I don't know much about the streaming and on-demand video online business. Subsequently, I didn't know pet cremation services existed either. These two services couldn't be any more different. However, what I do know is both Hulu and Animal Memorial Service, Inc. in Gilroy, California, secured the same state tax credit despite their different services, customers, headcount, revenue, and the list goes on.
eMarketer surveyed video-on-demand users in North America regarding their usage in Q1 2017 and only 12 percent of respondents used Hulu when compared to 54 percent respondents using Netflix and 27 percent using Amazon Prime Video. Business Insider suggests, Hulu's secret weapon is however advertising revenue. In June, Business Insider reported, "Hulu has a secret weapon that could give it an advantage over Netflix" signifying Hulu's, "willingness to embrace its broadcast TV roots has provided Hulu with something of a safety net, with advertising as a secondary source of revenue, allowing the company to grow at a slower pace and providing additional funds for building out it library of content."
To the contrary, while advertising revenue may do all the above, it is not the sole secret weapon to Hulu's success. In April 2017, Hulu secured a $4.3 million tax credit from the state of California in exchange for 410 jobs and $109 million capital investment. The distant third competitor of Netflix and Amazon Prime, is keenly aware of the benefits state and local incentives provide that its competitors have not secured cementing a moderate growth pace.
With astute leadership akin to Hulu, Animal Memorial Service, Inc. secured the same tax credit in 2014. The small pet cremation company received $40,000 for creating 5 new jobs full-time jobs and investing $370,000 back into its business.
California Competes Tax Credit is an income tax credit available to businesses that want to relocate or grow in California. Any business can apply. The tax credit was created for attraction and retention purposes. The set-aside for small businesses also addresses the common criticism that incentive programs favor large businesses.
The credit amount varies business-to-business. Businesses awarded negotiate and commit to certain employment or project investment requirements as part of the credit agreements.
News outlets often report the millions and sometimes billions of dollars granted to large corporations. Consequently, small and medium-sized business owners do not believe the same tax credits and incentives are available to them too. As with most state incentive programs, if your business intends to create jobs or is at risk of relocating to a different jurisdiction you may qualify for incentives and tax credits. The awarded amount is however subject to the number of jobs and capital investment at stake. Don't be misled, your business can receive the same tax credit and incentive that the multinational company in your state has received too. Seek out the state and local incentives that you can qualify for too.