The film industry in Los Angeles finds itself at a critical juncture, with tensions mounting by the day.
Recent statistics from FilmLA highlight a troubling trend: both film and television production in the second quarter of 2026 have plummeted by 13% compared to the same period last year. This decline persists despite the state offering appealing tax incentives and the city’s commitment to speeding up permit processes.
Even more concerning is that the rate of filming has decreased by 8% since the year’s first quarter, with feature film production experiencing a drastic near 20% downturn.
These figures underscore a significant crisis.
Ironically, this downturn occurs even as feature films are witnessing a resurgence in box office success.
As film critic Johnny Olesinski notes, films are enjoying a rebound at the box office. The immense success of “The Odyssey” is an obvious example, but that movie was always expected to be a winner.
More surprising are the Michael Jackson biopic, “Michael,” which has brought in a billion dollars despite the late singer’s controversial past; and “Obsession,” which was made for less than a million dollars and has made nearly half a billion.
So film production ought to be particularly active in LA. The fact that film production is going down is a sign of how badly LA is missing out on the boom.
LA’s leaders, both in government and in the entertainment industry, need to take drastic action.
Tax credits cleary aren’t cutting it. And other cities and states can offer similar incentives, in what has become a “race to the bottom.”
LA needs to provide a qualitatively better environment for filming.
It’s hard to imagine a better environment than the one provided by Southern California’s natural beauty and abundant talent.
But the business climate is terrible.
Homelessness, crime, and regulations — the same plagues that haunt every other industry in LA — are threatening the film industry as well.
But the film industry also has large and powerful unions to deal with. And often, these unions cause massive problems.
Labor strikes have been more frequent in recent years. And union rules and wages mean that productions that could be easy, quick, and cheap are difficult, laborious, and wasteful.
Hollywood should be speaking out. But it’s not, because of politics.
It’s easier to denounce President Donald Trump for ICE raids — though they are making our streets safer — than it is to denounce unions for making the city poorer.
Hollywood needs more maturity and leadership from union leaders — lest they lose the industry they are supposed to organize.