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L.A. entertainment production fell last quarter, even as TV started to pick up

Los Angeles Entertainment Production Plummeted Last Year Amid Strikes and Industry Shifts

In a stark reflection of the tumultuous year that was 2023 for Hollywood, entertainment production in Los Angeles experienced a significant downturn, marking one of the lowest outputs in recent history. According to the latest report from FilmLA, the nonprofit organization responsible for coordinating film permits in the greater Los Angeles area, on-location filming days dropped by a staggering 12.4% compared to 2022. This decline underscores the profound impact of labor disputes, economic pressures, and evolving industry dynamics that have reshaped the epicenter of global entertainment.

The report, released earlier this week, paints a grim picture of an industry grappling with unprecedented challenges. Total shoot days in 2023 tallied just over 36,000, down from more than 41,000 the previous year. This figure represents the lowest level since the height of the COVID-19 pandemic in 2020, when productions ground to a near halt due to lockdowns and health restrictions. FilmLA's data encompasses a wide array of projects, including feature films, television series, commercials, and reality TV, all of which saw varying degrees of contraction.

At the heart of this production slump were the dual strikes by the Writers Guild of America (WGA) and the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA). The WGA strike began in May 2023 and lasted for 148 days, while SAG-AFTRA members walked off the job in July, extending their action for 118 days. These labor stoppages effectively paralyzed scripted television and film production across the board. "The strikes were a seismic event for the industry," said Paul Audley, president of FilmLA, in a statement accompanying the report. "They not only halted ongoing projects but also created a ripple effect that delayed restarts and deterred new investments."

Television production bore the brunt of the impact, with scripted TV shoot days plummeting by 16.2%. High-profile series like those on major networks and streaming platforms were forced to pause mid-season, leading to truncated episodes and delayed premieres. Reality TV, often seen as a more resilient segment due to its non-scripted nature, still suffered a 9.8% drop, as ancillary crews and locations were affected by the broader industry slowdown. Feature films weren't spared either, with a 10.5% decline in permitted shoot days, as studios postponed big-budget shoots to avoid the uncertainty of prolonged strikes.

Beyond the strikes, other factors contributed to the downturn. The lingering effects of the pandemic have altered production habits, with some companies opting for virtual production techniques or relocating to tax-incentive-rich locations outside California. States like Georgia, New Mexico, and even international hubs such as Vancouver and Atlanta have increasingly lured projects away from Los Angeles with generous rebates and lower costs. "LA is still the creative heart of the industry, but the business side is pulling productions elsewhere," noted industry analyst Sarah Thompson of the Entertainment Strategy Group. "The strikes amplified this trend, as producers sought stability in non-union environments or abroad."

Economically, the fallout has been substantial for the Los Angeles region, where the entertainment sector employs hundreds of thousands and generates billions in revenue annually. The Motion Picture Association estimates that film and TV production contributes over $100 billion to California's economy each year, with LA County alone accounting for a significant portion. The production dip led to widespread job losses, from grips and electricians to caterers and location scouts. Local businesses, including prop houses, equipment rental firms, and even restaurants near filming sites, reported sharp revenue declines. "It's not just the stars who suffer; it's the entire ecosystem," said Maria Gonzalez, a union representative for below-the-line workers. "Many crew members went months without work, dipping into savings or taking side gigs outside the industry."

Delving deeper into the numbers, FilmLA's breakdown reveals intriguing patterns. While overall production fell, certain categories showed resilience or even growth. For instance, commercial filming increased by 2.3%, buoyed by brands eager to capitalize on post-pandemic consumer spending. Student films and independent projects also saw a modest uptick, as aspiring filmmakers filled some of the void left by major studios. However, these gains were insufficient to offset the losses in high-volume sectors like TV dramas and pilots, which dropped by 18% and 22%, respectively.

The strikes' resolution in late 2023 brought a glimmer of hope, but recovery has been sluggish. Many productions that were greenlit pre-strike faced delays in ramping up due to backlogs in permitting, talent availability, and supply chain issues for sets and costumes. Streaming giants like Netflix and Amazon, which had been aggressive in content creation, scaled back amid cost-cutting measures and a reevaluation of their "peak TV" strategies. The industry is now contending with a content glut from previous years, leading to fewer new commissions.

Looking ahead, experts predict a gradual rebound in 2024, though not to pre-strike levels. FilmLA forecasts a potential 5-7% increase in shoot days, driven by pent-up demand and new labor agreements that address key issues like residuals from streaming and protections against AI encroachment. The WGA and SAG-AFTRA deals, hailed as historic by union leaders, include higher minimum wages, better health benefits, and safeguards for performers' likenesses in the age of digital replication. "These agreements lay the foundation for a more sustainable industry," said SAG-AFTRA president Fran Drescher in a recent interview. "But we must remain vigilant as technology evolves."

Yet, challenges persist. The rise of artificial intelligence in scriptwriting, editing, and even acting simulations poses existential questions for traditional production models. Additionally, global competition continues to erode LA's dominance. Productions like Marvel's latest blockbusters have increasingly filmed in the UK or Australia, enticed by subsidies that can cover up to 40% of costs. Domestically, New York's film scene has surged, with a 15% increase in production last year, partly due to its own incentives and proximity to financial hubs.

The human stories behind the statistics add a poignant layer to this narrative. Take, for example, veteran location manager Tom Reilly, who has scouted sites for over 30 years in LA. "2023 was the toughest year of my career," he shared. "We had projects lined up that vanished overnight. It's not just about the money; it's the passion for storytelling that keeps us going." Similarly, aspiring actress Lena Kim recounted months of auditions turning into dead ends. "The strikes were necessary, but the aftermath left many of us in limbo," she said.

On a broader scale, this production falloff reflects deeper shifts in how entertainment is consumed and produced. The streaming wars have cooled, with platforms focusing on profitability over volume. Hits like "Barbie" and "Oppenheimer" in 2023 demonstrated the enduring appeal of theatrical releases, yet the box office recovery remains uneven. Independent filmmakers, meanwhile, are turning to innovative funding models like crowdfunding and NFTs to bypass traditional gatekeepers.

As Los Angeles navigates this new landscape, city officials are stepping in with initiatives to bolster the industry. Mayor Karen Bass has proposed expanding tax credits for local productions and investing in workforce development programs to train the next generation of talent. "Entertainment is the soul of LA," Bass stated at a recent press conference. "We're committed to ensuring it thrives, strikes or no strikes."

In conclusion, the 2023 decline in LA's entertainment production serves as a cautionary tale of an industry at a crossroads. While the strikes achieved vital gains for workers, they exposed vulnerabilities in a system long reliant on Hollywood's gravitational pull. As 2024 unfolds, the focus will be on adaptation—embracing new technologies, fostering inclusivity, and reclaiming lost ground. Whether LA can fully rebound remains to be seen, but its legacy as the dream factory endures, even in the face of adversity. The story of Hollywood's resilience is far from over; it's merely entering a new act.

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