LA Entertainment Industry Faces Production Exodus
Los Angeles's entertainment industry is reportedly facing a crisis as film and television production moves to more business-friendly locations like Georgia and Canada. Professionals across various roles, from acting to music composition, have expressed unprecedented concerns about the long-term sustainability of their careers in the region.
The decline in Greater Los Angeles film and TV production is stark, with a nearly 20% plunge in 2023 and a 22.4% year-over-year drop in the first quarter of 2025. Los Angeles' share of domestic production fell from 23% in 2021 to 18% in 2023, with the number of scripted projects shot locally dropping from 228 to 183 in the same period. The primary driver of this "runaway production" is the aggressive tax incentives offered by other locations. Georgia offers up to a 30% transferable tax credit, which can be increased by an additional 10% if the project includes a Georgia promotional logo. This is more competitive than California's former 20% base credit. The UK has also seen a major increase in productions, earning it the nickname "Brollywood". This exodus has a significant human cost, with the number of film and television industry workers in Los Angeles County falling from 142,000 to about 100,000 by the end of 2024. Unions like the Art Directors Guild have taken drastic steps, such as suspending training programs due to widespread unemployment among their members. The ripple effect impacts countless small businesses, from caterers to equipment rental houses, that depend on the industry. Even major studios are shifting their slates; in 2024, Disney scheduled only three of its 22 live-action films to shoot in California. This trend extends to television, with hit shows like Adam Scott's "Severance" filming in New York and New Jersey to cut costs. The "Peak TV" era, which saw a glut of content creation, ended in 2022, and as streaming platforms focus more on profitability, they are increasingly moving productions overseas. In response, California has fought back by more than doubling its film and TV tax credit program, from $330 million to $750 million annually. The revised program, dubbed Program 4.0, increases the base tax credit percentage and makes the credits refundable, which is a significant benefit for production companies. The new legislation also expands eligibility to include animated features and aims to bring productions back to the state. For relocating shows, the tax credit can be as high as 40%. This renewed investment is an attempt to stabilize the industry and reclaim projects that have been lured away by more competitive offers.
