[KENNEDY FELTON]
Hollywood may have infrastructure, but more and more pieces are packed and set off. New reports show that filming in California has been steadily declining, hitting a historic low last year with no signs of improvement.
The Soundstage (the soundproof building where films, shows and commercials are being filmed) was nearly full from 2016 to 2022, with occupancy rates ranging from 90%. However, in 2024, that number fell to just 63%, according to Filmla’s latest Soundstage Production Report.
One major reason is the tax incentives for California film and television. Productions can recoup 20% to 25% of their costs, especially if they employ locally or are filming outside the regular LA zone. As part of a larger drive to continue filming in California, the new bill could knock that number down to up to 35% in some LA-based productions. There are also bonuses for post-production work carried out in the state. But other places like Georgia and Canada offer bigger, sometimes capless incentives, and productions are tracking money.
Rob Lowe, actor: “It’s cheaper to take 100 Americans to Ireland. It’s cheaper than going across Fox and past the soundstage and doing it there. It’s crazy.”
Actor Rob Lowe discussed the issue on a podcast featuring former co-star Adam Scott, explaining why his game show “Floor” is filmed in Ireland rather than Hollywood.
Rob Lowe, actor: “What California has committed is a crime. It’s a crime. Everyone should be fired.”
Even with more than 8 million square feet of production space, LA is losing ground. Filmla said competing markets such as the UK, New York, Georgia and Ontario, Canada have doubled their performance over the past five years.
Philip Sokoroski, Film spokesman: “The jurisdictions that work well from here – the sustained high level of soundstalk occupancy and job creation are those invested in film project attractions at the national, state and local levels.”
Filmla points out that there is a difference between occupancy and usage. Stages create jobs only when they are in use, not just sitting. The report says that while budgets are rising, the number of TV episodes will decrease, leading to longer gaps between seasons.
But the stakes are high. A recent OTIS College Report on Creative Economy shows that, like last fall, the film and television industry supported roughly 130,000 jobs in the state. So losing a production isn’t just a Hollywood headline, it’s an economic headline.
