Hollywood is facing a dramatic decline, with film and TV production in Los Angeles plummeting by almost 40%, leaving the industry grappling with financial losses and workforce migration.
At a Glance
- On-location film and TV production in Los Angeles has plummeted as productions flee the state.
- The primary driver is “runaway production,” as other states and countries offer better tax incentives and cheaper labor.
- In a major policy shift, California Democrats under Gov. Gavin Newsom are now pushing for massive tax breaks to keep the industry from leaving.
- Critics argue that Hollywood’s focus on “woke” content is also alienating audiences and contributing to the decline.
Hollywood’s Runaway Production Problem
Hollywood, the glitzy and glamorous heart of the American entertainment industry, is facing a severe crisis. On-location film and television production in Los Angeles has cratered as studios and producers flee the state in search of greener pastures. This “runaway production” phenomenon is driven by simple economics: states like Georgia and countries like Canada offer far more generous tax incentives and cheaper labor, making it fiscally irresponsible for many to shoot in California.
The decline has a devastating impact that extends far beyond A-list actors and directors. It has hollowed out the blue-collar backbone of the industry, hurting the thousands of electricians, carpenters, makeup artists, caterers, and other craftspeople who depend on a thriving production ecosystem.
Is “Woke” Content to Blame?
While financial incentives are the primary driver of runaway production, some conservative critics argue that Hollywood’s problems run deeper. As noted by Breitbart News, there is a growing belief that the industry’s relentless focus on producing “woke” cultural content is alienating a large portion of the American audience. As viewers increasingly tune out of content they perceive as preachy and out of touch with their values, the economic foundation of the industry is weakened.
Democrats’ Desperate Pivot on Tax Breaks
The production exodus has become so severe that it has forced a dramatic political reversal. As detailed in The New York Times, California Democrats, who for decades were skeptical or openly hostile to “corporate tax breaks” for the wealthy entertainment industry, are now desperate to keep Hollywood from leaving.
Under the leadership of Governor Gavin Newsom, the state is now championing a massive Film and Television Tax Credit Program, which provides hundreds of millions of dollars in subsidies to productions that agree to stay in California. This U-turn highlights the powerful influence of Hollywood’s unions and the state’s fear of losing its most iconic industry. However, some analysts remain skeptical, questioning whether the tax credits provide a genuine return on investment for taxpayers or are merely a “patchwork for a sinking ship.”
