A once-thriving hub of film and television production, Los Angeles now faces one of its deepest downturns, as economic pressures and global competition force studios to look elsewhere. In recent years, production in Hollywood has dropped dramatically. Studios, lured by more generous financial incentives abroad and across the United States, are pulling their operations out of California. Local industry workers are raising alarms, unions are lobbying for legislative changes, and policymakers are weighing the future of the state’s long-standing role as the center of the film world.
Table of Contents:
- Film production moves to Ireland, Malta and other low-cost locations
- Economic hardship hits local industry workers and support sectors
- Permitting bureaucracy and cost drives away small productions
- Pressure mounts to keep Hollywood competitive
Film production moves to Ireland, Malta and other low-cost locations
Between 2019 and 2024, on-location production in Los Angeles fell by over 30%. According to Film LA, only 20% of North American TV shows are now filmed in California. The UK, Ireland, Malta, and several US states like Georgia and New Mexico have become preferred destinations, offering tax credits ranging from 30% to 40%. These incentives have successfully drawn productions like Severance and high-profile films out of California.
Major international locations such as Malta, Hungary, and Italy offer aggressive financial incentives. One film received a 40% tax rebate by choosing Malta as a stand-in for Italy, London, and Santa Fe. In contrast, California’s current tax rebate program offers up to 20%, making it far less competitive globally. While Governor Gavin Newsom has proposed an increase from $330 million to $750 million in film and television tax credits, the state’s $12 billion budget deficit complicates the proposal’s implementation.
Economic hardship hits local industry workers and support sectors
Approximately 18,000 California-based entertainment jobs have disappeared in the past three years. Many of these belonged to union members from the International Alliance of Theatrical Stage Employees. Families with incomes over $100,000 are now considered “low income” in Los Angeles, where the median home price exceeds $1 million. The situation worsened after January 2025 wildfires destroyed thousands of homes, displacing more than 1,000 union members and further stressing the housing market.
Support industries also face losses. Hotel workers, caterers, drivers, lighting technicians, and film trainees have seen a sharp reduction in employment opportunities. While the city has tried to ease filming costs at municipal properties, such efforts have been labeled modest and insufficient by many local professionals.
Permitting bureaucracy and cost drives away small productions
Los Angeles’ complicated and expensive permitting system has become another major hurdle. FilmLA, the non-profit coordinating local permits, raised its fees in 2024. Independent filmmakers and students report paying over $2,000 in total fees for small-scale shoots, sometimes just for interviews in private homes. In comparison, filming in public areas in cities like New York can be free of charge under specific crew and equipment limits.
These bureaucratic challenges disproportionately affect low-budget projects and emerging creators. Young filmmakers graduating from local institutions such as USC face barriers to entry in their own city. Unlike international locations where trainee programs and local hiring requirements promote inclusion, Los Angeles offers fewer structured pathways for newcomers.
Pressure mounts to keep Hollywood competitive
Unions and industry groups continue to pressure lawmakers for higher tax credits and simplified regulations. An estimated 200,000 letters have been sent to California lawmakers in support of increasing film and TV production credits. Proponents argue these are not corporate giveaways but essential tools to preserve local employment. However, some researchers and legislators warn against overspending on subsidies with questionable returns.
While technological advancements and global accessibility have changed the landscape of film production, California’s role remains crucial. Los Angeles still hosts world-class editing, acting, and directing talent. But without rapid intervention, California risks becoming a symbolic relic of cinematic history rather than its active center.
Today, the film industry stands at a crossroads. With fewer productions, rising costs, and declining job stability, Hollywood workers face an uncertain future. Whether the city can reclaim its place as the global epicenter of filmmaking depends on urgent structural reforms, economic prioritization, and political will.
Source: The Guardian