New Report Shows California Film And TV Production To Be Difficult and Expensive

According to new report by the Milken Institute, “A Hollywood Reset: Restoring Stability in the California Entertainment Industry,” California’s film and TV productions have become incredibly difficult and expensive, leading to an increase in productions being done overseas and elsewhere.

The report’s authors, Kevin Klowden and Madeleine Waddoups, suggest that studio executives and U.S. policymakers should be actively considering this fact. “Policymakers and business leaders alike need to understand that the decline of filmed entertainment in California is not only real but at significant risk of being irreversible as workers and companies flee both the industry and the state,” say Klowden and Waddoups.

The report particularly singles out the extremely high permit cost in the California area. According to the report, the cost for a permit in L.A., for example, is $3,724, while permits in other competing filming areas cost significantly less, such as $1,000 in New York, $540 in London for a large crew production, and $400 in Atlanta. The report also shows that LA has a larger amount of added fees than other competing areas, with fees for the use of drones, helicopters, or traffic lane closures not being as prevalent in areas like London and Sydney, which the report claims add to the increased difficulty in obtaining permits in California.

The report claims that much of these added costs stem from the nonprofit structure of California’s local film office, FilmLA. As explained in the report, since FilmLA doesn’t operate through any local government, like other filming offices in New York, London, and Atlanta, there is little to no subsidization.

The report also cites other factors contributing to the ballooning costs in all aspects of California film productions, such as California’s extremely high living costs, which have significantly risen since the COVID-19 pandemic. The report also cites California’s lack of tax incentives, exchange rates, and better healthcare options outside the U.S. as huge inciting factors.

The report proposes fixes to many of these issues, the first of which is a streamlined application process for permits and tax credits. Other fixes proposed in the review include less need for productions to calculate each job required for a film or TV project and a consistent four-year review of the incentives program by the California Film Commission. The most crucial fix proposed in the report is a reconsideration of FilmLA’s independent structure.