California has lost an alarming amount of TV and movie productions to non-American production houses in recent years. The state has dominated the entertainment industry for over five decades and is home to a vast portion of the segment’s soundstages, but the UK has begun eating into California’s market at higher rates.
The coronavirus pandemic coupled with industry strikes and surging competition from a growing list of increasingly popular shooting locations are now threatening Los Angeles’ position as the nexus of world entertainment.
Data from CoStar News and industry tracking service ProdPro indicates that five of the top locations where Hollywood executives plan to film projects through the 2025-2026 filming season are outside the U.S.
America’s highest-ranking filming location (California) ranked 6th on the list of places with Georgia, New Jersey, and New York following. The United Kingdom, Toronto, Australia, Central Europe, and Vancouver are the most popular filming locations as they offer the most attractive filming subsidies.
The Australian and Canadian governments, for instance, can pay up to 40% and 36% of big-budget production expenses respectively, much more than a production studio can hope to get in any U.S. state. From 2017 to 2024, incentive programs for big-budget productions increased by 39% across the globe.
Among other things, these entertainment subsidies have played a major role in pulling TV and movie productions out of the U.S. In addition to subsidies, incentives, and tax credits, some cities also promise less costly filming conditions to make them even more attractive to production studios.
Cumulatively, a whopping 120 jurisdictions worldwide offer such incentives, according to Entertainment Partners’ Senior Vice President of Production Incentives Joseph Chianese. Many of them offer production incentives that are easier and more efficient to use compared to California, the historical hub of entertainment.
Also a California Production of Entertainment Industry Stakeholders member, Chianese says that even though California has led the entertainment industry for a century, has iconic locations, and an ‘unmatched workforce,’ states and nations with more robust production incentives are putting immense pressure on the Golden State.
Industry stakeholders like Chianese recently formed the coalition to lure production companies back to California. The state plans on doubling its production tax incentives in the summer to pump around $3.75 billion in tax credits into the local television and film industry over the next half-decade. Los Angeles has also implemented new and updated programs and discounts to boost film production in the city. It also has plans to install high-tech soundstages to lure production studios back.
For companies like Momo Inc. (NASDAQ: MOMO) that engage in TV and movie production, the most rational decision to make is to choose locations that offer cost savings and other benefits. The efforts being made by California to lure movie production back to the state are therefore commendable.
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