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Los Angeles Film Production Faces Continued Challenges in Q3 2024

New data reveals second-worst summer on record, sparking calls for expanded tax incentives

Naser Nahandian by Naser Nahandian
2 years ago
in Entertainment, Entertainment News, Movies
Reading Time: 2 mins read
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Film and television production in Los Angeles County has slowed significantly according to a new report from FilmLA, the city’s official film office. The latest numbers show a steep decline in filming activity during the third quarter of 2024.

FilmLA’s quarterly report found that shoot days, which measure the amount of production taking place, dropped 5% compared to the previous three months. This brought total shoot days down to 5,048 for the period. The 36.4% decrease from the five-year average was even worse than during past labor disputes between writers, actors and producers.

Unscripted and reality television production has been the primary driver of the downturn according to FilmLA President Paul Audley. That category saw a 56.3% reduction in shoot days over the last two quarters. While scripted shows like comedies, dramas and pilots rebounded somewhat following industry strikes last year, overall production across all categories remains below historical averages.

The slump comes at an inopportune time as competition from other regions has increased. California’s share of qualified film and TV projects has fallen from 23% in 2021 to 18% in 2023 as locations like the UK, Canada, New York and Georgia offer lucrative tax incentives. Industry leaders want California to boost its film incentive program in response.

Currently offering tax credits of 20-30% for productions spending at least $1 million in the state, the program’s $330 million annual cap is seen as too low. Audley argues expanded incentives reflecting today’s market are needed to keep business from leaving. Despite challenges, some new and returning shows continue utilizing California’s existing incentives to film in the Los Angeles area.

As the final months of 2024 will determine the industry’s overall health locally, all eyes are on Sacramento. Whether legislators strengthen tax breaks and other efforts to arrest the drop in film activity could shape L.A.’s future as the global entertainment capital. Innovation will be key to maintaining that status amid rising competition for Hollywood’s business.

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