Goodbye Hollywood: Why Movies and TV Productions are Leaving California
When we think about movies and TV shows, we also think of Hollywood. The glitz, the glamour and of course, the film studios and the Hollywood sign that’s been featured in several movies and shows in the past. For decades, Hollywood has been the epicenter of the movie industry. However, more and more productions are leaving California. But why? And what does it mean for the future of Hollywood?
The High Cost of Keeping Hollywood in California
California is expensive. Whether you’re a filmmaker, a production company, or even a regular person just trying to make ends meet, the cost of living and doing business in the state has increased in recent years. Not only that, but California also has some of the highest taxes in the country. For production companies, this can add up fast, especially if you factor in the cost of renting studio space and hiring local workers.
For productions on a tight budget or not backed up by a big studio, these costs can better be allocated to other more important expenses.
Doubled Tax Incentives
California used to have a monopoly on movie-making but filmmakers who wanted to make their movies need to think outside of the box to lower the cost of production. Per Yahoo! Entertainment, Gov. Gavin Newsom announced a plan to double California’s film and TV tax incentive from $330 million to $750 million to keep producers working in the state.
New California Coalition
A group of businesses in the entertainment industry formed the California Production Coalition to help keep Hollywood in California. The group consists of “film, television and streaming production businesses and associations” with a mission of changing California’s “outdated and underfunded” tax credit program, per Deadline.
Pam Elyea, owner of History for Hire, an equipment rental company said, “We must not take California’s film industry for granted and expect to stay competitive in the global entertainment industry without a competitive tax credit program. The California Production Coalition was founded by a group of small business owners, studios, and professional organizations with strong roots in our local communities. Let’s give our California roots the fiscal nourishment to grow even stronger and larger.”
Her sentiments were also echoed by the CEO of Camtec Motion Picture Camera Systems, Kavon Elhami. “Today, we are witnessing firsthand the challenges facing our industry as California’s dominance in entertainment is tested by other states and countries. Thousands of businesses like ours flourish in a thriving production environment. It is essential that we come together now to ensure California remains the hub of the motion picture industry.”
