June 16, 2026

MILE MARKERS ON THE ROAD TO DETROIT, SOCAL EDITION: Hollywood’s Mass Exodus: Why Film and TV Production Is Fleeing L.A. and What Can Be Done About It.

The contenders for governor are also battling to show that they can revive the industry with the right package of incentives. Newsom doubled the state program to $750 million in 2025. Everyone seems to agree it should be more — maybe a lot more — and that it should cover above-the-line salaries for actors, writers and producers.

“In my understanding, California’s rebate is one of the least beneficial for anybody who is financing motion pictures and television,” says Charles Roven, co-founder of Atlas Entertainment and producer of “Oppenheimer” and “Wonder Woman.” “It’s capped and it has no above-the-line.”

But the state can do only so much to compete with the 81 countries that have embraced filming as an economic development tool. The U.K. alone spent $2.2 billion on film and TV subsidies in 2024, and national incentives are often stacked on top of local rebates.

California “went into this knife fight without a weapon, and now folks are bringing guns,” says Xavier Becerra, the Democratic gubernatorial candidate who is the favorite to succeed Newsom.

As she runs for reelection, Bass has to walk a fine line between projecting confidence in the city’s ability to retain production and lobbying for more federal help for Hollywood. “I don’t feel like we’re going to lose our industry,” Bass says, noting that studios and networks are still grappling with the business changes wrought by the streaming revolution. “When all of that settles, I feel confident that we can maintain our industry.”

Once a pipe dream, the idea of a federal film subsidy now seems like a real possibility.

“In order to save this industry in America, we need to be competitive with tax credits,” says Sen. Adam Schiff, the California Democrat who is working on introducing an incentive bill in Congress. “We have a lot of our influence around the world as a result of American film and TV. We don’t want to lose that soft power.”

Advocates warn that unless the U.S. responds to foreign subsidies, Hollywood is at risk of becoming Detroit, which has bled jobs as automakers pursued low-wage labor and generous incentives in other states and abroad.

“This is supposed to be the film capital of the world,” said Noelle Stehman, a co-founder of the grassroots group Stay in L.A., at a rally for Raman’s campaign. “It should be the cheapest and easiest place to film. In fact, it is the most cumbersome and the most expensive. That cannot continue. If we don’t do something quickly, this is going to become the next Detroit.”

Mike Miller, vice president of the International Alliance of Theatrical Stage Employees, was raised in Cleveland. He also sees a parallel. “I watched the demise of steel and rubber and automotive manufacturing as I grew up,” he says. “This is identical in many ways. We have an undeclared trade war that our government is standing by and watching happen.”

Earlier: Fears grow of ‘Detroit-Style’ decline as Hollywood jobs evaporate.

UPDATE:

Posted at 5:22 pm by Ed Driscoll