Hollywood Studio Crisis Is an Industry Wide Wake Up Call

Every major news and media outlet has recently told this story. Last year was the worst for on-location filming in Los Angeles since tracking began 30 years ago apart from pandemic-hit 2020. Of all the TV show and feature films that North American audiences watch, only one-fifth are now made in California. This is from a state that has the fourth biggest economy in the world only behind Germany, China and The United States.

This is because Hollywood is facing intense competition for film production from domestic rivals such as Atlanta and New York. With international challengers such as Australia, Britain and Canada. All offering more aggressive financial incentives. California’s politicians stand accused of resting on their laurels too long. But the blame can be passed around. I think it is because the studios thought they were too big to fail. They were wrong

Then there is the Trump Film Tarriff plan that has everyone scratching their heads. This would be to put a 100% tariff on some part of films shot out of country. No plan and what would be taxed or how it would be reinforced. Hollywood is telling Washington to be competitive with incentives so as not to start a trade war. My thoughts are this will eventually be watered down or abandoned all together. A needless distraction on the way to solving the problem.

How bad is it in California? Average occupancy rates for most stages were down by over 20% and shoot days declined by 22% in 2024 according to the Hollywood Reporter. The malaise threatens to send the movie ecosystem into a potentially death spin. So that means there are opportunities to fill that void. I see a future of regional film studios that could stimulate several film communities all over the world. Including my home here in South Florida, something Tel Air Interests has been touting for years.

Netflix announced a one-billion-dollar investment to produce 20 films and tv series in Mexico annually over the next four years. Recently Texas passed a bill that would double the money spent to lure film and TV production to the Lone Star State. Now is the time that Florida leaders see the opportunity to bring major filmmakers to the Sunshine State.

Much like the shake up of the Record Business around the turn of the century. The film and television communities are in a flux and need to re-examine the landscape of the industry. They also need to re-commit to improving the quality of content they are providing. I also believe the lack of creativity in the major studios are also leading to the decline. This can only be improved by providing more opportunities for different voices to be heard.

If it feels empty in Hollywood California on the soundstages today. That is because the wake-up call for the Film and Television Industry has been made. Is Florida listening?