L.A. Soundstages Face a Capacity Crisis: What’s Behind the Empty Spaces?
Los Angeles, long the undisputed capital of film and television production, is grappling with a surprising problem: too much soundstage space and not enough productions to fill it. New data reveals a continuing slump in occupancy rates, raising questions about the future of the city’s dominant position in the entertainment industry.
Occupancy Rates Plummet from Pandemic Highs
The latest report from FilmLA shows that soundstage occupancy in the Los Angeles area averaged 62% during the first half of 2025. This represents a slight dip from the 63% recorded in 2024, but a significant decline from the 96% peak seen in 2016. Even during the COVID-19 pandemic, occupancy remained in the mid-90s before a sharp 25.6% decrease from 2022 to 2023.
The Impact of Strikes and the “Great Netflix Correction”
The current situation is a direct result of several converging factors. The 2023 WGA and SAG-AFTRA strikes brought production to a standstill, creating a backlog that is still being worked through. Compounding this, the industry experienced a period of contraction following the “Great Netflix Correction” of 2022, as streaming services reassessed their content strategies and cut costs.
Shoot Days and Project Numbers Advise a Complex Story
While the total number of projects shot in the L.A. Area increased by 5% between 2023 and 2024 (from 1,225 to 1,287), the total number of shoot days actually decreased by 8% (from 8,671 to 7,940). This decline is largely attributed to a 23% drop in shoot days for scripted television during the same period. This suggests productions are becoming more efficient, or perhaps smaller in scope.
New Stages, Existing Challenges
Ironically, the slump in occupancy comes as new soundstage facilities are opening across the Los Angeles area, including Cinespace Studios in Woodland Hills and East End Studios in the Arts District. Major developments like Echelon Studios and Stocker Street Creative are also underway, adding even more capacity to a market already struggling to fill existing space. Los Angeles currently boasts 8.3 million square feet of soundstage space, surpassing the U.K.’s 7.7 million and Ontario’s 3.7 million.
Hope on the Horizon: Tax Credits and Local Initiatives
We find signs of potential improvement. California’s expanded film and television tax credit program, coupled with initiatives from L.A. Mayor Karen Bass and Councilmember Adrin Nazarian to streamline permitting processes, offer some hope for attracting more production to the region. Although, it will capture time for these efforts to translate into increased occupancy rates.
Will Productions Return to L.A.?
Los Angeles has the infrastructure, but the question remains: will the productions follow? The city’s ability to compete with other production hubs will depend on its continued commitment to incentivizing filming and reducing bureaucratic hurdles. The next year will be critical in determining whether L.A. Can regain its footing as the undisputed leader in soundstage occupancy.
FAQ
Q: What is the current soundstage occupancy rate in Los Angeles?
A: The average occupancy rate for major soundstages in Los Angeles was 62% during the first half of 2025.
Q: What caused the decline in soundstage occupancy?
A: The decline is due to a combination of factors, including the 2023 WGA and SAG-AFTRA strikes and a contraction in the streaming industry.
Q: Is Los Angeles still the leader in soundstage space?
A: Yes, Los Angeles has the most soundstage space globally, with 8.3 million square feet.
Q: What is being done to address the issue?
A: California has expanded its film and television tax credit program, and local initiatives are underway to streamline permitting processes.
Did you realize? The number of shoot days decreased by 8% between 2023 and 2024, despite an increase in the total number of projects filmed.
Pro Tip: Keep an eye on California’s tax incentive program. Changes to these incentives can significantly impact where productions choose to film.
What are your thoughts on the future of film production in Los Angeles? Share your insights in the comments below!
