Why Hollywood Jobs are Leaving LA and New York

The Great Hollywood Shift: Why Film and TV Jobs Are Moving Away from LA and New York

According to Marketplace.org, over the past two years, the film and television industry has experienced a significant transformation. A notable shift has occurred, with many of the jobs traditionally centered in Los Angeles and New York City moving to other parts of the country. This trend, revealed through Bureau of Labor Statistics data analyzed by APM Research Lab, shows a dramatic change in the employment landscape of the industry.

A Changing Industry Landscape

Historically, Los Angeles and New York have been the epicenters of film and television production. However, recent data indicates that the share of workers in these traditional hubs has decreased from just under half at the beginning of 2023 to one-third earlier this year. This shift reflects broader upheavals in the industry and changing dynamics in production and distribution.

Janie Haddad Tompkins, a seasoned actor with roles in TV comedies like “Night Court” and “Brooklyn Nine-Nine,” has felt the impact firsthand. Previously accustomed to a steady stream of auditions, she now faces a stark reduction in opportunities. “There were constant auditions. I mean, constant auditions,” she says, reminiscing about the bustling days before the industry’s recent downturn.

The Streaming Bubble Burst

The industry’s recent peak came in 2022, when 600 original scripted shows were in production, driven by a surge in streaming services. This bubble of content creation, aimed at attracting subscribers, provided numerous opportunities for all facets of film production, from writers and crew members to actors.

However, as Patrick Adler, an assistant professor and head of Westwood Economics, explains, the bubble burst due to several factors:

1. Rising Interest Rates: Wall Street’s patience waned as the cost of money increased, leading to decreased investment in streaming platforms.
2. Market Saturation: Studios realized that consumer demand for multiple streaming subscriptions might not be as robust as anticipated.
3. Strike Impact: The Hollywood writers’ and actors’ strikes further stalled production, leading to a six-month industry shutdown.

The Shift to Other States

While Los Angeles and New York have seen a decline in production activity, other states have seen growth. The rise in film production outside traditional hubs is partly driven by state tax incentives. Travis Knox, a movie producer and professor, highlights the role of generous state tax credits, noting that states offering substantial rebates on production budgets are increasingly attractive to studios.

This trend has been long-standing, with states like Louisiana and Georgia becoming major players due to their competitive tax incentives. Recent expansions of film incentive programs in at least 18 states since 2021 have only accelerated this shift. Additionally, lower costs of living in these states make them appealing for studios looking to cut expenses.

Knox himself is participating in this trend, noting that his current project, set in central California in the 1940s, will be filmed in Oklahoma.

Challenges for Writers

Despite the shift in production locations, some aspects of the industry, such as TV writers’ rooms, remain concentrated in traditional centers. However, the reduction in overall production has made it challenging for writers, especially those at the mid-level of their careers. Jackie Penn, a TV writer with credits including Disney’s “Turner & Hooch,” describes a tough job market where mid-level writers are struggling to advance.

“Everyone’s trying to go after the same job, essentially,” Penn says. “A lot of the shows are only looking for upper-level writers or writers working on their very first show.” This gap for mid-level writers could impact the future of television as the next generation of showrunners and creators faces limited opportunities.

The Future of the Industry

The film and television industry is in a state of flux, with shifting job locations and evolving production practices. While the traditional centers of Hollywood are no longer the sole focus, the industry’s adaptation to new economic and logistical realities will shape its future. As production continues to spread across the country, the impact on employment and creative opportunities in Los Angeles and New York remains a critical issue for those navigating the changing landscape.