Hollywood’s Crisis: Navigating the Existential Moment Amid Plummeting Production Levels

President Trump’s proposal for a 100% tariff on films from outside the U.S. has stirred a significant debate in Hollywood. This has also highlighted the ongoing struggle to bring film production back to California.

Film production in the Los Angeles area has noticeably decreased. According to FilmLA, which oversees film permits, there were 30% fewer film and television shoots in the first quarter of 2025 compared to the previous year. Last year, LA soundstages were only 63% occupied, a stark reminder of the challenges the industry faces since the COVID-19 pandemic and the impact of recent strikes by writers and performers.

Philip Sokoloski from FilmLA describes the situation as critical, noting that productions haven’t fully recovered. Many studios are cutting back on the number of shows they’re greenlighting. As competition for limited opportunities grows, many California filmmakers feel the pinch, especially with states like Georgia and countries like Canada offering better incentives.

At a recent Milken Institute panel, Ravi Ahuja, the CEO of Sony Pictures, acknowledged that while many want to keep filming in LA, the tax incentive programs need a serious overhaul. Casey Bloys from HBO echoed this sentiment, criticizing the uncertainty surrounding tax breaks for new projects.

Historically, California has been the heart of filmmaking. However, with the shift of productions to places offering attractive tax credits, California’s dominance is at risk. For example, after the hit show “Ugly Betty” moved to New York for better incentives, California had to adapt, leading to the introduction of the “Ugly Betty Bill” to keep productions from escaping.

Recently, California Governor Gavin Newsom offered to develop a $7.5 billion federal tax credit plan, aiming to bolster local production opportunities. He has also proposed expanding California’s existing tax credit program, hoping to reinvigorate the industry.

Pamala Buzick Kim, a co-leader of the grassroots group Stay in LA, believes expanding credits is crucial for the industry’s survival. She emphasizes that talent and experience in California’s entertainment scene must be preserved and that the impending conversation spurred by the tariff proposal is an opportunity to reevaluate and strengthen local productions.

As discussions around protections for California’s film industry continue, many in Hollywood are optimistic for a future revival.



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