Hollywood is increasingly losing influence in the entertainment industry and 2025 could be a pivotal year. Productions are relocating, jobs are disappearing and other regions are offering better incentives, more flexibility and fewer financial hurdles, jeopardising Hollywood's once unchallenged dominance.
Film and television production in Los Angeles is facing massive challenges that are jeopardising its former supremacy. Despite an increase in shooting days in the fourth quarter of 2024, the industry remains under pressure. Natural disasters such as the recent forest fires have destroyed production facilities, delayed filming and weakened the region's economic base.
There are also structural problems: creative stagnation, risky management decisions and a culture of risk aversion are hampering the industry's innovative strength. At the same time, competitor locations such as Canada, the UK and Georgia are increasing the pressure by offering more attractive tax incentives and lower production costs.
Rising production costs in L.A., caused by higher wages, strict authorisation procedures and the consequences of inflation, are driving more production abroad or to other US states. Despite the planned expansion of Californian tax incentives from 330 to 750 million US dollars, experts doubt that this will be enough to make L.A. competitive again.
Without far-reaching reforms and targeted investments, Los Angeles is at risk of losing its central role in the global entertainment industry. 2025 will be a decisive year for the future of Hollywood.
FILMTAKE reports in detail.