By Kurtis Lee
The hardships have turned into a distressing, repeating narrative in Hollywood.
A script supervisor relies on a food bank every fortnight. The cinematographer has relocated to Georgia for improved filming options. An art department coordinator is now seeking administrative roles to manage rent.
The economic forecast for the Los Angeles region, with a larger populace than many states, has been overshadowed in recent years by incidents that have disrupted the entertainment industry. An oversaturated market resulted in a shake-up among direct-to-streaming services. The COVID-19 pandemic then halted production. Lastly, last year’s writer and actor strikes endured for months, allowing studios time to consider filming in alternative locales that offer significant tax breaks.
When the strikes concluded, those in Hollywood hoped their calendars would fill up once more. However, for many, the situation only deteriorated.
According to a report from FilmLA, the city’s official film office, film production levels saw a 5% drop in the third quarter of 2024 compared to the same period in 2023.
Paul Audley, the president of the organization, remarked in the report that just a few months earlier, there was optimism for recovery — anticipating a rebound from what he termed “the strike effect.”
“Instead, we observed a regression and a stance of stagnation as we approached the fall season that could determine the year’s outcome,” Audley stated.
Since the Writers Guild of America strike began in May 2023, jobs in motion pictures and sound recording within the Los Angeles area have seen a 15% decrease, as indicated by the Bureau of Labor Statistics.
For Deborah Huss Humphries, the recent months have proven especially tough.
As a makeup artist who established her career on various movie and commercial sets across Los Angeles, Huss Humphries recalls the times when she had to decline projects due to a busy schedule. Over three decades, she has witnessed the industry’s transformation, with productions progressively leaving the city, then the state, and expanding overseas.
During lean periods, she managed to stay afloat. However, she now finds it challenging, having begun to use her savings over the last three years to meet her monthly costs.
“What I keep telling myself is, ‘Alright, there has to be some relief coming soon,’” she shared.
These days, her confidence is wavering.
Patrick Adler, co-founder of Westwood Economics and Planning Associates, which researches Hollywood trends, perceives the strikes as a pivotal moment.
He pointed out that settlements from the strikes typically lead to more expensive productions. Moreover, Adler noted that the work stoppages compelled studio leaders to reassess their expenses and consider filming in other areas, like New Mexico and Georgia.
“Living costs in LA have risen compared to other potential filming sites, creating increasingly significant cost disparities between LA and other choices,” said Adler, who is also an assistant professor at the University of Hong Kong.
A recent report from Westwood and the Otis College of Art and Design revealed that in 2013, the film and television sectors constituted 64% of the wider entertainment industry in Los Angeles County. That figure has decreased to 52%. (The areas gaining jobs in the report include video game development and spectator sports.)
To counteract this trend, Governor Gavin Newsom and Los Angeles Mayor Karen Bass introduced a plan in October to more than double the state’s film tax incentive program to $750 million each year. If approved by state lawmakers, this initiative could begin in July.
In a statement via email, Bass expressed, “The entertainment industry is fundamental to our city’s foundation, and we will persist in doing everything we can to assist the numerous Angelenos who drive it.”
This past summer, Bass formed a council comprising leaders from the entertainment sector to explore methods to retain more productions locally and enacted a directive aimed at streamlining permitting processes required for filming in the city. She referenced data from the Los Angeles County Economic Development Corp. that highlights the entertainment sector as contributing over $115 billion annually to the regional economy, generating 681,000 jobs.
Many of those roles emerge from a broader ecosystem of workers, such as caterers, dry cleaners, and florists, who are heavily dependent on local filming, according to many local officials.
However, other regions are vigorously competing to attract productions.
Georgia offers an uncapped tax incentive program that has delivered billions to Hollywood studios. Meanwhile, New Mexico officials have successfully enticed executives with tax incentives alongside reminders of the state’s picturesque landscape and its closeness to California.
Netflix, for instance, has poured $575 million into New Mexico productions since 2019, including scenes for “Stranger Things.” Additionally, last summer, the company announced a major expansion of its Albuquerque studios, which includes, among various projects, four new soundstages.
According to a survey conducted by The New York Times, at least 38 states offer some type of tax incentive.
Despite the potential realization of the tax credits in California, some industry insiders worry that the damage may already be irreversible.
Vince Gervasi, president of Triscenic Production Services, which provides storage solutions for major studios and operates multiple soundstages, said that assistance should have arrived much earlier.
“People have faced severe financial devastation,” remarked Gervasi, whose company usually earns $25 million a year in a suburb north of Los Angeles — a figure that dropped by $9 million last year.
Gervasi mentioned that several competitors have exited the industry or relocated from California.
“They had no alternative,” he stated.
