## Lights, Camera, Modest Recovery? California Entertainment Industry Shows Signs of Life, But Work Remains Lackluster The California sun may be shining, but the Hollywood spotlight is still flickering. While reports suggest a modest uptick in entertainment industry work, the reality for many union members is far from a full-blown comeback. Industry publications like The Hollywood Reporter are painting a picture of cautious optimism, with production levels lagging behind pre-pandemic highs. But behind the headlines, a complex story unfolds – one of navigating a new normal in a landscape forever altered by the pandemic. We delve into the latest data, exploring the nuances of this “recovery” and what it truly means for the future of work in California’s entertainment sector.
The Exodus of Hollywood
What was once a thriving industry in Los Angeles for film production has become a ghost town. The decline is attributed to a combination of factors, including the COVID-19 pandemic, the strikes, and the lack of competitive incentives and rebates offered by the state. According to FilmLA, the main reason for the sluggish rebound in production levels is a double-digit drop in television shoots compared to the same period last year.
Present levels look even worse over a five-year period, with filming in the category — long a mainstay and anchor of production in the region — trailing its five-year average by more than 32 percent. The report from FilmLA reflects the first full quarter after the resolutions of the strikes, with 6,823 shoot days, representing a roughly 9 percent decline year-over-year and more than a 20 percent decline from the five-year average.
A Lack of Competitive Incentives
California’s film incentives are estimated to be one of the worst in the country, with a total of $300 million spent annually. This lack of competitiveness has led to the exodus of productions to other states with more favorable rebates. As a result, many productions have moved out of the state, with most to all studio films leaving for location purposes and tax incentives offered by other states and countries.
According to FilmLA, the category of commercial production slipped nearly 10 percent year-over-year and more than 33 percent below the five-year average, with filming for smaller, lower-cost shoots, such as documentaries, music videos, and still photography, falling by roughly 5 percent. This decline has resulted in a significant loss of revenue for the state, with an estimated $9 billion lost in film production and related revenue in 2023.
The Need for Reform
The article suggests that the California film industry needs to reform its incentives and rebates to attract more productions and create jobs in the state. To fix the issue, California needs to bring back the bigger budget films, increase incentives, and match the incentives offered by other states and countries. Lobbying for an additional $50 million in added incentives will do nothing to address the issue, and the state needs to take a new approach that prioritizes competitiveness and offers more attractive incentives.
The Rise of Alternative Locations
The decline of the California film industry has led to the rise of alternative locations, such as Georgia, which is experiencing film production growth faster than the state can keep up with. Atlanta, the “Hollywood of the South,” is becoming a major hub for film production, with more productions, including TV, film, streamers, and more, shooting in Georgia in 2023 than in Hollywood for the first time.
Georgia on the Rise
Georgia’s film production growth is expected to continue, with productions flocking to the state for its favorable tax incentives and rebates. The state’s film industry is booming, with a significant increase in production levels, and it’s becoming a major competitor to California.
A New Player in the Game
The rise of alternative locations highlights the need for California to adapt and offer more competitive incentives to attract productions back to the state. The success of alternative locations provides an opportunity for California to reform its incentives and rebates, making it a more attractive location for film productions.
A Chance for Reform
The success of alternative locations provides an opportunity for California to reform its incentives and rebates, making it a more attractive location for film productions. By learning from the success of alternative locations, California can take steps to revitalize its film industry and attract more productions to the state.
The Future of the California Film Industry
The future of the California film industry looks uncertain, with the decline of production levels and the rise of alternative locations. However, there is still hope for the industry, and with reform and adaptation, California can attract more productions and create jobs in the state.
Bring Back the Bigger Budget Films
The article suggests that California needs to bring back the bigger budget films to revitalize the industry. The success of The Mandalorian, a show produced in California, is seen as a starting point for this effort. By attracting more bigger budget films, California can create jobs and stimulate economic growth in the state.
Increase Incentives
California needs to increase its incentives to attract more productions to the state. The current incentives are estimated to be one of the worst in the country, and the state needs to match the incentives offered by other states and countries to be competitive. Lobbying for an additional $50 million in added incentives will do nothing to address the issue, and the state needs to take a new approach that prioritizes competitiveness and offers more attractive incentives.
A New Approach
The article concludes that the California film industry needs a new approach, one that prioritizes competitiveness and offers more attractive incentives to attract productions back to the state. By reforming its incentives and rebates, California can revitalize its film industry and create jobs in the state.
Conclusion
The New Normal: A Modest Growth Amidst Languishing Production Levels in California Entertainment Industry
The recent report from The Hollywood Reporter reveals a modest growth in the California entertainment industry, despite production levels lagging behind pre-pandemic numbers. Key takeaways from the article highlight a gradual recovery, with industry insiders attributing this growth to increased demand for content, improved safety protocols, and a more stable workforce. Notably, the resurgence of streaming services and the emergence of new players in the market have contributed to this growth. However, the industry still grapples with lingering production delays, talent shortages, and budget constraints, underscoring the complexities of navigating a post-pandemic entertainment landscape.
The significance of this development cannot be overstated, as it underscores the industry’s resilience and adaptability in the face of unprecedented challenges. The modest growth serves as a beacon of hope for a sector that has faced significant disruption and uncertainty. As the industry continues to evolve, it is imperative that stakeholders prioritize innovation, collaboration, and risk-taking to mitigate the lingering effects of the pandemic and capitalize on emerging opportunities. Looking ahead, the future holds promise for new technologies, diverse storytelling, and fresh talent, which will undoubtedly shape the entertainment landscape for years to come.
As the entertainment industry hurtles toward a new normal, one thing is clear: the status quo is no longer tenable. The modest growth in California entertainment industry work serves as a wake-up call for the industry to innovate, adapt, and push boundaries. As we look to the future, we must ask ourselves: what will be the hallmark of a thriving entertainment industry in a post-pandemic world? Will it be characterized by creative risk-taking, technological innovation, and a commitment to diversity and inclusion? One thing is certain – the new normal will be shaped by those who dare to dream big, take bold risks, and push the boundaries of what is possible.