Hollywood’s Production Exodus: Should Los Angeles Remain A Global Filmmaking Capital?

As Hollywood’s film and TV shoots in Los Angeles reach historically low numbers, competing production hubs like Australia, the U.K., and Canada continue to attract big-budget projects. Industry insiders are lobbying for fewer restrictions and increased tax incentives in California to prevent more productions from relocating. As filming costs rise, especially amid new wage increases from recent union contracts, studio executives and creators are under greater pressure to seek financially viable locations. With the city’s production slowdown showing signs of bottoming out, experts warn that without further action, L.A.’s film industry might struggle to maintain its standing as a central hub for global filmmaking.

Hollywood Status Under Threat

The iconic film and TV industry in Los Angeles faces a challenging turning point. Hollywood’s long-held status as the beating heart of entertainment production is under threat as the number of shoots dwindles and production hubs overseas and in other states eagerly lure projects away. As competition intensifies, insiders warn that without increased tax incentives and fewer filming restrictions, California may continue to lose its share of the multi-billion-dollar industry.

Formerly The Unrivaled Center of Film & Television

Once the unrivaled center of the film and television world, Los Angeles is now struggling to retain its productions. Shows that called L.A. home, like MasterChef, are eyeing other locations as the city grapples with rising operational costs, extensive regulations, and the lingering impact of recent work stoppages. In fact, FilmLA, the city’s primary permitting office, revealed that L.A. saw fewer shooting days this summer than during last year’s industry-wide strikes. With production numbers dipping to levels unseen in years, the fear is that Los Angeles could permanently lose its competitive edge.

Producers like those behind MasterChef have started relocating their productions abroad, with Australia now offering attractive tax credits for unscripted shows, something California currently excludes. This lack of incentives has opened the door for other regions to court Hollywood’s productions with higher tax rebates and cost-saving benefits. The U.K., Canada, and New York are also experiencing stable or increasing production numbers. In contrast, California’s film industry saw a 35% decline in scripted projects with budgets over $10 million this year. The situation has left prominent figures like Judd Apatow advocating for “healthy tax rebates” to prevent further migration.

Pros and Cons of L.A.’s Current Production Landscape & Production Environment

Despite its challenges, Los Angeles remains a global hub of talent, resources, and infrastructure, which makes it highly desirable for large-scale projects. California’s 20% base credit, although smaller than incentives offered elsewhere, still draws projects that need the expertise and unique locations the state offers. The vast ecosystem of skilled workers and post-production resources in L.A. cannot be easily matched by newer hubs. Furthermore, some industry experts believe the decline may have bottomed out, suggesting the potential for a recovery as demand increases post-strikes.

Another benefit is the enduring appeal of California’s cultural prestige. Hollywood’s influence extends beyond film to a diverse entertainment network, including media conglomerates, marketing agencies, and talent management companies, making it a one-stop shop for comprehensive production needs. This centralization has historically made L.A. a prime location, not only for the filming itself but also for networking and deal-making, advantages that are hard to replicate elsewhere.

However, the costs of doing business in L.A. are a major deterrent, pushing producers toward locations with more robust financial incentives. The state’s exclusion of above-the-line costs (like salaries for actors and directors) from its incentive program is a considerable disadvantage compared to places like the U.K. and Canada. Further, as labor and permitting costs soar, especially following union contract raises, productions increasingly find it unsustainable to shoot in L.A. Studios are tightening budgets across the board, making it harder to justify staying in California without a solid financial case.

Another major factor is the costly and restrictive nature of California’s permitting process. According to FilmLA, last year’s rate hikes compounded the burden on location budgets. With increased fees and limitations on permit durations and location numbers, production teams find themselves juggling high costs with additional logistical hurdles. As veteran location manager Jason McCauley points out, permit prices have doubled in some cases, making it hard to justify choosing L.A. when more affordable options abound.

Impact on Society

The migration of film and television projects from Los Angeles impacts more than just the entertainment industry. The city and surrounding areas rely heavily on film-related jobs, with tens of thousands of locals dependent on production-driven income. The steady decline in filming activity affects not only crew members but also the wider network of support businesses, from catering to equipment rentals and hospitality. When production companies shift operations overseas, the economic ripple effect hits California’s economy, leading to lost jobs and reduced revenue for local businesses.

Additionally, the situation highlights a broader societal shift in how major cities like Los Angeles must adapt to remain economically viable in an increasingly globalized industry. The trend reflects broader workforce shifts, as companies across sectors weigh the costs and benefits of local production. The ongoing exodus of entertainment projects illustrates a tension between maintaining traditional job sectors and adapting to the realities of international competition, underscoring the need for policy changes to secure jobs and industry growth domestically.

Conclusion: A Call to Action for Policy Change

California’s place at the forefront of entertainment production is not guaranteed. As the industry evolves, L.A. must re-evaluate its approach to filming costs, tax incentives, and permit structures to attract and retain productions. Without proactive measures, more projects may continue relocating to regions with better financial incentives. Supporting local talent and infrastructure is essential for preserving Hollywood’s legacy and economic contributions to the state. Fans, industry professionals, and policymakers alike should advocate for reform, ensuring that the city of stars can remain the industry’s home.