What's Happening?
FilmLA has reported a significant decline in film production in Los Angeles, with a 13.2% drop in permitted production filming in the third quarter of 2025 compared to the previous year. This decrease comes despite California's increased investment in film industry
incentives, including Assembly Bill 132, which allocates $750 million annually for the next five years. The decline follows a double industry strike in 2023 that paused most scripted production, and subsequent years have seen continued decreases in production activity. The new incentives, which include expanded tax credit rates, were signed in midsummer, but their impact has yet to be reflected in production numbers.
Why It's Important?
The decline in film production in Los Angeles is significant for the U.S. entertainment industry, as Hollywood has traditionally been a central hub for film and television production. The reduced activity could impact local economies, employment, and the global competitiveness of the U.S. film industry. Other states and countries, such as New York and the U.K., are offering competitive incentives, potentially drawing productions away from California. This shift could lead to long-term changes in where films are produced, affecting the cultural and economic landscape of the industry.
What's Next?
The effectiveness of California's new incentives will be closely monitored to see if they can reverse the trend of declining production. Stakeholders, including film studios and local governments, may need to reassess their strategies to attract and retain productions. The competition from other regions with attractive incentives could lead to further legislative changes or increased investment in infrastructure to support the industry.
Beyond the Headlines
The decline in production raises questions about the sustainability of Los Angeles as a film production hub. The cultural identity of Hollywood and its role in the global film industry may be challenged if productions continue to move elsewhere. Additionally, the environmental impact of increased production in other regions could become a concern, as well as the potential loss of skilled labor and creative talent from Los Angeles.
