Los Angeles, once the bustling hub of film and television production, is now facing a historic challenge as soundstages sit empty at an alarming rate. The demand for streaming content, which once filled these iconic stages to nearly full capacity, has plummeted in recent years. A new report from FilmLA, a nonprofit organization tracking on-location shoot days in the Greater Los Angeles area, reveals that the average annual occupancy rate dropped to a mere 63% in 2024, marking a significant decline from the 69% seen in 2023.
A Closer Look at the Decline
The decline in production levels can be traced back to the dual strikes by writers and actors in 2023, which left the local production economy in shambles for months. Despite the strikes coming to an end, the anticipated resurgence in production did not materialize. The 2024 numbers are a far cry from the heyday of 2016 to 2022, when the average occupancy rate stood at a robust 90%. Entertainment companies, facing increasingly challenging economics for movies and TV shows, slashed spending, leading to a mass exodus of productions to other states and countries with more favorable costs and incentives.
The FilmLA study, which included 17 studio participants representing over 80% of the 6.6 million square feet of certified stage space in Los Angeles, shed light on the far-reaching impact of the production slowdown. In 2023, the participants hosted 1,225 projects totaling just 8,671 shoot days, a staggering 42% decrease compared to pre-pandemic levels in 2019. Episodic television series, which once dominated production in L.A., now make up only 20% of the total output, down from 30%.
Efforts to Revitalize the Industry
In a bid to lure production back to California, state legislators are proposing an increase in the film tax credit program to cover up to 35% of qualified expenditures for movies and TV series shot in the Los Angeles region. Governor Gavin Newsom has also called for a boost to the state’s film and TV tax credit program, more than doubling the annual allocation to help California compete with other states offering lucrative tax incentives.
Despite California’s tax credit program not covering above-the-line costs like actors’ pay, which constitute a significant portion of movie and TV budgets, the California Film Commission recently announced a record 51 films shooting in the state would receive government incentives. Most of these productions are independent films, signaling a potential shift in the industry landscape.
In the face of these challenges, industry experts emphasize the need for innovative solutions and a collaborative effort to revitalize Los Angeles’ production sector. As the entertainment capital of the world grapples with unprecedented changes, the resilience and adaptability of Hollywood will undoubtedly play a crucial role in shaping its future.
