The possibility of Los Angeles following in the footsteps of Detroit—a city that crumbled after its primary industry collapsed—loomed over a recent town hall meeting focused on Hollywood’s film and TV production crisis. The event, held at Evergreen Studios in Burbank, brought together industry leaders, policymakers, and workers to discuss the alarming decline in entertainment production in California and the urgent need for increased tax incentives to keep jobs and businesses in the state.
The discussion extended beyond traditional production concerns to address another critical area in jeopardy: postproduction and scoring. This segment of the industry is experiencing significant challenges as work continues to migrate to regions offering more lucrative financial incentives.
A Dire Warning
Noelle Stehman, a member of the “Stay in LA” campaign, delivered a stark warning during the event: “This is not hyperbole to say that if we don’t act, the California film and TV industry will become the next Detroit auto.” Her remarks highlighted the urgency of the situation as California lawmakers consider proposals to expand the state’s entertainment production tax incentive program.
California State Senator Ben Allen and State Assemblyman Rick Zbur were present to advocate for the proposed increase in tax credits. They emphasized that these incentives are not corporate giveaways but essential measures to protect middle-class jobs. "The studios don’t care where they do the work. They’ll do it anywhere," Allen told the standing-room-only crowd. "They’re still producing shows. What many of our colleagues fail to understand is that this is a middle-class problem. The studio heads are going to bed in Bel-Air no matter what.”
Zbur echoed this sentiment, arguing that the tax incentives are a job-creation program. “This is not a tax giveaway,” he said. “It’s keeping people in their homes and off unemployment rolls. If we don’t do this, it’s going to cost far more than these tax credits ever would.” He also pointed out that other governments worldwide have implemented similar programs because they pay for themselves by attracting desirable jobs. “Why are we letting others cherry-pick the jobs we’ve cultivated here?”
The Data Paints a Bleak Picture
The town hall took place just hours after FilmLA released its latest production data, showing a 22 percent decline in shoot days in Los Angeles during the first quarter of 2025 compared to the same period last year. Alex LoVerde, CEO of ProdPro, noted that these jobs haven’t disappeared—they’ve relocated. Since 2022, the U.S. has seen a 26 percent drop in production, while Australia has gained 14 percent.
The panels on post-production and music underscored the devastating impact on these sectors. Bobbi Banks, an ADR supervisor, shared her struggle of working only three months in the past 18. She recounted difficult conversations with a mentee considering a move to L.A. for a career in the industry. Visual effects artist Efram Potelle described having painful discussions with his family about financial instability due to reduced opportunities.
The music and scoring panel painted an even grimmer picture. Peter Rotter and Jasper Randall, founders of Encompass Music Partners, revealed that booked recording days for L.A. scoring stages plummeted from a high of 127 days during Peak TV in 2022 to just 11 days so far this year. They explained that scoring work costs two-thirds less in Vienna, Austria, and 90 percent less in Bratislava, Slovakia.
Karen Baker Landers, a two-time Oscar-winning supervising sound editor, called for a carveout in the tax incentive program specifically for postproduction. She pointed out that states like New York and Louisiana, as well as countries like Australia and Spain, already offer such carveouts, making them attractive destinations for production. “Even if movies are shot elsewhere, they used to come back to California for post-production. That’s no longer the case,” she said. “Visual effects, sound, picture, and music have been leaving California, chasing tax incentives. This has cost the state thousands of jobs, not just in entertainment but across supporting industries.”
Legislative Efforts Underway
State policymakers recognize the severity of the situation. Governor Gavin Newsom has proposed more than doubling the cap on California’s film and television incentives program. Additionally, lawmakers have introduced two bills aimed at expanding and enhancing the existing framework. If passed, these measures could increase the incentive rate to 35 percent and make short TV shows, animated projects, and certain unscripted titles eligible for the credit.
While these proposals represent a step forward, organizers of the town hall stressed that tax incentives alone won’t solve the problem. “We know that it will take more than tax incentives to sustainably revitalize L.A.’s entertainment economy,” read the mission statement from the coalition behind the event.
A Multi-Pronged Campaign
Monday’s town hall was part of a broader effort to bring production back to Los Angeles. On April 6, hundreds gathered at the “Stay in L.A.” rally in Burbank to advocate for local production. Days later, Rep. Laura Friedman and industry unions sent a letter to the Motion Picture Association urging studios and streamers to prioritize producing content in Hollywood.
Industry leaders also acknowledged the need for internal solutions. During the town hall, Senator Allen encouraged unions and creatives to engage in dialogue, stating, “Tough conversations must be had at the labor table.” Stephanie O’Keefe, president of the music union AFM, stood up in the audience and affirmed her organization’s willingness to participate in those discussions.
A Pivotal Moment
Karen Baker Landers summed up the stakes: “I do believe that the world is watching what California does with these incentives. They know that if we get it right, it’s game on again for California.”
As the legislative process moves forward, the fate of California’s entertainment industry hangs in the balance. The question remains: Will the state rise to the challenge and reclaim its status as the global hub of film and TV production, or will it risk becoming a shadow of its former self, much like Detroit?
