L.A.’s production woes worsen as soundstages go unused at historic levels

As a cinephile, I can’t help but reminisce about the bustling days when LA’s soundstages were teeming with activity, almost at full capacity, as the demand for streaming content peaked to unprecedented heights.

However, last year saw an average annual occupancy rate decrease to 63%, which suggests that Hollywood’s production slowdown continues, as indicated by recent findings from a report.

2023 experienced an average regional occupancy rate of 69% for filming, as reported by FilmLA, a nonprofit that monitors on-location shoot days in Greater Los Angeles. However, this was a challenging year due to prolonged strikes by writers and actors, which significantly impacted the local production industry.

The strike concluded, yet manufacturing didn’t bounce back as anticipated; instead, the figures for 2024 fall significantly short of the usual 90%, a percentage that was maintained between 2016 and 2022.

In response to deteriorating financial conditions for films and television series, entertainment firms are reducing their expenditures. Many productions that have resumed work have chosen locations outside their home states or countries, where expenses are cheaper or incentives are more favorable.

As a movie lover delving into the heart of Hollywood, I’ve learned that the insights I’m about to share come from a comprehensive study conducted by FilmLA. This research was no small feat, involving no less than 17 key players – the big legacy studios, along with some prominent larger independent ones. Together, they control over 80% of the staggering 6.6 million square feet of certified stage space in Los Angeles, making them the backbone of our beloved city’s cinematic landscape.

The report also shed additional light on the adverse impact of the strikes.

In the most current year with available data, which is 2023, a total of 1,225 film projects were completed at those participants’ facilities, equating to only 8,671 shooting days. This is a significant decrease of nearly 42% compared to the production levels in Los Angeles during the pre-pandemic year of 2019. Interestingly, episodic television series that once accounted for approximately 30% of the production in L.A., now represent only about 20%.

In an effort to draw film production back to California, state lawmakers are suggesting they boost the film tax credit, potentially offering a 35% refund for eligible expenses related to movies and television shows filmed within the Los Angeles area.

Governor Gavin Newsom additionally advocates for expanding California’s film and television tax credit scheme. This suggestion aims to significantly boost the yearly budget of this program, with the intention of enabling California to match the competitive edge offered by other states’ tax benefits.

The issue with California’s tax credit program lies in its failure to include expenses often referred to as “above-the-line,” like actor salaries, which make up a significant chunk of film and television production costs.

Regardless, it was recently revealed by the California Film Commission that an unprecedented 51 movies will be granted a state incentive as part of their latest round. The majority of these projects are independently produced films.

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2025-04-03 22:31

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