The heart of Hollywood is hurting. Los Angeles, once the undisputed king of film and TV production, is facing a crisis. The latest numbers are in, and they paint a bleak picture: production levels have plummeted to new lows, sparking fears of a long-term decline. But here's where it gets controversial: is this a temporary setback or a sign of a deeper, more permanent shift in the industry? Let's dive into the details and explore what this means for the future of entertainment.
According to a recent report by FilmLA, the nonprofit organization responsible for issuing film permits in Los Angeles, the three-month period from July to September saw a significant drop in production across nearly all categories. The only exception? A modest increase in feature film shooting, which offers a glimmer of hope. Overall, shoot days in L.A. decreased by over 13 percent compared to the same period last year, which was already a record low. This decline has been building since 2021, when production reached its peak, and has been exacerbated by the dual writers and actors strikes, which accelerated the migration of projects out of the city.
But what's really driving this exodus? It's not just one factor; it's a perfect storm of challenges. Higher labor costs, an oversubscribed tax credit program, and the allure of generous subsidies in other states and countries have all played a role. California responded earlier this year by expanding its subsidy program, aiming to lure productions back to the state. However, the question remains: will this be enough to reverse the trend?
FilmLA remains optimistic. Philip Sokoloski, the organization's vice president, notes that it will take time for new incentive-backed projects to gain traction. “We’re already seeing early signs of these incentives having their desired effect,” he said, highlighting increased interest from productions looking to film in L.A. The first 22 projects approved for the expanded tax credit, including high-profile titles like Apple TV’s The Studio and a new HBO series from Larry David, have 180 days to start production. But here’s the million-dollar question: would these projects have chosen California without the incentives? If not, the state could see a much-needed boost in production numbers. However, if they would have filmed there anyway, as some critics argue, the subsidies might simply be lining the pockets of productions that were already committed to the state. Over the next five years, California will allocate up to $3.75 billion in credits to the entertainment industry, making the next six months a critical test of this ambitious strategy.
One of the most alarming trends is the steep decline in TV production, historically a cornerstone of L.A.'s industry. TV filming dropped by over 20 percent in the July-September period, driven largely by a staggering 67 percent decrease in reality TV shoot days. Reality shows like Dancing with the Stars, The Price is Right, and The Valley have long been staples of local production, but their numbers are dwindling. Is this the beginning of the end for reality TV in L.A., or just a temporary dip?
There is, however, a silver lining: feature film production appears to be on the rise, with a nearly 10 percent increase year over year. This uptick may be attributed to the California Film Commission’s recent focus on awarding tax credits to independent films. Of the 48 projects selected for subsidies earlier this year, only five were feature films, reflecting a broader shift away from big-budget studio productions, which are increasingly drawn to locations with cheaper labor and more generous incentives. The U.K., for example, has become a popular destination by allowing above-the-line costs, such as director and actor salaries, to qualify for subsidies.
Sokoloski emphasizes the importance of fighting to keep L.A.'s creative industry alive. “We are convening industry listening sessions and using what we learn to improve our service delivery and recommend actionable process and policy improvements,” he said. Globally, production seems to be rebounding, with an 11 percent increase compared to last year, according to ProdPro, a production tracking service. But will L.A. be able to reclaim its throne, or is the city destined to become just another filming location?
As California rolls the dice on its expanded tax credit program, the stakes couldn’t be higher. Will this gamble pay off, or will L.A. continue to lose its grip on the entertainment industry? And this is the part most people miss: the outcome won’t just affect Hollywood—it could reshape the global film and TV landscape. What do you think? Is California’s strategy a smart investment, or a costly mistake? Let us know in the comments below.
