Los Angeles Loses $100 Million Netflix Drama as Film Shoot Days Drop 20% and 30%
Updated
Updated · Los Angeles Times · Aug 20
Los Angeles Loses $100 Million Netflix Drama as Film Shoot Days Drop 20% and 30%
3 articles · Updated · Los Angeles Times · Aug 20
Summary
A Netflix crime drama with a budget above $100 million and a 350-person crew moved from Los Angeles to New Jersey after California rejected its tax-credit applications twice.
FilmLA data show the broader slump behind that loss: second-quarter L.A. shoot days fell 20% for feature films and 30% for TV from already weak year-earlier levels.
The fallout has spread through the local economy, with about 57,000 entertainment jobs lost in four years and more than 80 production-services businesses closed since 2022.
Producers and lawmakers blame a mix of thinner incentives, high labor and permitting costs, and fragmented rules across more than 100 jurisdictions, even after California expanded credits to $750 million a year.
The pressure is now political as rival hubs from New Jersey to Vancouver and the U.K. keep winning work, raising doubts that Hollywood remains the industry’s default center.
Why is Hollywood losing its own stories to rival states despite billions in new tax incentives?
Will hidden legislative tax caps and soaring budgets permanently erase Los Angeles from the physical production map?
Los Angeles Film Production Down 36%: The 2026 Entertainment Exodus and the Fight for Hollywood’s Future
Overview
Between 2022 and 2026, Los Angeles faced a major production crisis as film and television projects steadily migrated out of California. This exodus led to the loss of about 57,000 entertainment jobs and forced over 80 local production service companies to close. A key example is a $100 million Netflix crime drama that abandoned Los Angeles after failing to qualify for California’s strict tax credits, relocating instead to New Jersey, where incentives are easier to secure. As post-production work also began to leave due to limited state benefits, lawmakers responded with new incentive proposals, while some filmmakers turned to AI and virtual production to cut costs and keep projects local.