[UNITED STATES] For decades, Los Angeles has been synonymous with the glitz and glamour of Hollywood, attracting dreamers and creatives from all over the world. However, a significant shift is underway in the entertainment industry, with many filmmakers and TV workers choosing to leave the City of Angels for new horizons. This exodus is reshaping the landscape of film and television production across the United States and beyond, driven by a combination of economic factors, technological advancements, and changing industry dynamics.
The entertainment industry has always been known for its ability to adapt and evolve, but the recent changes have been particularly dramatic. The traditional model of centralized production in Los Angeles is giving way to a more distributed approach, with filmmakers and production companies setting up shop in various locations across the country and around the world.
Joe Gallegos Jr., an actor who spent a decade in Los Angeles, exemplifies this trend. After landing a role that brought him back to his native New Mexico, Gallegos realized he didn't need to return to LA. "It's been a good decision because, as an actor, I can be literally anywhere in the world now," he said. This sentiment is echoed by many in the industry who have found success outside of the traditional Hollywood bubble.
Economic Factors Driving the Exodus
One of the primary reasons for the Hollywood exodus is the high cost of living in Los Angeles. As housing prices and rents continue to soar, many industry professionals are finding it increasingly difficult to make ends meet. This financial pressure is particularly acute for those in the early stages of their careers or working in less lucrative roles.
The financial incentives offered by other states and countries are also playing a significant role in luring productions away from California. Thirty-seven states now offer perks for film and TV production, typically in the form of tax credits or cash rebates. These incentives can significantly reduce production costs, making it more attractive for studios and production companies to shoot outside of Los Angeles.
The Rise of New Production Hubs
As productions move out of Los Angeles, new hubs are emerging across the country. Atlanta, Georgia, has become a particularly popular destination, thanks to its generous tax incentives and growing infrastructure. Tiffany FitzHenry, an executive producer who relocated to Atlanta from LA in 2009, has witnessed the city's transformation firsthand. "We have training for not just below the line but people in producing, packaging, financing," she explained. "The biggest movies have been made here for the past 15 years. We have all the toys and tools at our fingertips."
Other cities and states are also getting in on the action. Kentucky, for example, passed an incentive program in 2022 offering fully refundable production tax credits worth up to $75 million total or $10 million a project. Lexington, the state's second-largest city, has attracted 30 film and TV projects so far this year, representing more than $2 million in local spending.
The Impact of Technology and Remote Work
The COVID-19 pandemic accelerated the adoption of remote work technologies in the film and television industry, making it easier for professionals to work from anywhere. Self-tapes for auditions, virtual pitch meetings, and remote editing have become commonplace, reducing the need for physical presence in Los Angeles.
Tyler Mitchell, CEO of Impact, a LinkedIn-like platform for Hollywood, notes the global nature of this shift: "I know of producers, senior production people, moving to places like Australia or working in Hungary. In the UK, Australia, the governments have supported a lot of education, training, to make sure as they built up production facilities, they had enough crew to service sound stages."
The Streaming Revolution and Its Consequences
The rise of streaming platforms has had a profound impact on the entertainment industry, leading to a boom in content production followed by a period of contraction. This volatility has contributed to job losses and uncertainty in the Los Angeles market, prompting many to seek more stable opportunities elsewhere.
According to a recent analysis by Westwood Economics & Planning Associates, Los Angeles's share of film and TV jobs in America has dropped from about 33% two years ago to 22% in August 2023. This decline reflects both the dispersal of production activities and the overall contraction of the industry.
The Challenges of Decentralization
While the exodus from Hollywood presents opportunities for many, it also comes with challenges. The loss of the centralized ecosystem that Los Angeles provided can make it harder for newcomers to break into the industry and for professionals to build the networks crucial for career advancement.
Keisha Perry, an entertainment attorney in Atlanta, acknowledges this reality: "The reality is, a lot of the decision-makers are in LA. There are those people who feel as though if you're not in LA, your legitimacy can be questioned."
The Future of Hollywood
Despite the ongoing exodus, it's important to note that Los Angeles still holds a significant position in the entertainment industry. The city's legacy and established infrastructure continue to attract talent and investment, particularly in emerging sectors like video games, marketing, and the creator economy.
Patrick Adler, principal at Westwood, emphasizes the enduring importance of face-to-face interactions in certain aspects of the industry: "There's high stakes there. This is an area where trust matters. You built it through face-to-face interaction, repeated exchanges. That's why casting for top roles still happens in LA, even if they end up being shot elsewhere."
The Hollywood exodus represents a significant shift in the entertainment industry, driven by economic pressures, technological advancements, and changing production models. While Los Angeles may no longer be the sole center of the film and television world, it remains an important hub in an increasingly decentralized industry.
As FitzHenry notes, "There used to be that mentality of, you have to be in Hollywood to be in the business. I think that's changing." This change presents both challenges and opportunities for industry professionals, as well as for the cities and regions looking to attract film and television production.
The future of the entertainment industry is likely to be more distributed and diverse, with multiple centers of production and creativity emerging around the world. While this transformation may be disruptive in the short term, it has the potential to foster innovation, reduce costs, and create new opportunities for talented individuals regardless of their geographic location.
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