Hollywood Shifts Away from Los Angeles’ Dominance
In recent years, Hollywood has witnessed a significant shift as film and television production gradually moves away from Los Angeles. A combination of high living costs and increased competition from other states and countries has prompted major studios to explore alternative locations for their projects.
Decline in Production in Los Angeles
Data indicates a staggering 24% decrease in major scripted film and TV projects shot in Los Angeles year-over-year. Luminate, a Hollywood data provider, recently released an annual report detailing this decline. The six-year analysis shows a continuing downward trend, highlighting a shift in the industry towards locations outside of California.
Statistics on Production Decline
- Overall shoot days in Los Angeles fell to 19,694, down from 36,792 just three years ago.
- Feature film shooting decreased by 16.8% year-over-year.
- Television production was down by 14.7%.
- Commercial shoots dropped by 14.5%.
This trend indicates a growing challenge for Los Angeles as an entertainment hub. The city’s primary shoot-day tracker, FilmLA, corroborates these numbers, calling attention to the urgent need for action from local officials.
Emerging Competitors and Incentives
States like New Jersey, Georgia, Louisiana, New Mexico, and Illinois have emerged as competitive alternatives, offering lucrative tax incentives to attract productions. Additionally, New York is expanding its foothold in the entertainment industry, adding to the pressure on Los Angeles.
To counter this trend, California Governor Gavin Newsom signed a bill in July 2022 to increase film and TV project incentives from $330 million to $750 million annually. This move highlights the state’s acknowledgment of the need to remain competitive in an evolving landscape.
Efforts by Local Officials
Los Angeles officials are actively working to improve conditions for filmmakers. Mayor Karen Bass’s office has unveiled proposals to lower shooting fees at iconic locations like Griffith Observatory. The city is also implementing a tiered permitting structure aimed at easing the application process for low-impact productions.
Globalization of the Film Industry
The streaming industry, dominated by platforms like Netflix, has also contributed to the decline in local production. As companies expand their reach to international markets, they are increasingly filming in countries that serve as target audiences. This trend is reflected in statistics indicating a 12 percentage point drop in the number of scripted features and TV projects filmed in the U.S. over the past five years.
International Gains
Countries like Canada and the United Kingdom have benefited from this shift, with filming counts in those regions rising by 10% and 11%, respectively, in the last year. This trend demonstrates that filmmakers are now considering cost-effective locations that cater to global audiences.
Conclusion
The future of Hollywood’s once-uncontested dominance is in question. With production opportunities dwindling in Los Angeles, other locales are stepping in to fill the gap. While local officials are making strides to retain filmmakers, the challenge of adapting to an increasingly competitive global market remains. The landscape of the entertainment industry is evolving, and Los Angeles must respond swiftly to maintain its status as a filmmaking powerhouse.
