Production in Los Angeles has reached another all-time low, a new nadir that will either be a diving board to continuing, deep-rooted erosion or an inflection point in the recovery of the region’s film industry.
The three-month period from July to September saw losses in every category of production — except for a slight uptick in feature film shooting — compared to the same period last year, which saw the then-lowest levels of filming, according to a report from FilmLA, the nonprofit group that handles film permits for the city and county, issued on Tuesday. Shooting in L.A. decreased by more than 13 percent to 4,380 shoot days over that span.
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Production in the region has been slipping since the record highs of 2021. Since then, the dual writers and actors strikes hastened the exodus of films and TV shows out of L.A. It wasn’t any one thing but a combination of higher labor costs, oversubscription to the tax credit program and the allure of bountiful subsidies to shoot elsewhere. Amid the steep drop-off in production, California earlier this year expanded the program that gives subsidies to productions that shoot in the state.
FilmLA is staying optimistic that production in L.A. will bounce back. “We know that it will take a little while for new incentive-backed projects to get underway and be reflected in our data, so we were not surprised to see on-location production continue to slip this summer despite the state’s increased investment,” said vp Philip Sokoloski in a statement. “Fortunately, we’ve already begun to see early signs of these incentives having their desired effect; we’re excited to be taking calls from productions looking to line up their locations and pull permits.”
The first 22 projects approved for the expanded tax credit, which include Apple TV+’s The Studio and a new HBO series from Larry David, have 180 days to start production. The biggest question: Would those titles have shot in the state without the credit?
If not, California, and namely L.A., will likely see a bump in shooting numbers. But if they would’ve filmed in the state even without qualifying for incentives, as some naysayers on the increase to the tax credit program said, the numbers will likely hover around their current levels. In that scenario, California would be subsidizing productions that would’ve opted to shoot in the state regardless. The expansion will shower as much as $3.75 billion in credits to the entertainment industry over the next five years. The following six months will serve as an early test of the gambit to rescue production in Hollywood’s longtime home.
Most alarming is the continuing slide in filming for TV, long an anchor of production in L.A. The category posted a decline of over 20 percent in the three-month period from July to September. The main driver of the drop-off is the plunge in reality TV shooting, which saw just 649 shoot days — a sharp retreat (67 percent) from the five-year average. Reality TV shows filming in the region include Dancing With the Stars (ABC), The Price Is Right (CBS), The Valley (Bravo), Dinner Time Live With David Chang (Netflix) and The Secret Lives of Mormon Wives (Hulu).
The one bright spot in the latest report: Feature film production appears to be on the upswing in the state, as The Hollywood Reporter previously reported, with a nearly 10 percent bump year-over-year. The increase may lie in the California Film Commission’s recent pivot toward increasingly tapping independent films to receive tax credits to shoot in the state. Of the 48 titles selected to receive filming subsidies earlier this year, only five were feature films. The shift is a reaction to a broader, years-long trend in which big-budget, studio films are opting to shoot in states and countries with cheaper labor that give more subsidies to host Hollywood. The U.K. has become a favored destination, owing its popularity to allowing above-the-line costs, like pay for directors and actors, to qualify, among other reasons.
“L.A.’s creative industry is too important to let go without a fight,” Sokoloski said. “As part of our ongoing focus on streamlining and enhancing the on-location filmmaking process, we are convening industry listening sessions and using what we learn to improve our service delivery and recommend actionable process and policy improvements to our valued government partners.”
Overall, production appears to be on the rise, with an 11 percent increase compared to the same period last year, according to a report from production tracking service ProdPro that follows global filming trends.
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