What's Happening?
A new study released by several major entertainment guilds and unions, including the Directors Guild of America (DGA), the International Alliance of Theatrical Stage Employees (IATSE), and the Screen Actors Guild-American Federation of Television and Radio
Artists (SAG-AFTRA), indicates a significant shift in film and television production away from the United States. The report, conducted by EY Quantitative Economics and Statistics (EY QUEST), analyzed a 25-year period from 1999 to 2024. Key findings show that the share of production spending by major U.S. studios on movies filmed partially or primarily in the U.S. decreased from 74% to 42%, a 32 percentage-point drop. Similarly, for television episodes, the share of production spending with significant U.S.-based production declined by 30 percentage points to 64%. The study also noted a decrease in the share of films and TV episodes produced in the U.S., as well as a substantial reduction in the percentage of cast and crew working on U.S.-based productions for both film and television.
Why It's Important?
This trend has significant implications for the U.S. economy and the two million American jobs supported by the film and television industry. The migration of production to foreign locations means a loss of jobs for U.S. cast and crew, ranging from actors and directors to stagehands and teamsters. The decline in domestic production spending also impacts local economies that benefit from film shoots, such as hospitality, catering, and equipment rental services. The report highlights that this shift is largely driven by foreign production incentives, making other countries more attractive for studios. Without intervention, the U.S. risks losing its competitive edge in a major global industry, potentially leading to further job losses and a diminished economic footprint for the entertainment sector within the country.
What's Next?
The report explicitly calls for a federal film and television tax credit to enhance the U.S.'s competitiveness against foreign production incentives. This recommendation suggests that industry stakeholders, including the guilds and unions that commissioned the study, will likely advocate for legislative action to introduce such a credit. The goal is to incentivize major U.S. studios to bring more production back to the country, thereby securing U.S.-based jobs and economic activity. The findings, when considered alongside a recent study by the Motion Picture Association, underscore the urgency for policy changes to prevent further erosion of the domestic film and television production industry. Discussions and lobbying efforts in Washington D.C. are anticipated as these organizations push for federal support.
Beyond the Headlines
Beyond the immediate economic impact, the shift in production locations raises questions about the cultural identity and narrative of American cinema and television. As more productions are filmed abroad, there's a potential for a subtle but significant change in the visual and thematic elements of U.S.-produced content, influenced by foreign landscapes, crews, and local regulations. This trend could also affect the development of new talent and infrastructure within the U.S., as opportunities for emerging filmmakers, technicians, and actors may become scarcer domestically. The long-term implications could include a weakening of the U.S. as a global hub for creative content production, potentially leading to a brain drain in the industry and a reduced capacity for innovation and storytelling that is uniquely American.
