What's Happening?
The occupancy rate for major soundstages in Los Angeles was reported at 62% during the first half of 2025, a slight decrease from 63% in 2024, according to FilmLA. This marks a significant drop from the 90% or higher occupancy rates seen between 2016
and 2022. The decline is attributed to the 'Great Netflix Correction' of 2022 and the dual strikes by WGA and SAG-AFTRA in 2023, which led to a contraction in the industry and cost-cutting measures. Despite a 5% increase in the number of projects filmed from 2023 to 2024, the total number of shoot days fell by 8%, largely due to a 23% decrease in scripted television shoot days. The report highlights the challenges faced by new soundstages like Cinespace Studios and East End Studios, as well as upcoming developments such as Echelon Studios and Stocker Street Creative.
Why It's Important?
The low occupancy rates of soundstages in Los Angeles reflect broader challenges in the entertainment industry, impacting local crew members and vendors. The decline in production activity could have significant economic implications for the region, which boasts 8.3 million square feet of soundstage space, making it a global leader. The situation underscores the need for strategic initiatives to attract more productions to the area. Efforts such as California's expanded film and television tax credit program and initiatives by L.A. Mayor Karen Bass and Councilmember Adrin Nazarian aim to address these challenges. However, the industry must navigate the aftermath of recent strikes and economic corrections to stabilize and grow.
What's Next?
The future of L.A.'s soundstage occupancy will depend on the effectiveness of local government initiatives and the industry's ability to recover from recent disruptions. The expansion of tax credits and other incentives may help attract more productions, but the industry must also adapt to changing market dynamics. The development of new soundstages suggests optimism for future growth, but filling these spaces will require a concerted effort from industry stakeholders. Monitoring the impact of these initiatives and the response from production companies will be crucial in determining the long-term viability of L.A.'s soundstage infrastructure.
