Are Rivals Stealing Hollywood’s Spotlight? Inside LA’s Production Crisis

Los Angeles’ film and TV industry is facing an existential threat as production levels plummet to historic lows, raising urgent questions about Hollywood’s ability to compete with rival regions. According to FilmLA’s latest report, on-location shoot days in the first quarter of 2025 fell by 22.4% year-over-year, with television production crashing 30.5% and feature films down 28.9%. The data underscores a stark reality: California is losing its grip as the global capital of entertainment.

The Numbers Behind the Decline

• Television’s collapse: TV dramas fell 38.9%, comedies dropped 29.9%, and pilots—a critical pipeline for new shows—plummeted 80.3% to just 13 shoot days, the lowest ever recorded.
• Feature films: At 451 shoot days, feature production hit levels not seen since the pandemic.
• Commercials: The “least bad” category still slipped 2.1%, reflecting broader industry caution.

Why Hollywood Is Losing Ground

1. Tax Incentives Gap: States like Georgia and New Mexico—and countries like the UK and Canada—offer significantly larger rebates. California’s $330M annual tax credit program pales next to rivals, prompting Gov. Newsom to propose doubling it to $750M.
2. Global Production Slump: Studios are cutting costs amid streaming profitability pressures and post-strike belt-tightening.
3. Infrastructure Challenges: Soundstage occupancy in LA fell to 63% in 2024 as productions migrate to cheaper, tax-subsidized facilities elsewhere.

The Human Cost

The downturn has displaced thousands of crew members, with industry veterans warning of a “brain drain” as workers flee for opportunities in Atlanta, Toronto, or London. “We’re losing our talent base,” said Oscar-winning documentarian Peter Rotter. “They have to feed their families”.

Can California Fight Back?

Lawmakers are scrambling to pass Newsom’s expanded tax credit, which would make half-hour comedies eligible and prioritize projects with long-term studio leases. But critics argue the plan may be too little, too late. “We’ve been losing market share for years,” said California Film Commission’s Colleen Bell. “These times require bold moves”.

Wildfires: A Temporary Distraction

While January’s fires displaced crews and destroyed homes, FilmLA found they had minimal long-term impact—affected areas accounted for just 1.3% of regional filming over four years. The real crisis is systemic, not situational.

The Bottom Line: Hollywood’s crown is slipping. Without aggressive policy changes, LA risks becoming a relic as productions flock to greener pastures—and take the city’s cultural identity with them.

“California can’t afford to surrender any more work to its competitors,” FilmLA warned5. The question is whether lawmakers will listen before the credits roll on LA’s era as the entertainment capital.

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