The Struggles and Future of the LA Film Industry

There’s no business like show business, but in Los Angeles, it increasingly feels like there’s no business at all. If that sounds melodramatic, consider this: The Art Directors Guild, representing numerous film workers, is currently refusing new applicants because a significant portion of its members are unemployed. This reflects Hollywood’s ongoing decline, which has reached a critical point for both the industry and Southern California.

When the writers’ strike of 2023 ended, there was a surge of excitement and anticipation among industry professionals eager to return to work. However, production levels have yet to rebound to pre-strike numbers. As I eagerly sought opportunities, I found it more challenging than ever to secure staffing positions, get new series into production, or even pitch ideas.

In conversations with other writers and film workers in Southern California, it became clear that I wasn't alone. Many shared similar experiences: fewer productions are being greenlit, resulting in less work for thousands of people. Even the shows that do get made are increasingly being produced outside of Los Angeles.

This trend isn’t new; production has been slipping away from Hollywood since the 1950s. However, the current situation is more dire than ever. Regions in the United States, Canada, and Europe have aggressively increased incentives to attract TV shows and movies, leaving California behind. For instance, Georgia offers substantial tax credits on film and TV production costs. While actors, directors, and crew prefer to stay in Los Angeles, the financial incentives to film elsewhere are hard to ignore.

California has fallen behind in this tax-break arms race. Even as productions moved to other locations, Los Angeles maintained a robust level of film production until recently, largely due to the explosion of streaming services requiring vast amounts of content. But 2022 marked the peak of this "peak TV" era, with platforms like Netflix, Amazon, and Apple TV spending billions on content to attract subscribers. This resulted in hundreds of scripted series being released that year. As streaming services shift focus from subscriber growth to profitability, subscription prices have risen, and the number of new shows has decreased.

Consequently, we’re on the brink of feeling the full impact of losing productions to Georgia, Canada, and Eastern Europe. This doesn’t just affect artists and industry creatives; it impacts all of California. Although TV and movie productions are gradually resuming post-strikes, they remain far below 2022 levels and predominantly outside Los Angeles. Many studios are now taking the majority of their production dollars out of state.

New York, already a significant competitor, has recently enhanced its film tax credit program, making it even more attractive for filming.

Los Angeles has been a haven for filmmakers for decades, thanks to our ample sunlight, diverse locations, and world-class talent. But to keep Hollywood in Hollywood, we need to do more. The California Film Commission recently awarded significant tax credits for television projects, expected to generate substantial revenue for local workers and businesses, and employ thousands of cast, crew, and background performers. Since 2009, their Film and Television Tax Credit Program has enticed numerous TV series to relocate to California.

However, we must do better. To remain the center of film production, maintain a vibrant workforce, and keep billions flowing into our economy, California needs to enhance its incentives. If production levels in Southern California dip below a critical threshold for too long, the industry's talent and revenue will drift away, making it even harder to attract future productions.

The California Film Commission and FilmLA need to act now. By dramatically improving incentives, we can retain our current productions and attract new ones to Los Angeles. Let’s ensure that Hollywood remains the epicenter of the film industry and that the show continues with us at the forefront.