One Bold Idea That Could Save California’s Film and TV Industry

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As a passionate advocate for California, I can’t help but feel that we’re overlooking a tremendous chance to revitalize our state by reinstating film production within its borders. Instead of focusing on petty debates about incentive caps, let’s step out of the shadows and aim high – like the world-class cinematic powerhouse we aspire to be. It’s time for California to take bold strides and invest significantly in our future as a leading film industry.

For California to effectively rejuvenate its film production and match other states’ accomplishments, it should funnel real funds directly into the movie industry, rather than merely offering indirect financial support via tax breaks and incentives.

In various parts of the world, I’ve come across funding models that back films based on equity. This means they directly invest money into filmmaking projects, giving them a stake in future earnings. This approach fosters a more resilient and competitive film industry, as it allows creators to focus on their craft without worrying too much about immediate financial returns.

In the UK, the British Film Institute (BFI) finances films through the National Lottery, which allows the government to receive a portion of box office earnings. Similarly, France’s CNC (Centre National du Cinéma) operates by combining direct funding and equity stakes to back local productions. On the other hand, in Canada, Telefilm Canada – funded by taxes on current media income streams – invests directly into films, taking an equity share to assist producers in securing more financing and ensuring a profit if the film becomes successful.

It’s puzzling why California, with a GDP over $3.9 trillion – greater than the individual GDPs of the UK, France, and Canada – doesn’t invest as much in equity for the film industry as those countries do.

Investing directly in the film industry isn’t merely an economic obligation for California; it’s also a matter of cultural and historical significance. This is because the movie industry originated here – it’s part of our heritage, and it’s something we should take pride in nurturing and safeguarding as a legacy for future generations.

On a more personal level, it seems that numerous acquaintances of mine have moved from California to Austin, Texas, and other cost-effective states, not out of choice but due to necessity. Tragically, some of these friends have since lost their homes to the fires that occurred in early 2025.

My idea is to make California an investor or co-investor in movies. By funding between 50% and 100% of the budget for films at every level – from $100,000 to $100 million productions – California could implement an equity-based financing method. This would enable the state to receive a portion of future earnings, such as profits, royalties, and residuals from profitable movies. In essence, this would turn California from a passive benefactor through tax credits, into an active investor who stands to gain significant financial benefits. Essentially, this is how it could work:

  • Major Studios & Indie Films: The state could take a two-pronged approach — partnering with major studios to keep big-budget productions in California while also funding independent films to support emerging talent and diverse storytelling.
  • Sustainable Investment Fund: Profits generated from successful projects could be reinvested into new films, creating a self-replenishing fund that supports continuous production without draining state resources.
  • Increased Tax Revenue: With more productions choosing California, the state would benefit from increased payroll taxes, sales taxes on goods and services, and income taxes from industry workers and businesses.
  • Job Creation: Funding films directly would stimulate job creation across multiple sectors — from construction and hospitality to technology and logistics — multiplying the economic benefits as each dollar spent circulates through the state’s economy.
  • Cultural Exports & Tourism: Successful films shot in California would serve as powerful cultural exports, enhancing the state’s brand globally and driving tourism to iconic locations showcased on screen, generating additional revenue.
  • Intellectual Property Ownership: By investing directly, California could negotiate ownership stakes in the intellectual property rights of films, creating a valuable portfolio of assets that continue to generate income through streaming, licensing, and merchandise long after initial release.

There’s often a debate about the state intervening in film funding, which some argue leads to favoritism. To prevent this issue, California could create an independent panel of industry experts to supervise investments. This group would consist of accomplished California-based film directors and other creative professionals with extensive experience in storytelling, production, and the film industry. Instead of relying solely on studio executives with business backgrounds and corporate objectives, wouldn’t it be wiser to have seasoned filmmakers making investment decisions? By doing so, California could support films that offer both artistic and cultural worth as well as commercial potential.

Under this proposal, the California Film Commission’s responsibilities would extend beyond offering tax credits. Instead, they might manage a unique investment fund sourced from the state budget. This fund would operate on a revolving basis, with successful films helping to finance subsequent projects. By doing so, we would create a self-sustaining system rather than providing a single grant.

Changing how California finances films by investing a significant portion, up to 100%, in projects at all levels isn’t merely a shrewd financial decision – it’s an immediate requirement. This approach would generate jobs, increase tax income, and restore California as the leading hub of the film industry. This action should be implemented immediately, before any more productions depart and the chance to preserve California’s cultural and economic heritage slips away.

Adam Bhala Lough, a freelance movie director based in Los Angeles, has just debuted his newest production, “Deepfaking Sam Altman,” at this year’s South by Southwest (SXSW) Film Festival.

Originally published in The Hollywood Reporter’s March 19 edition, you can read this story by subscribing to their magazine. Click here to do so.

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2025-03-19 18:55