California had less restrictions for filming and that Edison’s patents did not have that far a

reach. (1989) The Jewish people who founded Hollywood wanted to be apart of America and it’s

ideas. The idea of going from rags to riches or that anything is possible in America, was what

they were striving for. They hailed from European backgrounds in where after centuries of

legally systematic oppression due to the influence of the Catholic Church. Edison’s patents and

legal loopholes were nothing new to them. They all moved west with a few founding members

from different societal backgrounds and established family friendly neighborhoods. According to

Gabler (1989) they wanted to find and establish their place in America.

Since the founding of Hollywood California, the film industry in New Jersey has not

been the same. In fact, this Netflix deal is the biggest that the state has ever permitted. Over a

century later, film is being allowed into New Jersey. The average New Jersian might not know

but they help pay the movie or Television studio’s bills when they pay their yearly taxes.

Samantha Marcus (2020) of N.J.com, the state’s leading online newspaper, breaks down what the

Governor and his Democratic legislature had to say about the change. In her article, “Hollywood

welcome in N.J. as Murphy approves 5 years of film tax credits”. Until 2028 the State of NJ is

looking at what could possibly be a golden age of opportunity surrounding film, a renaissance for

the state. In fact, Marcus states “Phil Murphy and The law allows film productions to apply for

savings of 30 percent on their expenses from 2019 to 2023 if they film in the upper half of the

state. It allows them up to 35 percent if they choose to film in the counties of Atlantic, Burlington,

Camden, Cape May, Cumberland, Gloucester, Mercer or Salem.” Compared to the rest of the

State, South Jersey receives less funding. A 2018 Rutgers Study though the Senator Walter Rand

Institute and assistant Professor Michael S. Hayes titled, “Our Piece of the Pie: The Distribution

of State Funds to Municipalities Across NJ Regions” shows evidence of just how poorly state

funds are distributed to the counties that Marcus (2020) stated in her quote. In fact, according to

the study by Prof. Hayes (2018) states , “Interestingly, even after controlling for population, the

average municipality in South NJ still has 37% lower property values compared to the average

nonSouth NJ municipality. This implies that the average municipality in South NJ finds it

relatively more difficult to raise the same level of property tax revenue per resident compared to

non-South NJ municipalities, even if they set the same property tax rate. Therefore, it’s possible

that South NJ municipalities may set higher property tax rates compared to municipalities in

non-South NJ to compensate for lower property tax bases.” Since this study was published in

2018, the world has changed. New Jersey was one of the first states to lock down due to the

coronavirus pandemic. Already financially strained counties and towns now face even more

pressure. An economic growth that could be brought by Netflix and the film industry is what

could help these South Jersey counties. While the Fort Monmouth site is not located in what is

considered to be a South New Jersey County, it is located directly above Ocean County in

Monmouth County. While Monmouth County will experience the direct economic boom that is

predicted to occur, Ocean County and the surrounding counties can craft an action plan on how

to take advantage of the oncoming production site. Therefore, when the studio is in the process

of being built and actually is set up, there can be an action plan established for local

municipalities.

Furthermore it is now the age of binge watching, streaming, and more yearly blockbuster

movies than ever before. The film industry has changed, especially with the 2020 Coronavirus

Pandemic as movie theaters across the world were forced to shut down. Now movies can be

delivered to the big living room screen instead of the one at the theater. In addition, Marucs

(2020) also states that, “Digital companies can apply for 20 percent, or 25 percent if they choose

south Jersey. Productions are also eligible for diversity tax credits if they take steps to recruit

and hire women and minorities.” Which is where South Jersey begins to shine, especially

Camden and Gloucester counties. Bill Duhart of NJ.com (2022) article, “2 N.J. counties make

pitch for more film, TV productions using state tax credits” discusses their plan in doing so. The

South Jersey Film Office Cooperative has been working hard to make southern NJ the

destination for filmmakers and television series. From the urban landscape of Camden to the

crashing waves in Cape May, the South Jersey Film Office Cooperative believes that southern NJ

has every landscape and background scene that a filmmaker could want (2022). According to

Duhart, the Cooperative, Camden and Gloucester counties are teaming up together to make it

happen.

However, filmmakers need to tread lightly on their depictions of New Jersey. As the NJ

government has quite literally pulled the plug on productions before for depicting New Jersey in

a bad light. The infamous MTV reality TV series, “The Jersey Shore” struck a nerve with then

Governor Chris Christie. According to a 2011 published NJ.com article, “No sequel: Christie

vetoes film production tax credits” The Governor and his constituents were not too pleased with

the way that the spray tanned cast members were depicting the state. The online article by Ted

Sherman (2016) states, “Gov. Chris Christie -- who killed a $420,000 state tax credit in 2011 for

the hit MTV show "Jersey Shore," arguing it tarnished the state's reputation -- has vetoed new

efforts to revive incentives for film production in New Jersey. A push in the legislature to renew

the recently expired tax credit program were rejected this week by the governor, who has vetoed

previous bills that looked to bring back the production incentives.” In essence, they were taxed

and since then Television has been wary of the way that it has shown the Garden State.

Monmouth County is not on the list of the previously stated counties that will include tax

benefits. However, there is a benefit to that, the benefit being that Netflix is paying all of it. As a

company, Netflix can be seen as an innovative and creative company. From streaming to

investing in shows there is a method to what may appear to stakeholders as madness. In fact,

Netflix recently saw a potential niche market for streaming in South Korea. Saheli Roy

Choudhury of CNBC (2021) states in her article titled, “Netflix to spend $500 million in South

Korea this year to develop new content” that the company had spent $700 million to expand its

Korean content. This bold move was based on market and societal research. Which is why, this

move to New Jersey as a revival to the film industry is no surprise to those who know Netflix.

There is no exact number when it comes to the price tag of the Fort Monmouth site,

however according to the NJBIA website (2021) article, “Reports: Netflix Proposes Huge TV

and Film Production Facility for Fort Monmouth”, over a million dollars has been invested in

the acquiring of the site. The article states, “Bids for the site, which the Fort Monmouth

Economic Revitalization Authority (FMERA) has previously appraised at $54 million, are due on

Jan. 12, 2022.” With the price of the Taxes, patents, and amounting to well over a million

dollars, Netflix is all in. Yet this is crucial as the area surrounding Fort Monmouth could

potentially flourish from the building of the studio. Local businesses could cater to the film

industry boom with restaurants, lodgings, and other necessities that it needs to grow.

Also, Hollywood will not be Fort Monmouth’s only competitor because Steiner Studios

in Brooklyn is only a state line away. New Jersey has been described in the past as the farmland

between New York City and Philadelphia. Both are major metropolitan cities that are within an

hour or so drive of Fort Monmouth. As mentioned earlier in this paper with Duhart’s article

(2022) the state offers a mix of natural backgrounds and landscapes for on site filming. While

building out a set in Fort Monmouth might be costly, Netflix can take advantage of the natural

scenery in Central and South Jersey. There is an endless amount of potential but if Netflix will

take advantage of that remains to be seen.

While no one currently knows how this Netflix studio in Fort Monmouth will play out for

the local community and overall New Jersey economy, looking at how Steiner Studios has

shaped Brooklyn helps. Steiner Studios opened in the Brooklyn Naval yard in 2004, which

provided New York City a Hollywood scale movie production space. In a 2020 DEADLINE

article writer Jill Goldsmith states, “Steiner, which operates the extensive Brooklyn Navy Yard

production campus Steiner Studios, said it expects to support 2,200 jobs upon project

completion, including set builders, electricians, scenic artists, grips, propmasters, set dressers,

hair and make-up artists, and costume designers. The investment is also expected to create at

least 1,800 temporary construction jobs and comes with a goal of 25% participation rate by

Minority and Women Owned Business Enterprises.” These facts about Steiner Studios can

forecast a positive outcome for Netflix in New Jersey. Netflix should do its best to outreach to

local businesses through community organizations. Until construction of the Fort Monmouth site

begins, there is no telling how Netflix plans to conduct business in the local area. Yes, New

Jersians can look at Steiner in Brooklyn and Netflix’s own expansion in South Korea, but until

there is a public plan that is showcased, locals will be kept in the dark.

Conclusion

There is overall excitement that is surrounding this project taking place in New Jersey.

However until more public information is disclosed New Jersians can only predict what will be

the future of this studio. However one thing is for certain, Southern New Jersey Counties want

the film industry to utilize their natural landscapes and scenery. Also, South Jersey has been

statistically left out of budgets and funding but with Ocean county being located next to the Fort

Monmouth Netflix site, there is hope for a growth in the local economy. Perhaps this is just the

beginning of Netflix’s expansion into the state. Progress can only be measured over time, and

from Edison’s up to 2022 a lot has changed in terms of legalities. Netflix is a company that is

willing to pay the price of bringing film back into New Jersey. Local governments, local

businesses, film enthusiasts, and filmmakers just need to make action plans to take advantage of

the Fort Monmouth site. As soon as construction begins on the physical site, so too should it

begin in the local communities of how to take advantage of this new incoming economic period

of growth. That way a corporation and the state government are not the only ones benefiting

from the new studio.

Abstract

The Movie streaming company Netflix has purchased a property in Fort Monmouth, New Jersey.

The historic 289 acre military base now will be a film and television production studio for

Netflix. New Jersey and the film industry have a complicated past, with the first film studio in

the world being built in West Orange NJ to filmmakers now facing taxes and patents. It is

specifically because of the legal barriers that the film industry moved out west to Hollywood

California. Yet, the state of New Jersey has changed its views on the film industry and is in fact

working to establish tax relief for the industry if they film/produce in certain NJ counties.

Overall, there is much to gain with this new endeavor and movie studio. This research poses to

highlight how South NJ counties and New Jersey as a whole could benefit from this new deal

with Netflix. It also examines how Netflix is not shy about price tags as it has spent millions in

order to secure loyal fan bases overseas. Also, from a historic standpoint this research shows that

a movie studio can bring a lot of money to a state and build local communities.

Works Cited:

Duhart, B. (2022, April 05). 2 N.J. counties make pitch for more film, TV productions using

State tax credits. Retrieved May 8, 2022, from

https://www.nj.com/news/2022/04/2-nj-counties-make-pitch-for-more-film-tv-productions-using

-state-tax-credits.html

Dirks, T. (2014). The History of Film The Pre-1920s Early Cinematic Origins and the Infancy of

Film Part 1. Retrieved May 8, 2022, from

https://web.archive.org/web/20140219133828/http://www.filmsite.org/pre20sintro.html

Gabler, N. (1998). An empire of their own: How the jews invented hollywood. New York, New

York: Anchor Books a Division of Random House.

Hayes, M. S., Ph.D. (2018, April 5). Our Piece of the Pie (Rep.). Retrieved May 8, 2022, from

The Senator Walter Rand Institute website:

https://rand.camden.rutgers.edu/files/Our-Piece-of-the-Pie_Full-Report.pdf

Marcus, S. (2020, January 22). Hollywood welcome in N.J. as Murphy approves 5 years of film

tax credits. Retrieved May 8, 2022, from

https://www.nj.com/politics/2020/01/hollywood-welcome-in-nj-as-murphy-approves-5-years-offilm-

tax-credits.html

Reports: Netflix proposes huge TV and film production facility for Fort Monmouth. (2021,

October 27). Retrieved May, 2022, from

https://njbia.org/reports-netflix-proposes-huge-tv-and-film-production-facility-for-fort-monmo

Sahelirc, S. R. (2021, February 25). Netflix to spend $500 million in South Korea this year to

develop new content. Retrieved May 8, 2022, from

https://www.cnbc.com/2021/02/25/netflix-nflx-to-spend-500-million-in-south-korea-in-2021.html

Sherman, T. (2016, January 12). No sequel: Christie Vetoes Film Production Tax Credits.

Retrieved May 8, 2022, from

https://www.nj.com/politics/2016/01/christie_vetoes_a_sequel_to_film_tax_credits.html