News Summary
Los Angeles is witnessing a significant decline in film and television production, marked by over a 13% drop in on-location shooting. Despite California’s expansion of tax incentives aimed at boosting the industry, rising labor costs and competition from other states are prompting productions to leave. Television production is particularly hard hit, with a notable decline in reality TV. Although some independent projects are receiving tax credits, doubts persist about the effectiveness of these financial incentives in reversing the downward trend in LA’s entertainment sector.
Los Angeles Faces Production Decline Despite Tax Incentives
Los Angeles, a major hub for film and television production, is experiencing an unprecedented decline in on-location shooting, crashing to an all-time low. From July to September, on-location filming dropped by over 13%, amounting to just 4,380 shoot days, which marks a significant downturn in the industry. This production decline impacts nearly every category, with the only exception being a slight increase in feature film shooting.
Contributing factors to this drop include rising labor costs, a tax credit program that has become oversubscribed, and the migration of productions to regions offering more attractive financial incentives. Although California expanded its tax incentive program earlier this year by allocating $750 million in subsidies aimed at supporting productions within the state, the anticipated boost from these incentives is yet to be realized.
Production Trends and Changes
In 2021, production levels in the region reached a record high but have since been on a downward spiral. The recent dual strikes involving writers and actors throughout 2023 further exacerbated the situation, accelerating the loss of film and TV productions departing from Los Angeles.
The California Film Commission did award tax credits to independent films as a strategic response to the overwhelming trend of high-budget films relocating to states with lower labor and more supplemental funding. With the influx of new applications following the expansion of the tax incentive program, there has been an incredible almost 400% increase in interested productions.
Out of the first 22 projects approved for the expanded tax credit, several significant productions from major companies like Apple TV+ and HBO have been included, with all having a timeline of 180 days to initiate filming. Nevertheless, doubts linger regarding the effectiveness of these incentives — with many questioning whether these projects would still opt to film in California without the financial perks.
Impact on Television Production
Television production has seen a concerning decline of over 20%, significantly influenced by a drastic drop in reality TV filming, which has experienced a staggering 67% reduction in shoot days compared to the five-year average. In contrast, feature film production in Los Angeles has shown resilience, achieving nearly a 10% year-over-year increase primarily driven by an uptick in support for independent films.
Governor Gavin Newsom highlighted the dual purpose of the expanded tax incentives, indicating that they aim to not only preserve Hollywood’s legacy but also to generate economic prospects and enable support for local communities. In total, predictions suggest that this growth could result in as much as $3.75 billion in economic stimulation for the entertainment sector over the next five years.
Global Production Trends
Despite the localized downturn in Los Angeles, global production trends indicate an overall increase of 11%. The entertainment industry continues to evolve, with shifts prompting film and television entities to seek out competitive locations that can offer more favorable production conditions.
As the landscape of film and television continues to change, the effectiveness of California’s incentives will be closely monitored to assess their role in attracting productions back to the state. If successful, this could lead to renewed vitality in Los Angeles’ film industry, alongside preserving job opportunities for countless individuals engaged in this pivotal sector of the economy.
Deeper Dive: News & Info About This Topic
HERE Resources
California Faces Rising Grocery Prices This Summer
California Agriculture Faces Decline Amid Rising Costs
Amgen Invests $600 Million in New R&D Facility in California
Economic Slowdown in China: Analyzing the Current Trends
China’s Economic Growth Faces Challenges in July
California Increases Film and Television Tax Credits
Coca-Cola Launches New Cane Sugar Beverage
Pueblo Faces Decline in Home Sales and Prices
Additional Resources
- NBC Los Angeles: FilmLA Report on TV and Movie Shoot in Los Angeles
- Hollywood Reporter: Los Angeles Film and TV Production Levels
- Deadline: California Film and TV Production Tax Incentives
- IndieWire: LA Film Production Declines Despite California Incentives
- Los Angeles Times: 22 Productions Selected for California Tax Credits
Author: STAFF HERE LOS ANGELES WRITER
LOS ANGELES STAFF WRITER The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles County, and beyond, specializing in "news you can use" with coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise from years of dedicated reporting and strong community input, including local press releases and business updates, while delivering top reporting on high-value events like the Academy Awards, LA Auto Show, and Los Angeles Marathon, extending coverage to key organizations such as the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology like Warner Bros. and SpaceX, and as part of the broader HERE network including HEREAnaheim.com , HERECostaMesa.com , HEREHuntingtonBeach.com , and HERESantaAna.com , providing comprehensive, credible insights into Southern California's dynamic landscape. HERE Anaheim HERE Beverly Hills HERE Coronado HERE Costa Mesa HERE Hollywood HERE Huntington Beach HERE Long Beach HERE Los Angeles HERE Mission Viejo HERE San Diego HERE Santa Ana
