More features are filming in California — but shrinking budgets and fewer big-studio projects tell a different story.

Key Takeaways

• California saw more film shoots this year, but overall production spending dropped 10%.
• Growth is driven mostly by indie films, not big-budget studio features.
• TV production in Los Angeles fell sharply, with episodic shoots down 20%.
• Competitor states like New York, Illinois, and New Jersey also saw shoot increases — some with higher production spending than California.
• The expanding incentive programs across states continue to reshape where film and TV projects land in the U.S.

California Shoots Are Up, But Hollywood Budgets Are Shrinking

California’s efforts to revive its film and TV production economy are beginning to show early results — but not in the way many hoped.

When Gov. Gavin Newsom signed legislation on July 2 to double California’s annual film incentive program from $330 million to $750 million, the goal was clear: pull production back home. And at first glance, the numbers look promising. According to a Q3 report from industry tracker ProdPro, California’s filming count rose 10% year-over-year.

But that headline hides a significant shift beneath the surface:
✔ more projects are filming
✘ but they’re spending less money.

In fact, California’s production spend fell 10%, dropping to $1.5 billion, largely due to a wave of lower-budget indie films replacing the big studio projects the state traditionally relies on.

Indies Are Fueling California’s Boost — Not Major Studios

The latest incentive allocations from the California Film Commission reflect this new landscape:

• Only 10 big-budget studio features received tax credits
• 42 indie films were approved
• 32 of those indies have budgets under $10 million

That shift has real impact. Studio tentpoles typically bring larger crews and larger budgets — meaning more jobs and economic activity. By contrast, indie features boost shoot counts without significantly boosting spending.

Los Angeles: More Film Shoots, But a TV Downturn

Los Angeles mirrored the statewide pattern:

• Feature filming increased 10%
• But the increase came from independent films, not major studio titles

Meanwhile, episodic TV production — historically one of L.A.’s strongest anchors — dropped 20% in Q3. According to FilmLA, fewer episode orders from major streamers and networks continue to drag down the city’s TV sector.

FilmLA VP Philip Sokoloski noted that the quarter does show “early signs” of incentives working, but acknowledged the decline in television is significant.

Competitor States Are Also Expanding — Some Faster Than California

Even as California ramps up incentives, other states are aggressively positioning themselves as film hubs. Several posted large year-over-year increases in shoot volume:

New York

• Shoot count: +17%
• Production spend: –32%
• Incentive cap: $800M, higher than California
  New York remains a powerhouse, though it is facing its own spending decline similar to California.

New Mexico

• Shoot count: +25%
• Production spend: –37%
  New Mexico continues to draw major streamer projects, including Netflix titles filmed at ABQ Studios. The state highlighted that Ransom Canyon Season 2 alone is employing hundreds of local workers.

Illinois

• Shoot count: +63%
• Production spend: +12%
  Chicago’s Dick Wolf universe (Fire, PD, Med, Justice) continues to drive huge local production volume, with background actor work also rising significantly.

New Jersey — The Breakout Winner

New Jersey is quickly becoming one of America’s most explosive production hubs:

• Shoot count: +100%
• Production spend: +170%
• Future home of Netflix’s East Coast studio campus and Paramount’s Bayonne facility

The state hit a record $833 million in 2024 production spending, anchored by major titles like A Complete Unknown, Deliver Me From Nowhere, and Happy Gilmore 2.

Georgia Faces a Surprising Decline

Long a production juggernaut thanks to Marvel, Netflix, and AMC titles, Georgia experienced a downturn:

• Shoot count: –33%
• Production spend: –33%

Marvel — one of the state’s largest employers — is shifting multiple major productions to the U.K., impacting Georgia’s once-booming studio ecosystem.

Shows still filming in the state include Tulsa King and Will Trent Season 4, but activity is noticeably down.

The National Picture: Up Shoots, Down Spending

Across the U.S., total film shoots rose 15% in Q3. But internationally, the story is different — production counts fell in the U.K., Canada, and Australia.

Looking ahead, ProdPro forecasts global production spending to fall 7% in 2025, hitting $41.6 billion.

And even though Disney and Paramount have signaled increased content spending for 2026, much of that money is expected to go into:

• sports programming
• international content
• non-scripted formats
• franchise-focused creators

Not necessarily into U.S.-based film and TV production.

What This Means for Entertainment Professionals

1. More indie opportunities in California

While budgets are smaller, there’s more activity for actors, crew members, and creatives comfortable working on independent films.

2. TV workers may feel the squeeze

The 20% drop in episodic shoots in L.A. reflects broader pullbacks from streamers.

3. Top competitor states are growing aggressively

New Jersey, Illinois, and New York are expanding faster than California in several key areas.

4. Incentives matter more than ever

States with higher or uncapped incentives (like New York and Georgia) continue to draw large-scale productions.

5. Future studio investments will reshape the map

New Netflix and Paramount campuses in New Jersey will solidify the East Coast as a production hub.