Hollywood Production Faces Significant Decline

Categories: Business NewsEntertainmentNews

An empty soundstage reflecting the challenges faced by Hollywood production.

News Summary

Hollywood production is experiencing notable declines, with a 6.2% decrease in on-location shoot days in Q2 2025 compared to the previous year. Feature films fell by 21.4%, while television production grew by 17%, still below the five-year average. Despite legislative support for film and TV tax credits, challenges like fierce competition and strikes have hindered recovery, raising concerns about talent and job losses in California’s entertainment industry. The future remains uncertain as industry experts caution about the ongoing downward production trend.

Los Angeles – Hollywood production faces significant declines in the second quarter of 2025, with a 6.2% decrease in on-location shoot days compared to the same period last year. A total of 5,394 shoot days was recorded from April to June 2025, down from 5,749 in Q2 2024, and 32.5% lower than the five-year average.

Feature film production has seen a major downturn, decreasing by 21.4% with only 553 shoot days this quarter. Commercial production also suffered, with a decrease of 15.3%, bringing the total to 692 shoot days. In contrast, television production experienced growth, recording an increase of 17% compared to last year, resulting in 2,224 on-location shoot days. However, despite this growth, television production levels in Q2 2025 remain 32.6% below the five-year quarterly average.

Television dramas saw a modest production increase of 9.4%, while reality TV content surged by 29.5%. Pilots demonstrated the most remarkable growth, skyrocketing by 364.7%. Nonetheless, TV comedies have faced a noteworthy decline of 41.5% compared to the previous year.

Overall, the production slate for Q2 2025 is anticipated to generate over $302 million in wages for California workers, contributing significantly to the state’s economy. In addition, the “other” category, which encompasses various smaller productions, also experienced a decline of 17.3% from last year.

The entertainment industry in California received a financial boost from recent legislative changes to the film and TV tax credit program. The cap for this program was raised from $330 million to $750 million, aimed at attracting more productions to the state and preserving local jobs. A recent report from the California Film Commission indicated that this new round of the tax credit program will support 48 upcoming movie projects, which are expected to employ over 6,500 cast and crew members along with 32,000 background performers.

Despite this support, production levels have been severely impacted in recent months. In the first quarter of 2025, L.A. production was down by 22% from the previous year, with only 5,295 shoot days logged. Television production saw an even steeper decline of approximately 30% year-over-year, and a staggering 50% decrease compared to the five-year average. The total number of TV pilots produced fell to an all-time low, with just 13 pilots filmed in L.A. in the last quarter.

Feature film shoot days also diminished, shrinking to 451 in Q1 2025, representing a decline of roughly 29% from the prior year. The production crisis has been further exacerbated by factors such as the COVID-19 pandemic and recent strikes involving actors and writers, which halted many projects.

Another challenge facing the industry is fierce competition from other states and countries that offer better financial incentives for productions. The California Film Commission has reported significant reductions in shoot days and studio capacity, signaling a contraction in the region’s production landscape. Additionally, occupancy rates at L.A. soundstages have dropped from an average of 69% to 63% over the past year.

Wildfires have also created temporary filming challenges in certain areas, although their long-term impact has been minimal. To bolster production levels, there are suggestions to broaden the types of productions eligible for tax credits to include formats such as sitcoms and multi-episode series.

Industry experts caution that if the downward trend in production continues, it could lead to a loss of talent and job opportunities within California’s entertainment sector. As the industry navigates these challenges, the future of Hollywood production remains uncertain.