Low incentives and complicated state regulations, combined with high housing and business costs, have rendered California unable to keep Hollywood from moving production to other states and countries, according to an entertainment industry report released on May 27 by the Milken Institute, a California-based think tank.
Hollywood’s in-state production has dropped in the past two years as other states and international destinations continue to increase industry incentives, according to the report’s authors, Kevin Klowden, executive director for the Milken Institute Finance, and Madeleine Waddoups, a graduate teaching assistant in the Luskin School of Public Affairs at the University of California–Los Angeles.
The industry has contributed for more than a century to the state’s cultural and physical exports, has a huge impact on tourism, and has also boosted the fields of design, technology, and innovative manufacturing, according to the report, adding that numerous other industries depend on the movie and television business and its contribution to the state’s identity, jobs, and exports.
The industry has seen many highs and lows in California over the past 100 years or more, but has never faced the “wide ranging” threat now posed to production after television reached its peak in 2021, the authors said.
“The consequences for California have been significant,” the institute said.
The Golden State lost $4.14 billion in industry output and more than 17,200 jobs from 2019 to 2023.
When is the earthquake coming to rid us of half of that problem naturally, no intervention needed.
Not shedding a tear. GA and Canaduh have prospered for decades and Cali is just now bitchin. Hey Governor (current amd future), manage your state and not worry about others. When u have fixed it (unlikely), people may return. Stay in the red and squeeze more….well good luck with your future endeavors.