California’s Film and TV Industry Faces Severe Decline

Categories: California Business NewsCalifornia EconomyCalifornia LifestyleCalifornia News

California's film sets sit empty as the industry faces significant challenges.

News Summary

California’s film and television industry is experiencing a dramatic downturn, with around 40,000 job losses reported in 2023 due to strikes by writers and actors. Production levels have plummeted, and California Governor Gavin Newsom is proposing significant increases to tax credits to attract productions back to the state amidst fierce competition from other locales offering more favorable incentives. Local initiatives are emerging to restore filming and bolster industry support as the future of the entertainment sector remains uncertain.

California is witnessing a significant decline in its film and television industry, with job losses continuing to mount in the wake of strikes in 2023 by writers and actors. The U.S. Bureau of Labor Statistics reports that approximately 40,000 jobs have been lost this year alone, marking a troubling trend for an industry long considered a cornerstone of the state’s economy. The repercussions of these labor disputes have left production levels and employment in a precarious state.

FilmLA data indicates that television production in the greater Los Angeles area has experienced a staggering 58% decline since its peak in 2021. The drop in the number of shooting days is striking; from 18,560 days in 2021, the figure decreased to just 7,716 in 2024. Additionally, there was a 22.4% drop in on-location production in Los Angeles during the first quarter of 2025 compared to the same period in the previous year, showcasing a concerning trajectory for the local film and television sector.

In response to this downturn, California Governor Gavin Newsom has proposed increasing the state’s annual film and TV tax credits from $330 million to $750 million. This initiative aims to revive the industry and attract productions back to California, as competing states and countries are offering substantially more favorable tax incentives. Some European countries are known to provide tax breaks as high as 40%, prompting many productions to relocate.

Amid these challenges, individuals within the industry are grappling with their futures. Phil Mangano, a film and television editor, has turned to alternative employment, applying for a position at Costco due to financial instability caused by the lack of work in film. Similarly, freelance sound utility workers are branching out to find new job opportunities or are taking on side gigs to manage their financial situations after the strikes. Although some, like Heather Fink, have managed to secure projects, such as a job with “Grey’s Anatomy,” many crew members are still struggling.

The Otis College report highlights that as of 2024, employment in California’s entertainment industry remains 25% below the peak observed in 2022, thanks to earlier pandemic disruptions. The state saw a 42% decrease in shooting days compared to 2022, further illustrating the industry’s current struggles. While there were nearly 15,000 new jobs added last year, this increase has not been sufficient to recover from the substantial losses incurred during the labor strikes.

Despite some recovery efforts, experts suggest that the industry may be settling into a new normal, characterized by production levels that are lower than pre-strike periods. Productions increasingly favor locations that offer better tax incentives, leading to a consistent decrease in work based in California.

Recognizing the severity of the situation, a local initiative called “Stay in L.A.” has been launched, aimed at promoting emergency measures to restore filming and enhance local productions. This initiative seeks to reverse the trend of declining productions in Los Angeles and bring attention to the growing need for policies that support the entertainment industry in California.

As these changes unfold, the future of California’s film and television industry hangs in the balance, with stakeholders advocating for strategic responses to the challenges presented by recent labor disputes and the competitive landscape posed by other filming locations around the globe. Continued monitoring of job statistics and production levels will be essential in the coming years to determine the effectiveness of enacted measures and the overall recovery of the industry.