Los Angeles is facing a significant downturn in film and television production, as studios increasingly seek more affordable locations and generous tax incentives elsewhere. The industry’s traditional home base is grappling with a 24 percent year-over-year drop in major scripted projects, according to a recent report from Luminate.
The Exodus from Hollywood
The shift is evident across the industry. Superhero movies are now being filmed in London, while Netflix, Paramount, and Lionsgate have all made substantial investments in new production hubs in New Jersey. States like Georgia, Louisiana, and New Mexico are actively competing for projects with attractive financial incentives, and even New York is bolstering its already significant presence in the entertainment sector.
In Los Angeles, studio lots are adapting to the changing landscape, attempting to fill vacant stages with influencer content as network orders for traditional TV series decline. Some operators are even putting soundstage complexes up for sale, focusing on properties with long-term, anchor-tenant commitments. The operator of Radford Studio Center recently defaulted on a $1.1 billion loan.
A Call for Competitiveness
Victor Coleman, CEO of Hudson Pacific, which leases space to Netflix at Sunset Bronson Studios, stated in November that state and local officials “took the industry for granted for a very long time and realized now that they have to be competitive.” He added that officials recognize the need for further action, but whether it will be enough remains to be seen.
The decline in production is starkly illustrated by data from FilmLA, the city’s primary shoot day tracker. In 2025, total shoot days reached 19,694, a significant drop from the 36,792 days recorded just three years prior. Feature film shoots declined by 16.8 percent, television shoots by 14.7 percent, and commercial shoots by 14.5 percent.
California Fights Back
State and local officials are responding with efforts to boost incentives and streamline the permitting process. Governor Gavin Newsom signed a bill in July increasing film and TV incentives from $330 million to $750 million annually. Los Angeles Mayor Karen Bass has also announced initiatives to lower fees at locations like Griffith Observatory and expedite permit reviews.
California is also offering tax credits to projects that emphasize the state’s identity, with recent examples including incentives for the Baywatch reboot ($21 million), the Snoop Dogg biopic ($17 million), and Ang Lee’s Gold Mountain ($7.7 million).
However, the shift towards global distribution, exemplified by Netflix’s 325 million subscribers, and a decline in traditional theatrical releases (112 movies in 2025, down from 120 in 2019) are driving studios to seek locations worldwide. Canada and the United Kingdom have recently seen increases in filming activity, rising 10 percent and 11 percent respectively in the fourth quarter.
Frequently Asked Questions
What is driving the decline in film and TV production in Los Angeles?
The decline is driven by a combination of factors, including more attractive tax incentives offered by other states and countries, the rise of streaming services with global distribution strategies, and a decrease in the number of movies made for traditional theatrical release.
What is the state of California doing to address the issue?
California has increased film and TV incentives from $330 million to $750 million annually and is working to streamline the permitting process to make it easier to film in the state. They are also offering tax credits to projects that tell “Golden State-ish” stories.
What could happen next for the entertainment industry in Los Angeles?
If current trends continue, Los Angeles could see a further decline in production activity. However, if the state and local governments are successful in implementing effective incentives and reducing bureaucratic hurdles, they could potentially stabilize the industry and attract more projects back to the region. The outcome of the Warner Bros. sale could also significantly impact the future landscape.
As the entertainment industry continues to evolve, will Los Angeles be able to maintain its position as a global production hub?
