<\/p>\n
When actor and filmmaker Mel Gibson grumbled during a recent podcast<\/u><\/a> appearance that it was cheaper to fly his entire U.S.-based crew to Bulgaria for three days than to shoot just one day in California, he echoed the same eulogy sounded across three national outlets. The Wall Street Journal called Los Angeles\u2019 entertainment economy a \u201cdisaster movie<\/u><\/a>.\u201d The celebrity.land warned that California is \u201cthe next Detroit<\/u><\/a>.\u201d And UnHerd columnist Joel Kotkin (a contributing writer to L.A. Times Opinion) noted that L.A. is losing not only its creative workforce<\/u><\/a> but its visitors.<\/p>\n All of that may be true in part, but every obituary of Hollywood misses the same plot twist.<\/p>\n Yes, traditional studio filmmaking is shrinking as tax incentives instituted in other states and countries lure productions away. But Los Angeles is no longer defined by only its soundstages. It\u2019s defined by its talent \u2014 and the talent in California is not vanishing; it\u2019s evolving.<\/p>\n Walk through Culver City or Burbank and cranes still fill the skyline, not to build backlots but for construction of new media campuses, post-production labs and tech-meets-storytelling start-ups. The next generation of production companies \u2014 digital-first studios, brand-funded entertainment firms, short-form production collectives and podcast networks \u2014 is being established here. They may not yet be household names, but their reach is already global.<\/p>\n During the early days of radio and television, announcers often opened shows with lines like \u201cbrought to you by Purina\u201d or \u201cpresented by Colgate.\u201d Today, that tradition of brand-backed storytelling has evolved into a modern ecosystem of small creative businesses: lean teams producing high-impact series for social platforms, streaming channels and direct-to-brand partnerships like Apple\u2019s \u201cShot on iPhone\u201d campaign. They hire editors, composers, camera operators and writers, many of the same professionals once employed by legacy studios.<\/p>\n One of the fastest-growing creative spaces in L.A. is immersive and mixed-reality studios, with companies designing fresh experiences that blend physical and virtual spaces through VR, AR, domes, projection mapping and interactive installations. Audiences want experiential storytelling that you can enter, not just watch. Cheaper VR and AR hardware, immersive tools and advanced 3-D software make high-quality work possible.<\/p>\n As Hollywood evolves, there\u2019s growing demand for new formats that bridge tech, story and place. Brands and venues are crafting \u201cInstagram-able\u201d activations to draw people inside and investors are backing the trend, with immersive production companies including Meow Wolf, Illuminarium and Cosm planning venues across Greater Los Angeles.<\/p>\n In 2024, one of the fastest-growing segments of California\u2019s entertainment economy was branded and creator-led storytelling, a sector that didn\u2019t even exist 20 years ago.<\/p>\n The infrastructure of creativity is also shifting. Affordable production technology has liberated a generation of filmmakers from the soundstage. Remote editing, virtual 3-D sets <\/u><\/a>and cloud-based collaboration allow stories to be designed and produced from anywhere, yet California remains the command center \u2014 the place where talent converges.<\/p>\n Over the last few years, podcasts have also become a powerful new lane for top talent, offering both creative freedom and significant audience reach. And in that time, the space has exploded to become a serious extension of the entertainment industry.<\/p>\n This is a reminder that L.A. creatives adapt faster than anyone else, constantly reinventing how stories are told and consumed. These innovations are fueled by the city\u2019s mixture of talent, technology and storytelling traditions.<\/p>\n Another truth rarely appears in the gloomy headlines: The world still looks to Los Angeles for cultural leadership. The studios may have competition throughout the world, but the state continues to export its imagination. From animation to gaming, from music videos to YouTube empires, California remains the global heartbeat of storytelling.<\/p>\n Recent comparisons to Detroit misunderstand what makes each city remarkable. The Motor City\u2019s decline was largely due to companies offshoring innovation to cheaper factories abroad. Los Angeles\u2019 challenge is the opposite: an overabundance of innovation that is decentralizing faster than anyone expected. The industry is not dying; it is diversifying.<\/p>\n This moment, uncomfortable as it may be, is exactly what Hollywood needs. Periods of contraction force creative focus. They strip away excess and invite reinvention. The future of entertainment will not be dictated by geography but by imagination, and that is where California has always had a home-field advantage.<\/p>\n Mel Gibson may be right that it is cheaper to film in Bulgaria. But the world doesn\u2019t go to Bulgaria to find talent. Talent still calls California home.<\/p>\n Rachel Zaslansky Sheer<\/i><\/a> and <\/i>Lori Zuker Briller<\/i><\/a> are the co-authors of the upcoming book “<\/i>Straight from the Grapevine<\/i><\/a>.”<\/i><\/p>\n