Hollywood’s production slowdown worsens as LA soundstage use hits low

• California soundstage occupancy fell to 63% in 2024, down from 90% between 2016 and 2022. The drop is attributed to productions leaving the state for regions offering more generous tax incentives.
• Competing markets like Georgia, Canada and the U.K. offer larger or uncapped incentives and have doubled production capacity in recent years, attracting more projects.
• The decline in productions has broader economic implications, as California’s film and TV industry supports roughly 130,000 jobs, making it a key sector of the state’s economy.

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Soundstage occupancy in California has dropped to just 63%, according to a new FilmLA report. This is the lowest percentage in years, reflecting a major decline in in-state filming.

Hollywood may have the infrastructure. But more and more productions are packing up and heading out.

From 90% full to nearly one-third empty

Soundstages are the soundproof buildings where movies, TV shows, and commercials are filmed. From 2016 to 2022, California kept those stages nearly full, with occupancy levels in the 90% range.

Now, in 2024, that number has dropped to 63%, according to FilmLA’s latest Sound Stage Production Report. That’s a sharp decline, and industry experts are pointing to one key factor: tax incentives.

Other states are outspending California

California offers productions a 20 to 25% tax credit on qualified costs, especially when crews are hired locally, or filming takes place outside of L.A.’s typical studio zones. Bonus credits are available for post-production work completed in-state.

But a new bill could raise that number to 35% for some L.A.-based productions, part of a bigger push to keep filming in California.

However, other locations—such as Georgia and Canada—offer bigger, sometimes uncapped, incentives. Productions are following the money.

Actor Rob Lowe recently discussed the issue on his podcast, “Literally! With Rob Lowe.” He explained why his game show, “The Floor,” is being filmed in Ireland instead of Los Angeles.

“It’s cheaper to bring 100 American people to Ireland than to walk across the lot at Fox, past the sound stages and do it there,” he said.

In the same episode, Lowe added:

“It’s criminal what California has let happen. It’s criminal. Everybody should be fired.”

Other cities are catching up quickly

California still has more than 8 million square feet of production space—more than anywhere else. However, FilmLA reports that states like New York and Georgia, as well as international markets like Ontario and the U.K., have doubled their stage-based production capacity over the last five years.

Philip Sokoloski, spokesperson for FilmLA, said:

“The jurisdictions that perform well from here on out—the ones with sustainably high levels of sound stage occupancy and job creation—will be those invested in film project attraction at the country, state and regional level.”

Occupancy vs. utilization—and what it really means

FilmLA also emphasized the difference between soundstage occupancy and utilization. A stage only creates jobs when it’s in active use, not just sitting ready.

Another trend is affecting production, too: TV episode counts are dropping while budgets continue to rise. That means longer delays between seasons—and fewer jobs for crews in between.

The bigger picture for California’s economy

Despite this downturn, the film and TV industry remains critical to California’s economy.

As of Fall 2024, an Otis College Report on the Creative Economy found the state supported roughly 130,000 jobs.

Losing productions isn’t just a Hollywood headline—it’s an economic one, too.