Hollywood Film and TV Production Faces Challenges Amid Structural Shifts and Competition
Post-pandemic strikes combined with structural technology shifts have contributed to a reduction in Los Angeles's dominance as a hub for film and TV production. Increasingly, more production work is being conducted in other cities such as Atlanta, Toronto, London, and Budapest.
California has sought to encourage filming through incentives, exemplified by $25 million allocated for Season 2 of 'Fallout' and $166 million for Season 3, both shot in LA. Despite these efforts, LA's share of global film and TV production dropped from 21.9% in 2022 to 18.3% two years later, and the number of shooting days in LA fell by over 20% from 2024 to 2025. Additionally, pension contributions to the industry's motion picture plan have declined by about one-third over three years.
Infrastructure supporting the industry in LA is shrinking, with closures including a North Hollywood costume warehouse, several camera and equipment rental storefronts, and a major car lot that once served industry needs experiencing collapsed demand.
Technology platforms and streaming services have reshaped the business landscape. Companies such as Netflix and Amazon now play significant roles as producers and distributors, with competition among streaming services affecting traditional business models. Currently, there are around 120 production centers worldwide.
Economists are divided on solutions; while some doubt that incentives alone can resolve the challenges, others advocate for stronger intellectual property rights to ensure content creators receive more value.
Despite the concerns, Los Angeles remains a center for high-paying jobs in marketing, sales, and distribution within the entertainment industry. The sector is expected to downsize and reshape rather than disappear entirely.
Officials and industry figures highlight incentives as a positive step but call for careful policymaking in light of intensified global competition.
