Hollywood Is Collapsing: Film and Television Productions Drop Dramatically in California as Studios Leave Golden State

It’s not loud. It’s not dramatic. But it’s real: Hollywood is quietly collapsing.

Despite the continued presence of glamour, premieres, and red carpets on Sunset Boulevard, Los Angeles – the pulse of America’s entertainment industry – there’s a quiet struggle going on beneath the surface. The dazzle of stardom and high-status events conceals a production crisis that, if left unaddressed, might make Hollywood a mere shadow of its former self. A recent report by FilmLA, an organization that manages filming permits in the city and county, reveals some stark figures. For instance, on-location filming dropped by 22% during the first quarter of 2025 compared to the previous year. Moreover, television production – once a dependable economic force for the region – has declined by almost half compared to the average of the last five years. This year saw an all-time low of only 13 pilots filmed in L.A.

This isn’t a bump in the road. It’s the new normal.

The main issue? A confluence of factors such as sluggishness following strikes, studio cost-reduction measures, and an international competition for tax incentives that California is struggling to keep up with. While contenders like Australia are seeing a 14% surge in production, countries such as Slovakia and Austria are attracting postproduction work by offering savings of up to 90% on music scoring costs alone.