The New Normal? California Entertainment Industry Work Sees Modest Growth as Production Levels Lag

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2023 witnessed substantial growth in California‘s entertainment sector, with approximately 15,000 new job positions created. This upturn represents a recovery phase from the significant decline preceding and during the industry strikes.

However, the most recent Otis College Report on the Creative Economy, published on Thursday, indicates that job numbers within this field are still significantly lower than pre-strike levels. Just a quarter of positions lost following the peak of Peak TV in 2022 have been restored to the state so far. In conjunction with data concerning Los Angeles production, the research seems to imply that employment recovery may take some time yet.

The findings have sparked a debate on whether the California film industry is adapting to a “new normal” characterized by fewer shooting days and less employment compared to the years prior to the strike. Data from FilmLA’s permitting office indicates that this trend may persist, as the region saw its lowest production ever last year with only 23,480 shoot days. To put this into perspective, between 2017 and 2022, an average of 37,624 shoot days were recorded (excluding 2020 due to pandemic-related filming restrictions).

The decrease in film production in California can be linked to several interconnected reasons. In 2022, studios reduced their production budgets following a prolonged effort to generate unique content for their streaming platforms. With frugality gaining importance after the strikes, productions are progressively moving towards locations offering more attractive subsidies for Hollywood filming.

Lawmakers are paying attention to the exodus of film and television productions from California. The state’s tax incentive program for the industry is being reconsidered significantly due to a competition between states vying to host Hollywood. The changes include raising the annual cap from $330 million to $750 million, greatly increasing the credit to 35%, and broadening the eligibility criteria to include shorter TV series, animated titles, and specific types of unscripted projects. However, it remains uncertain whether these adjustments will substantially bring back production and employment in the state, given the significant decrease in shooting activity in Los Angeles over the last two years.

Compared to 2022, which saw a peak in the film and TV industry employment in California, there has been approximately a 20 percent decrease in job opportunities in this sector, as per the latest census figures.

Nonetheless, California stands out as the dominant force in the U.S. entertainment sector, accounting for approximately 35% of all jobs related to film, television, sound, and a staggering 25% of new media positions, according to recent data. Moreover, it hosts around 37% of industry managers, freelance artists, and performers.

For the analysis, we looked at industries contributing to the creative economy: film, television, and audio; conventional media; digital media; visual arts; artists, performers, and managers; advertising; architecture; fashion; and design and manufacturing. Over a five-year span, traditional media experienced the most significant job loss (34,993), while new media saw the largest increase in jobs during that period (22,505). Interestingly, new media now makes up 31% of all creative jobs in California, surpassing film, television, and audio which accounts for 17%.

To combat excessive filming outside of Los Angeles, locals have started the “Stay in LA” campaign, advocating immediate actions to boost local film productions. Additionally, it encourages movie studios to promise an increase of at least 10% in LA-based productions over the next three years.

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2025-03-28 02:54