The crisis in LA’s film industry is becoming more and more urgent.
New figures released by FIlmLA last week show that film and television production in the second quarter of 2026 fell 13% from the same time period last year, despite generous tax incentives from the state and a promise of faster permits from the city.
Worse, the pace of filming had fallen 8% since the first quarter of this year. Feature film production fell nearly 20%.
These are crisis numbers.
The Melrose Gate entrance to Paramount Pictures. Getty Images
And the irony is that feature films are enjoying a commercial comeback.
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.
The Walt Disney Company main gate in Burbank. GC Images
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.”
An aerial view of the Paramount water tower. Getty Images
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.
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