L.A. Film Industry Faces Major Challenges Amid Production Shift

LOS ANGELES, June 2, 2025 — The film and television industry in Los Angeles is grappling with significant changes as productions continue to move away from the city, raising concerns among stakeholders.

L.A. Mayor Karen Bass recently signed a new ordinance aimed at cutting municipal red tape to encourage local production amid fears of runaway production affecting Hollywood’s future.

The report titled “Hollywood Exodus” published by Variety Intelligence Platform reveals critical data on this trend. It outlines the shift in film and TV production from L.A. and examines the financial factors contributing to this migration, along with its impact on both old and new production hubs.

Data shows that film production in L.A. dropped to levels not seen since 2024, with Q1 of 2025 reflecting the ongoing austerity in Hollywood. Insights from the soundstage industry indicate that the boom-and-bust cycle within content creation plays a significant role in shaping the landscape for production facilities across the globe.

Information collected from film commissions and economic trackers highlights fluctuations in production over recent years, laying the groundwork for understanding what the “new normal” may look like for the entertainment industry.

This situation is further complicated by the economic policies of the new Trump administration, making it increasingly difficult to predict the future landscape of film production, especially concerning foreign films.

As the shift continues, the outlook for both the entertainment business and the city of Los Angeles remains precarious, with implications that could lead to transformative changes moving forward.