TV Production Exodus: 'Misery in L.A.', Who's Getting 'Screwed' and What to Do About It

As seen on The Ankler.

Is Hollywood a place or an idea? For more than 100 years, it has been both. But with cities, states and countries across the globe hungry for film and TV production and luring projects with lucrative tax incentives, it’s becoming harder and harder to shoot in and around L.A.

“Everyone I talk to says, ‘We’re scouting this location and this location.’ It’s never L.A.,” a top talent lawyer tells me. “That’s unfortunate for the place that gave birth to Hollywood.”

Over lunches and golf outings, these conversations are happening all across town, with agents, lawyers and producers lamenting that once bustling studio lots are now eerily quiet. Their fears are fueled by stories like Warner Bros. Discovery announcing last month that it will commit to spending $8.5 billion in Nevada if the state sweetens its incentive program.

As with most things today, it boils down to economics. Labor costs are increasing, interest rates remain high — and the tax breaks offered by the Golden State just don’t cut it.

“People move here because they think they’re going to work here, but the government has made for an inhospitable environment in California,” the lawyer says. “The government simply does not care about keeping the entertainment industry here. I don’t know if Los Angeles is done, but it’s close to it.”

Colleen Bell, executive director of the California Film Commission, says the state does care — and not just because a Los Angeles County Economic Development Corporation (LAEDC) study showed that every dollar allocated in the program generates $24.40 in economic activity. Though that certainly doesn’t hurt.

“It’s a very important part of the California brand, our identity, our legacy,” she says. “We’ve got some of the best training programs anywhere in the world, the best infrastructure. We want to keep production here and, frankly, need to make sure that we continue to invest in our lead. We don’t want to get left behind.”

“Incentives are important. They are critical,” says Entertainment Partners SVP and incentives expert Joseph Chianese. “They started in 2001, and everyone assumed that it was a fad. In its peak here in the U.S. in 2008, there were 48 states with incentives.” Interest had ebbed and fewer states were trying to entice productions, but Chianese says it’s on the rise again now. “We’re back up to 40,” he says. “Places like Wisconsin and Michigan are all reconsidering bringing back incentives.”

Amid the fervor — and the surprising number of recent headlines about tax incentives — I spoke with key players from Barnes & Thornburg and Entertainment Partners, as well as others who wanted to remain nameless so they could be candid about just how dire the landscape really is right now.

In this issue, you’ll learn:

• The outsize impact Netflix has had in accelerating California’s production exodus
• How talent and showrunners often lose money on relocation costs today
• The role streamers’ use of block shooting in TV plays
• Which jurisdictions still have money to burn before the end of the year in tax incentives — including California
• Mayor Karen Bass’ new Entertainment Industry Cabinet, who’s in it, and what they are doing about the issue
• Five overlooked U.S. states and five countries with attractive tax incentives
• The role California politics will play in keeping production in the state

Ashley Cullins writes about the agents, lawyers and other dealmakers who make Hollywood work for paid subscribers (every other Tuesday, alternating with Reel AI). She recently dove into the fight against celebrity AI scams, the coming M&A landscape and why cost-plus deals are dying. You can reach her at ashley@theankler.com.