Production in Hollywood is experiencing a significant decline, posing a potential 'crisis' or 'critical juncture' for the industry.
Rewritten Article:
Tagline: Hollywood scrambles to stay in the spotlight as competitors lure productions away with generous incentives.
Host: LISTEN UP, MOVIE LOVERS! You've heard the buzz all week about President Trump's idea of imposing a hefty 100% tariff on films made outside the United States. But what does this mean for Hollywood and California's struggling film industry? NPR's Mandalit del Barco dives into the heart of Tinseltown to unravel this tangled web of big-screen bonanza.
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Mandalit del Barco: Once upon a time in Hollywood, movie soundstages buzzed with film and TV production, and you'd be hard-pressed to find a corner untouched by sets and crews. But today, on-location production has plummeted. The nonprofit group FilmLA, which issues film permits in the area, found a 30% decrease in TV and feature film shoots in the first quarter of 2025 compared to the same time last year. That's a low point, y'all. And LA soundstages were only 63% full last year.
Philip Sokoloski: It’s a nail-biting moment for California's film industry.
Mandalit del Barco: Spokesman for FilmLA, Philip Sokoloski, tells us that while the COVID-19 pandemic and Hollywood writers' and performers' strikes surely played a part in the slump, it's not just about unexpected twists. Industry insiders are particularly concerned that states like Georgia, New York, and Louisiana – and even countries like Canada and the U.K. – are dangling juicer incentives for productions than California offers.
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Ravi Ahuja: It's true a lot of production has left the United States, but it's even worse for California.
Mandalit del Barco: Sony Pictures Entertainment CEO Ravi Ahuja shared these thoughts during a panel at the Milken Institute's Global Conference, where other studio execs echoed his concerns. Casey Bloys, the chairman and CEO of HBO and Max Content, explained that the issue boils down to planning and uncertainty. When trying to plan, producers have to enter a lottery and aren't guaranteed the necessary tax incentives for their projects.
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Casey Bloys: The talent is here. The infrastructure is here. But the issue becomes when you're trying to plan, you have to get into a lottery, and you're not sure if your show is going to get the tax break or not.
Mandalit del Barco: As you can imagine, it's a crushing blow to see Hollywood's home state falling behind. But it's not all doom and gloom. Gavin Newsom, California's governor, is stepping in with a proposal to help the president craft a $7.5 billion federal tax credit plan. Newsom has already been pushing to more than double California's tax credit program and has even introduced two bills going through the state legislature that would expand the types of productions eligible for credits.
Pamala Buzick Kim: We need to protect California's industry, its workers, and its legacy.
Mandalit del Barco: Pamala Buzick Kim, a co-leader of the grassroots group Stay in LA, hopes these changes will bring a much-needed reward instead of the punitive tariffs proposed by President Trump. And despite the chaos and uncertainty swirling around the industry, she believes Hollywood's got more than a couple of cards left in the deck. So keep an eye on Tinseltown, folks. It ain't over until the credits roll. Mandalit del Barco, NPR News, Los Angeles. Transcript provided by NPR, Copyright NPR.
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Enrichment insights incorporated sparingly: - Thirty-eight states now offer film incentives, increasing competition. - Georgia and New York have been aggressive in offering substantial film tax credits. - California's tax credit program has been extended and expanded, with the current cap at $330 million annually. - In 2009, California established its film tax credit to counteract "runaway productions" due to more appealing incentives elsewhere.
- The decline in TV and feature film shoots in California recently has been alarming, with FilmLA reporting a 30% decrease in the first quarter of 2025 compared to the same period last year.
- Spokesman for FilmLA, Philip Sokoloski, expressed concerns about the slump, suggesting that while unexpected events like the COVID-19 pandemic and Hollywood strikes played a part, there are other factors at play, including states offering more attractive incentives than California.
- Sony Pictures Entertainment CEO Ravi Ahuja expressed concern during a panel at the Milken Institute's Global Conference about a significant amount of production moving away from the United States, especially California, as other states and countries provide more appealing incentives.
- In an attempt to counter these trends, California's governor, Gavin Newsom, has proposed a $7.5 billion federal tax credit plan to work alongside efforts to more than double California's tax credit program and expand the types of productions eligible for credits.
