What's Happening?
A new study released by a coalition of major entertainment 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 decline in U.S.-based film and television production over the past 25 years. The report, conducted by EY Quantitative Economics and Statistics (EY QUEST), analyzed the shift in production locations from 1999 to 2024. Key findings show that the share of production spending by major U.S. studios on films primarily shot in the U.S. dropped by 32 percentage points to 42%. Similarly, the share of production spending on U.S.-based television episodes decreased by 30 percentage points to 64%. This trend also extends to employment, with the share of cast and crew working on U.S.-based films declining by 29 percentage points to 43%, and for television, a 28 percentage-point decrease to 58%. The study focused on productions with budgets exceeding $5 million for feature films and $1 million for TV episodes under 41 minutes, or $1.7 million for longer episodes, to capture projects with significant economic impact and strategic location decisions.
Why It's Important?
This shift in film and television production away from the United States has substantial implications for the U.S. economy and its workforce. The entertainment industry supports over two million U.S. jobs, and the relocation of productions to foreign countries directly impacts these jobs, including those for technicians, artisans, and craftspersons represented by the unions. The report highlights a critical need for a federal film and television tax credit to enhance the U.S.'s competitiveness against foreign production incentives. Without such measures, the U.S. risks further erosion of its position as a global leader in entertainment production, leading to job losses and a decrease in economic activity within the sector. The decline in U.S.-based production also affects ancillary businesses and local economies that benefit from the presence of film and television shoots, such as hospitality, catering, and equipment rental services. The long-term consequences could include a diminished talent pool and infrastructure within the U.S. as opportunities move abroad.
What's Next?
The report explicitly calls for action, specifically advocating for a federal film and television tax credit. This recommendation suggests that the unions and their allies will likely lobby Congress and other government bodies to implement policies designed to incentivize domestic production. The findings, when considered alongside a recent study by the Motion Picture Association, underscore the urgency of the situation. Stakeholders, including industry executives, lawmakers, and labor organizations, are expected to engage in discussions about potential legislative solutions. The goal will be to create a more competitive environment for film and television production within the U.S., aiming to secure existing jobs and attract new projects. The outcome of these efforts will determine whether the U.S. can reverse the trend of declining domestic production and retain its industry leadership.
Beyond the Headlines
Beyond the immediate economic and employment concerns, the shift in film and television production raises broader questions about cultural identity and national storytelling. As more productions move overseas, there's a potential for a subtle but significant impact on the portrayal of American life and values in global media. The report implicitly touches on the ethical responsibility of major U.S. studios to support the domestic workforce and contribute to the national economy, especially given the industry's cultural influence. The reliance on foreign incentives also highlights a global competition for creative industries, where countries are actively using financial tools to attract production. This trend could lead to a 'race to the bottom' in terms of labor standards and environmental regulations if not carefully managed. The long-term implications could reshape the very nature of Hollywood and its relationship with the American public, potentially leading to a less diverse and less representative media landscape if domestic stories are increasingly told through an international lens.
