Hollywood is facing a significant crisis, with a 22% drop in production activity during the first quarter of 2025 compared to the same period in 2024. This steep decline, according to FilmLA’s recent report, highlights a growing trend of productions leaving Los Angeles for more cost-effective shooting locations in states like Georgia, as well as international hotspots like the United Kingdom.
What’s Behind the Decline in Hollywood Production?
The film industry has long been the lifeblood of Los Angeles, bringing billions of dollars to the local economy and creating countless jobs for the entertainment workforce. However, in recent years, rising production costs in California, coupled with tax incentives and subsidies offered by other regions, have encouraged studios to look beyond Hollywood’s iconic studios.
The recent 22% drop in shoot days marks a troubling trend that has industry insiders deeply concerned about the future of Hollywood. The rallying cry for the “Stay in LA” movement, held on April 6, 2025, underscores the urgent need for local producers and crews to advocate for the city’s creative infrastructure.
Impact on Jobs and Local Economy
The ripple effects of this decline are being felt by workers across the entertainment industry. Set builders, musicians, and postproduction crews are among those who face uncertain futures as productions move out of state and abroad. As fewer films are made in LA, the community that has thrived on these productions is left to deal with the consequences.
The job loss and economic downturn caused by this mass exodus are starting to raise alarms, with some fearing that Hollywood could eventually become the next Detroit—a once-great industry hub left in the dust by shifting economic forces. Industry experts are urging for better trade deals and incentives to ensure that Hollywood remains competitive in the global entertainment market.
Industry Leaders Speak Out
Prominent figures in the industry, including Ted Sarandos, the CEO of Netflix, have weighed in on the crisis. Sarandos, along with other leaders from top studios, has emphasized the need for updated incentives to retain film production within the US, particularly in Los Angeles. Hollywood has long been synonymous with the film industry, but as production costs soar and international locations offer appealing financial breaks, that status is now under threat.
Social media, especially X, has become a hotbed for discussions on the issue. Posts from fans, workers, and industry professionals alike are expressing deep concern about Hollywood’s future, with some even claiming that the city could lose its iconic status as the entertainment capital of the world.
What Does the Future Hold for Hollywood?
The crisis in Hollywood is forcing industry leaders to take action. Ted Sarandos and others have publicly stated that new policies are necessary to reverse the trend and attract production back to LA. However, the issue goes beyond simple economics—there’s a growing concern that the creative landscape of Hollywood will begin to change if productions increasingly opt for cheaper, less creative-driven locations.
Despite the challenges, Hollywood remains a central hub for the entertainment industry. Many argue that it’s not just about cost savings but about maintaining the creative legacy and the historic charm of the iconic studios and locations in Los Angeles. As the industry continues to evolve, it will be critical for local governments and studios to find a balance between economic viability and creative integrity.
Will Hollywood Bounce Back?
It’s unclear whether Hollywood will be able to recover from this slump. What is clear, however, is that the pressure is on for policy changes that will enable Los Angeles to remain a leading force in the entertainment world. As the film industry continues to face fierce competition from other cities and countries, the need for new incentives and strategic trade deals will be more important than ever.
For now, all eyes are on the future of Hollywood, as both filmmakers and workers alike continue to grapple with the evolving nature of the entertainment industry. Will Los Angeles remain the global entertainment capital or face a future as a mere shadow of its former self?
Q1 2025 shoot days in LA down 22% from last year. Hollywood needs action now to save jobs and our industry. #StayInLA #FilmLA
— FilmLA (@FilmLA) April 15, 2025
