The State of North American Film & Television Production: 2024 in Review and Outlook for 2025

Similar to recent years, the global film and television production industry experienced significant challenges in 2024. In the wake of the Hollywood strikes and the COVID-19 pandemic, the industry has struggled to recalibrate and regain its momentum. And this challenge isn’t exclusive to the U.S.

In this article, we’ll look at the state of the industry, where we stand in the US and Canada, what factors have made the biggest impact, and the potential that comes with the year ahead.

The state of the film & TV industry

If you’re paying attention to what’s happening in the entertainment industry (and even if you’re not) you’re bound to hear buzzwords like “contraction” and “reset” everywhere. And it’s true; although, the downturn in production volume in 2024 was influenced by several factors. The WGA, DGA and SAG-AFTRA strikes led to a staggering reduction in the volume of green-lit projects; compounded by the impact of COVID-19, studios faced profit losses no one expected.

Under these new economic constraints, major media companies were forced to exercise increased caution in commissioning new content, decrease content spending, and focus on areas for cost-cutting, which further impacted production levels.

The impact was not limited to film. The culmination of many factors and challenges across the market (discussed more below) led many to declare “the end of peak TV” with production levels down year-over-year.

Hollywood studios spent $11.3 billion on productions in the second quarter of 2024, a 20% drop from the same period in 2022, reflecting a downturn in industry activity. Globally, film and television production levels declined by 20%, while the US saw a sharper 40% decline from pre-strike levels. The Greater Los Angeles Area experienced a 36.4% decrease in shoot days compared to its five-year average, underscoring the widespread impact of production slowdowns across key sectors.

While many express concern, much of the reduction can be attributed to corrections and production irregularities stemming from the pandemic and strikes. And due to the disruptions caused by streaming, changes in audience viewing habits, the decline of linear television, and reduced theatrical windows, additional uncertainty toward the future remains, as studios, streamers, and other producers reevaluate their business models and production slates.

Internationally, the film and television industry in 2024 also experienced notable shifts in production levels, with post-strike recovery slower than expected. However, the combination of lower costs for labor and production, and generous incentive programs (like those in Canada and the UK), have been attracting producers at a faster rate than in the US.

What changed in US production incentives

In 2024, the landscape of film and television production incentives experienced a transformation, influencing production decisions and redefining industry dynamics—both in the United States and internationally.

With over 40 jurisdictions offering incentive programs, US production incentives overall remained stable in 2024. The risk of major reductions—like those proposed in Georgia—was luckily averted, and new incentive programs were introduced by municipalities, such as Miami-Dade County (rebates up to 20%) and Oklahoma City (5% to 10% rebate).

Legislation enacted in New Jersey & Louisiana

Earlier this year, New Jersey enacted measures to enhance its incentive program when Governor Murphy signed legislation increasing the annual tax credit allocation to $300 million for general applicants, in addition to $250 million for New Jersey studio partners and film-lease production companies. New Jersey has introduced higher credit percentages for productions with approved diversity plans and extended the program’s duration to July 1, 2039.

New Jersey’s incentive modifications not only attract film and TV production to the state, but they also encourage the development of infrastructure, including Netflix’s over $900 million production facility at the former Fort Monmouth Army base. This development is expected to significantly boost local production capabilities and create numerous jobs.

In Louisiana, legislation was proposed that would have eliminated the state’s incentive program in efforts to offset a large state-wide tax reform. The Louisiana Tax Reform Bill was passed and signed into law by Governor Landry on December 5, 2024, with the film and television tax credit program preserved, albeit with modifications (e.g., the annual cap for the film tax credit has been lowered from $150 million to $125 million, effective July 1, 2025.).

The Louisiana film tax incentive is credited with supporting approximately 10,000 jobs and generating $1 billion annually in economic activity within the state. Industry leaders and local officials, particularly in areas like Shreveport, emphasized the program’s importance in attracting productions and fostering economic growth.

California’s legislation proposal

Perhaps one of the biggest stories this year, California Governor Gavin Newsom introduced plans to increase annual funding for the state’s incentive program to $750 million (up from $330 million) with the aim to reclaim productions that have migrated out of the state due to more competitive incentives elsewhere.

The California film and television industry is taking additional steps to help keep the Golden State competitive with the launch of the California Production Coalition, bringing 33 film, television, and streaming production businesses and associations from across the state together to improve the state’s outdated and underfunded production tax credit program. The coalition highlights the economic benefits of a competitive program, citing studies that show significant returns on local production spending.

A new poll reveals 73% of California voters support Governor Gavin Newsom’s proposal to raise the state’s incentive cap to $750 million annually, underscoring broad public support for keeping production—and its economic impact—at home. And the California Production Coalition is looking for other companies to join the cause.

Despite California’s unmatched workforce, iconic locations, and century-long industry leadership, it faces increasing competition from states and countries offering more robust incentives. For example, it does not qualify Above-the-Line (“ATL”) labor, a key factor many producers are seeking, and one which other states and countries (like the UK) already offer. Additionally, California doesn’t qualify animation, unscripted television, or post-production-only projects for its incentive.

Jurisdictions offering production incentives that allow ATL costs (such as directors, producers and talent) as qualified spend with minimal or no compensation limits and high or unlimited funding caps, have a competitive advantage and are attracting large-budget productions. New Mexico, where Oscar-winning Oppenheimer was filmed, offers a 25% to 40% refundable tax credit, with ATL costs qualifying up to $40 million. Georgia offers a 30% transferable tax credit with no caps on ATL or annual funding, and producers can earn an additional 10% cash rebate for film and television production in Savannah.

Audit changes announced in Georgia

Finally, in the US, the Georgia Department of Revenue recently announced major changes to its film tax credit audit process, addressing long-standing concerns from film industry stakeholders and CPAs. Effective for audits initiated on or after January 1, 2025, the updated process promises greater efficiency, predictability, and cost-effectiveness, making it easier for productions to monetize their credits. These improvements aim to enhance clarity, fairness, and timeliness, while reducing unnecessary expenses during the audit process.

Production incentives expanded in Canada

Canada’s film and television industry continues to flourish, bolstered by a combination of federal and provincial tax incentives designed to attract both domestic and international productions.

Along with the Canadian Film or Video Production Refundable Tax Credit (CPTC), which offers a rate of 25% on qualified labor expenditures, the Film or Video Production Services Refundable Tax Credit (PSTC) offers a rate of 16% on Canadian-controlled labor costs, which is the most used tax credit by foreign productions.

Multiple Canadian provinces, including Ontario, British Columbia, Alberta, Manitoba, and Quebec, enhance these federal incentives with their own programs. Ontario, for example, offers a 21.5% refundable tax credit, which can be bundled with the 16% federal incentive, providing an effective rate of 34.1%.

Alberta has increased its incentive to 30% for Alberta-owned productions and 22% for foreign-owned productions, aiming to absorb production overflow from other provinces. The Northwest Territories also increased its incentive, expanding its annual budget from $100,000 in 2015 to $500,000 in 2024-2025, and further yet to $1 million annually starting for 2025-2026.

As California eyes an increase to tax incentives for TV and film production, British Columbia (BC) has approved plans to raise the CPTC from 35% to 36%, and the PSTC to 36% (up from 28%) for productions with principal photography starting January 1, 2025, with an additional 2% uplift for productions spending $200M or more. BC has also signaled a potential increase to the Refundable Digital, Animation, and Visual Effects (DAVE) Credit.

These incentives have contributed to a robust production infrastructure across Canada, with major hubs in Toronto, Vancouver, and Montreal offering state-of-the-art studios and skilled labor forces. Notably, British Columbia boasts approximately 2.8 million square feet of studio space, including facilities like Canadian Motion Picture Park Studios, which has a long-term lease with Netflix, and Martini Film Studios, which provides a full-service production facility of 150,000 sq. feet of stage space with eight stages, accompanied by an additional 100,000 sq. feet of support space, as well as a full suite of back lot services.

This comprehensive support system continues to position Canada as a leading destination for film and television production well into the future. 

Looking ahead to 2025

President Trump’s proposed 25% tariffs on exports could significantly impact US and foreign film and TV production. And a weaker Canadian dollar, potentially falling below 70 cents to the US dollar, would make Canada even more cost-attractive for Hollywood productions, particularly as studios and streamers tighten budgets post-strikes. This currency advantage, combined with Canada’s stable tax incentives and infrastructure, could further erode California’s efforts to retain productions despite its proposed $750 million tax credit program. US producers may increasingly prioritize Canadian locations for both cost savings and co-production opportunities, while Canadian VFX studios and service providers are positioned to benefit from lower operational costs and growing demand.

While the future of the film and television industry is yet to be seen, we emerge from this tumultuous period with a focus on stabilization. Some optimism exists about production levels returning to growth, but many in the industry feel that costs and output had reached unrealistic levels. In a turn of fate, the challenges of the past few years may have presented an opportunity to reset as studios and major media companies are expected to practice strategic and measured investment in content, focusing on smarter spending and emphasizing quality over quantity.

The resurgence of independent production will continue as a bright spot for the industry as we head into 2025. Supported by production incentives (especially the new 40% incentives for independent film production in the UK and Ireland) and lower overall production costs, independent film production is expected to increase, supplementing reduced studio and streamer slates.

Independent TV production is picking up too, as producers like Mark Duplass independently finance and produce their own content. Duplass’s series Penelope was recently picked up by Netflix for distribution.

While production levels haven’t yet restored to pre-pandemic levels, the groundwork is being laid for more consistent and sustainable growth in the future. Producers can continue to rely on production incentives to support production in North America and around the world.