Film and TV Production In L.A. Was Already Plummeting. Wildfires May Hasten the Exodus

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Emerging from the embers of the destructive wildfires in Los Angeles, there’s a heartfelt call from the local entertainment community deeply affected by the fires: Let’s restart filming in this area once more.

Rachel Morrison, a well-known cinematographer and director (The Morning Show, The Mandalorian), urged support for our city in a popular Instagram post within the film and TV production community. She emphasized that our city is home to some of the top crews globally who are in dire need of work at this critical time.”

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“In a widely shared Instagram post, acclaimed cinematographer and director Rachel Morrison (The Morning Show, The Mandalorian) called attention to our city. She stressed that we have exceptional crews who currently require employment more than ever before.

Morrison’s communication addresses an exceptional decline in local manufacturing, which began with the pandemic followed by strikes. The situation seemed to be improving for filming in Los Angeles amid a growing competition between filming locations trying to attract Hollywood investments. However, wildfires, driven by hurricane-force winds, hit L.A., causing massive destruction that surpasses anything seen in recent years. This apocalyptic blaze, fueled by gusts reaching up to 100 miles per hour, destroyed over 12,000 structures constructed over a century within just a few days. Consequently, the production landscape is now shrouded in uncertainty and gloom, still grappling with back-to-back crises that have significantly altered Hollywood’s economic landscape.

As a gamer immersed in the virtual world of Los Angeles, I’m witnessing a troubling reality unfolding. The historic wildfires are posing a significant threat, potentially undermining LA’s status as a filmmaking hub. Among the numerous challenges, one stands out: the potential for these fires to trigger a small exodus of the entertainment industry’s workforce from California. This could have severe implications for the city and its iconic productions.

The extent to which film production will be influenced by the displacement of filmmakers and crew members due to house fires remains unclear. The wildfires in Pacific Palisades and Altadena, regions known for their close-knit film and television communities, have burned through thousands of acres. While the media has focused on celebrities who lost their homes – Mandy Moore, Paris Hilton, Milo Ventimiglia, Jeff Bridges, and Billy Crystal among them – less attention has been given to the hardships faced by local film and TV crew members. The union IATSE estimates that at least 8,000 of its members have been evacuated or lost their homes; Lindsay Dougherty, a key figure from Local 399, reports that at least 25 of her organization’s members have had their homes destroyed. An Excel document detailing the GoFundMe pages set up for affected crewmembers now contains over 200 entries.

With crew members dispersing to various family homes, temporary shelters, rentals, hotels, and Airbnbs, there could be a potential impact on production for the near future. “The fires have indeed swept through many communities that are vital to accommodating film workers,” remarks Jason Lester, a director of music videos and commercials who has collaborated with artists like Hozier, Phoebe Bridgers, and Sabrina Carpenter, primarily based in L.A. “This inevitably brings about consequences for the industry, especially in the immediate term.

Paul Audley, FilmLA’s president, underlined that numerous individuals working in Hollywood, along with associated industries, have experienced a “significant impact” from this event. He also expressed concern that “numerous locations cherished by viewers across the nation might never appear on our screens again.

There’s been talk about a significant number of people leaving L.A., with entertainment workers being among them. The reasons for this exodus include the slowdown in work due to the COVID-19 pandemic, strikes in 2023, and a broader contraction in the industry over recent years. Dutch Merrick, an experienced armorer and prop master who lost his home in Altadena during the Eaton Fire, fears that more people may choose to leave now than before the disaster. Although he hasn’t heard of anyone with concrete plans to depart yet, the former president of IATSE Local 44 hints that some film crew, who might have been financially struggling before, could use their insurance money to move to less expensive locations.

This situation might mark a turning point, as fires could drive more talent and film crews to leave L.A. for other movie-making locations. In fact, isn’t it reasonable to consider moving somewhere like Georgia, with abundant production opportunities and lower costs, instead of staying in L.A., where rent is often 70% higher than the national median?

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This could be a pivotal moment, as fires may cause many people from the entertainment industry to depart L.A. for other film-producing cities. It’s worth considering moving to places like Georgia, which offers numerous production sites and lower living expenses, rather than remaining in L.A., where rent is usually 70% more expensive than the national norm.

Due to the recent fires, many people have been displaced and are now entering the rental market, causing a surge in demand and pushing up rental prices. Steven Moritz, a real estate agent in Los Angeles, reports that he has 50 clients who lost their homes. One particular house listed for rent at $7,500 prior to the fire received multiple bids last week, ultimately being leased for $8,100 per month – double its original price. The situation is further complicated by homeowners in areas like Pacific Palisades and Altadena, who are receiving insurance payouts for temporary housing at the value of their former properties, potentially adding more renters to an already strained market.

Moritz explains, “It’s essentially a battle for existence, in essence. The challenge lies in the scarcity of the products. Often, by the time you arrive to check, they have already been rented out.

Furthermore, let’s discuss the challenge of acquiring production insurance. Historically, wildfires in Southern California have occurred primarily from June to October. However, this pattern has shifted, and so has the risk associated with filming in certain areas of the state, especially those affected by Santa Ana winds.

In the last few months of 2024 and the beginning of 2025, it’s unusual to have significant wildfires in Southern California as wildfire seasons are usually defined by years rather than specific timeframes. However, due to changing climate patterns, wildfire season might extend all year round in this region. This shift may lead to higher insurance premiums and lower deductibles.

According to Kirk Pasich, an attorney specializing in insurance at McGuireWoods, the risk no longer adheres to temporal boundaries. This means that if a production takes place in January or February in a wind-prone area, the cost is likely to increase.

Films made without the support of large studios are at a greater disadvantage due to financial reasons. Studios usually buy insurance for a group of movies (known as a slate), which results in lower costs because the insurers can distribute the risk among various projects, locations, and times of the year. Independent productions, on the other hand, typically spend about 2% of their budgets on insurance, a luxury that larger studios enjoy. This means independent films will likely have to pay more for coverage, which can be a significant cost in an industry where every penny matters. The additional expense could potentially affect their ability to secure enough financing.

Bryan Sullivan, an entertainment lawyer, comments that while securing a policy might not be difficult, the premiums will likely be greater than what was previously encountered. Additionally, he warns that when submitting a claim, there could be increased resistance regarding certain responsibilities you’re obligated to fulfill. In case of evacuation, you may need to locate an alternative site.

Insurance policies can help pay for shutdown costs due to wildfires, but there’s a limit. To ensure film and TV projects complete successfully, even when faced with financial shortfalls, banks and investors often require a completion guarantee, which functions similarly to additional insurance coverage. However, the completion bond industry, struggling after the bankruptcy of Film Finances (a significant player in film completion guarantees last year), might decide that certain productions in high-risk wildfire areas during peak seasons are no longer eligible for such guarantees.

Additionally, we can examine the reactions of wealthy movie investors, who typically pour millions annually into indie films, and have suffered financial losses due to fires – even losing their homes – during this emergency situation.

Elsa Ramo, a lawyer dealing with production and distribution at firms like Fox and Skydance, posits that numerous wealthy film financiers have been significantly affected. The question now is whether they will abandon their Los Angeles aspirations or invest more heavily?

Two individuals who sit on the board of the Producers Guild of America have unfortunately lost their houses due to the fires, as reported by someone knowledgeable about the circumstances.

After the series of wildfires, the focus has shifted significantly towards Governor Gavin Newsom’s strategy to revitalize L.A.’s production scene. He aims to achieve this by increasing the annual tax credits given to film and TV productions from $330 million to a staggering $750 million. However, whether productions decide to return to Los Angeles at their previous rates will largely depend on other modifications made to the program. Some of the adjustments the industry has been advocating for involve expanding the kinds of expenses and genres of production eligible for tax credits, such as reality TV, and boosting the maximum amount a single title can receive in subsidies. A unique challenge that California’s film and TV tax credit program faces is its exclusion of above-the-line costs like actor, director, and producer salaries from qualifying for tax relief. This aspect has been exploited by rival jurisdictions to tempt productions away. As a fan, I’m eagerly waiting to see how these changes unfold and the impact they will have on the vibrant L.A. production scene.

Susan Sprung, PGA’s CEO, emphasizes that the goal is to ensure our costs are competitive with other locations. She points out that Los Angeles boasts the finest film crews and producers globally. With all the necessary infrastructure already in place, it’s just a matter of aligning budgets in a way that makes a compelling case for filming here.

Ramo emphasizes that the revamp of the tax incentive program serves as the “cornerstone for relief.” She further remarks, “If there’s no government backing to encourage filming here, what’s the purpose of renovating in Altadena when production is already dwindling?

Despite some initial concerns, it appears that Hollywood is carrying on with its usual resilience. The significant filming studios in Los Angeles have thus far remained unaffected. Shows like Max’s “Hacks”, CBS’ “NCIS” and NBC’s “Suits LA” that had momentarily halted due to the wildfires, have already recommenced production. From Dougherty’s perspective, her crew members do not seem to be planning an exodus anytime soon. In response to a question about potential crew members leaving L.A., she expresses the opposite sentiment, particularly for those who lost their homes in Altadena. She believes they will want to rebuild their community instead.

I stumbled upon this fascinating tale back in January, found within the pages of The Hollywood Reporter’s magazine edition. If you’d like to read more captivating stories like this one, consider subscribing to their magazine right here.

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2025-01-17 18:26