Los Angeles, California, is experiencing a downturn in local film and television production, prompting concerns that the city might experience challenges similar to Detroit’s automotive industry decline decades ago. Max Gorden, a correspondent for FOX Business, reported that anxiety is growing about a possible hollowing out of the city as movie productions relocate.
According to a recent report by FilmLA, the Greater Los Angeles area recorded just under 5,300 shoot days for films, TV shows, commercials, and other projects in the first quarter of the year, a 22.4% decrease from the corresponding period in 2024. The not-for-profit organization attributed this to a global decline in production and increased competition from other regions for film projects and jobs.
Although Los Angeles experienced significant wildfires in January, FilmLA indicated that there was only a minor impact on filming during the quarter. The number of on-location production days in early 2025 was also lower than those in the first quarter of 2021, which had over 7,000 shoot days, according to Gorden, citing FilmLA data.
Gary Onyshko, CEO of Real to Reel Location Agency, expressed difficulties faced by smaller companies. He noted that many smaller companies are struggling financially, leading some to exit the industry. Additionally, job opportunities for below-the-line crew have become scarce.
Industry experts are now calling for fewer regulations and increased incentives from the California government to encourage film productions to return to the state. Location scout Dale Dreher emphasized that many individuals in Hollywood are also concerned about financial stability and are not the wealthy figures often assumed by the public.
In late October, Governor Gavin Newsom proposed an increase in California’s Film and Television Tax Credit Program to $750 million annually, up from the $330 million currently allocated. His office suggested that this increase could enable California to surpass other states offering tax credits and attract more entertainment projects back to the state.
In February, state lawmakers introduced legislation aiming to revamp the Film and Television Tax Credit Program. The proposed changes include increasing the overall program amount to $750 million, broadening eligibility for tax credits, and increasing the size of credits available for each project.
The entertainment industry in Los Angeles significantly contributes to the state’s economy, generating over $30 billion for California and supporting more than 200,000 local jobs, as highlighted by the Economic and Workforce Development Department of the City of Los Angeles. Additionally, it plays a crucial role in driving tourism to the city.
