The once-thriving heart of Hollywood is in crisis. Los Angeles, the iconic hub of film and TV production, is witnessing a staggering decline in its industry. But here’s where it gets controversial: Is this the beginning of the end for LA’s dominance, or a pivotal moment that could spark a much-needed revival? Let’s dive into the details.
According to a recent report by FilmLA, the nonprofit organization managing film permits for the city and county, production levels in LA have plummeted to unprecedented lows. From July to September, every category of production—except for a modest rise in feature film shooting—saw significant losses compared to the same period last year, which was already at a record low. Shoot days in LA dropped by over 13 percent, totaling just 4,380 days during this period.
This downward spiral isn’t new. Since the peak of 2021, LA’s production landscape has been eroding, accelerated by the dual writers’ and actors’ strikes that drove many films and TV shows to seek greener pastures elsewhere. The reasons are multifaceted: soaring labor costs, an oversubscribed tax credit program, and the irresistible allure of lucrative subsidies offered by other states and countries. Earlier this year, California responded by expanding its subsidy program for in-state productions, but will it be enough?
FilmLA remains cautiously optimistic. Philip Sokoloski, vice president of the organization, stated, ‘We understand it will take time for incentive-backed projects to materialize in our data. While we weren’t surprised by the continued decline this summer, we’re already seeing early signs of these incentives working. Productions are reaching out to scout locations and secure permits, which is encouraging.’
The first 22 projects approved under the expanded tax credit program, including Apple TV’s The Studio and a new HBO series from Larry David, have 180 days to begin production. But here’s the million-dollar question: Would these projects have chosen California without the tax credits? If not, LA could see a much-needed boost in production numbers. However, if they would have filmed in the state regardless, as some critics argue, the program might simply be subsidizing productions that were already committed to California. Over the next five years, the expansion is set to distribute up to $3.75 billion in credits to the entertainment industry. The next six months will be a critical test of this ambitious strategy.
One of the most alarming trends is the sharp decline in TV production, historically a cornerstone of LA’s industry. From July to September, TV filming dropped by over 20 percent, driven largely by a 67 percent plunge in reality TV shoot days, which totaled just 649. Popular shows like Dancing with the Stars (ABC), The Price is Right (CBS), and The Valley (Bravo) are among those still filming in the region, but their numbers are dwindling.
There is, however, a silver lining. Feature film production in California appears to be rebounding, with a nearly 10 percent year-over-year increase. 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. This shift reflects a broader trend: big-budget studio films are increasingly flocking to states and countries with lower labor costs and more generous subsidies. The UK, for instance, has become a top destination by allowing above-the-line costs, such as director and actor salaries, to qualify for incentives.
Sokoloski emphasized, ‘LA’s creative industry is too vital to abandon without a fight. We’re actively working to streamline the on-location filmmaking process, hosting industry listening sessions, and collaborating with government partners to implement actionable improvements.’
Globally, production levels are rising, with an 11 percent increase compared to last year, according to ProdPro, a service tracking international filming trends. But will LA be able to reclaim its throne, or is its reign as the entertainment capital coming to an end? What do you think? Is California’s subsidy program a wise investment, or a costly band-aid solution? Share your thoughts in the comments—this debate is far from over.
