California Gov. Gavin Newsom says Hollywood is returning to its glory, but industry experts warn it may be too late. Major studios are opting to film outside California due to cheaper locations.

Industry Experts Weigh In

Shadowcast Pictures owner Jay Ellison says, ‘We need a major rescue, like, immediately.’ Paramount Skydance CEO David Ellison is considering relocating Paramount’s headquarters, which could divert billions of production dollars from California.

Production of scripted television shows in Los Angeles is down nearly 30% since 2019, according to Luminate data. StageRunner founder and CEO Jason Fisher agrees that state leaders were ‘too late’ in recognizing the production problem plaguing the birthplace of entertainment.

Tax Incentives and Competition

California’s Film and Television Tax Credit Program is on track to generate $6.6 billion in direct production spending. However, experts say financial incentives are not the only factor luring studios elsewhere. Rival production hubs, such as Atlanta, have developed extensive infrastructure and experienced local crews.

Ellison and Fisher agree that state leaders were ‘too late’ in recognizing the production problem, questioning whether Hollywood could ever fully reclaim its former dominance, even with Newsom’s expanded tax credit.

Original reporting: Fox News (HLL/CB) — read the source article.