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Los Angeles Film Production Shows Mixed Signs Amid Tax Credit Changes

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Los Angeles Film & TV Production: A Complex Turnaround

"Hollywood is finally turning a corner with more productions and more jobs."
— Mayor Karen Bass, Los Angeles

A synthesis of recent reports indicates that film and television production in Los Angeles is experiencing a complex period, characterized by both a recent uptick in shoot days for certain sectors and a broader, longer-term decline in overall activity. The expansion of California's film tax credit program has been cited as a contributing factor to recent production increases, while industry structural shifts and competition from other regions continue to pressure the local market.

Recent Production Data

According to FilmLA, Los Angeles recorded a roughly 10% increase in shoot days in the first quarter of 2026 compared to the previous quarter. Feature film production showed a 52% year-over-year increase. However, total shoot days for the quarter reached 5,121, a figure nearly 30% below the five-year average. The region is currently on track for the second-lowest annual filming levels on record.

Other reports provide a longer-term view. Luminate's Annual Report, published on January 21, 2026, indicated a 24% year-over-year decrease in major scripted film and TV projects shooting in Los Angeles. FilmLA data from a separate reporting period showed:

  • 16.8% year-over-year decline in feature film shooting
  • 14.7% decrease in television shoots
  • 14.5% drop in commercial shoots

Total shoot days in Los Angeles for a recent 12-month period were 19,694, down from 36,792 three years prior—a stark illustration of the ongoing contraction.

Impact of California's Expanded Tax Credit Program

California's revised film and TV tax credit program, which increased annual incentives from $330 million to $750 million, has begun funding new projects. The first selected titles are now in production.

"While it's still too early to make predictions... the increase in Shoot Days gives hope for a broader rise in production activity and points to the California Film and Television Tax Program's growing impact on local job creation."
— Denise Gutches, CEO, FilmLA

According to FilmLA, these projects accounted for nearly 7% of all shoot days, 22% of feature production, and 17% of TV production during the most recent quarter. FilmLA noted that nearly a quarter of feature shoots came from tax-credit-receiving titles.

The California Film Commission has allocated specific tax credits to several productions:

Production Tax Credit Location Fox's Baywatch reboot $21 million Venice Beach Universal's Snoop Dogg biopic $17 million Los Angeles Ang Lee's Gold Mountain $7.7 million Sacramento County

Sector-Specific Declines

Despite the overall quarterly increase, specific sectors experienced notable drops. TV production fell 28% quarter-over-quarter and is over 60% below the five-year average. Reality TV shoot days declined 52% compared to the prior quarter, attributed to shows filming elsewhere and a contraction in unscripted content.

Luminate's data suggested a general downward trend in Los Angeles production over a six-year period, with a temporary increase in 2022 attributed to streaming production.

Competition from Other Regions

Production activities are increasingly relocating from Los Angeles to other areas. Major studios including Netflix, Paramount, and Lionsgate have established new production facilities or leases in New Jersey. Other states such as Georgia, Louisiana, New Mexico, and Illinois are also attracting projects through tax incentives. New York is maintaining and seeking to expand its entertainment industry presence.

Internationally, Luminate's report indicated a 12 percentage point drop over five years in scripted features and TV projects shooting in the United States. Canada and the United Kingdom have seen increased filming counts, with year-over-year rises of 10% and 11% respectively in the fourth quarter, according to ProdPro.

"State and local officials have taken the industry for granted for a very long time."
— Victor Coleman, CEO, Hudson Pacific (operator of Sunset Bronson Studios)

State and Local Policy Responses

Governor Gavin Newsom signed a bill in July to increase film and TV project incentives from $330 million to $750 million annually. This was described as a preliminary step, with further efforts planned to reduce administrative hurdles for filmmakers.

Mayor Bass's office released a list of actions on January 15 to simplify filming in Los Angeles. These include:

  • A proposal to lower fees for shooting at Griffith Observatory
  • A pilot program for a tiered permitting structure for low-impact productions
  • Improved response times for application reviews
  • Other operational updates

Broader Industry Context

The streaming business has adopted a global distribution strategy. Studio lots in Los Angeles are offering spaces to influencers to offset reduced orders for TV episodes and scripted series. Some studio operators are consolidating assets, selling soundstage complexes without anchor tenants, and focusing on core properties. For instance, the operator of Radford Studio Center, which was sold by CBS in 2021, has reportedly defaulted on a $1.1 billion loan.

The number of movies produced for wide theatrical release (2,000 screens or more) has decreased from 120 in 2019 to 112 in 2025, according to Comscore. Overall production spending declined to an estimated $41.8 billion, an 8% decrease year-over-year, per ProdPro.

The potential sale of Warner Bros. is a subject of discussion within the industry, with prospective buyers including Netflix's Ted Sarandos and Paramount's David Ellison suggesting increased job opportunities and film production if their bids are successful.