Why production has left Hollywood

There was a time when Hollywood referred to a neighborhood in the middle region of Los Angeles.

Nowadays, “Hollywood” came to represent the entire indigenous entertainment business – and at a intersection.

The name area is no longer a crowded production center, as it chases the tax advantages of studios and lower labor costs abroad. Making a movie or television series is more expensive than ever, especially after the strikes and actors strikes that reshape how advertisements are paid in the new flow economy.

Many of the industry tried to correct the movement to other domestic attraction centers such as Georgia, New York, Texas, New Mexico and North Carolina, and international places such as Canada, England, Hungary, Hungary, Croatia, Romania and New Zealand.

In July, California Gov. Gavin Newsom increased the state’s total film and TV tax loan to $ 750 million to try to encourage further production in Los Angeles.

President Donald Trump drew attention to the issue on Monday when he reiterated tariff threats in films outside the USA.

“Our filmmaking business was stolen from the United States, by other countries, just like a baby stealing sugar.

Trump made similar comments in May. As it was at that time, it is not clear how to apply these tasks, who they will target and who will lift the potential bill. Trump’s actor Jon Voight, who was appointed as a “private ambassador” to Hollywood, said tariffs will only be applied “under certain limited conditions” and the management will focus. Development of federal tax incentivesTo review the tax code, to create joint construction treaties with other countries and to provide subsidies for infrastructure.

While Trump revives the threats, there are still many unanswered questions as to how the US can put a tariff in films and to bring back the production to Hollywood.

Forrester’s Vice President and Research Director Mike Proulx said, “Films are not cost -effective, there is no services, it remains unclear how to place a service in a service, but if some logistics gaps are found and implemented, it will cause chaos in the entertainment industry.” He said. “So what happens in the question? Where is the line between a film and a limited series of time?

Film and TV production is not always simple. Some productions will attract part of a film internationally and attract parts at home. Are films taxed according to the percentage of the film outside the USA? What does this mean for foreign films released in the country?

“What if the primary studio is in the USA, but if it needs to be taken in the position of the film, because … The story … takes the characters on a journey. Is there a threshold?” Alicia Reese asked Wedbush analyst. “There are too many questions.”

Industry experts are also worried about how tasks can affect relations with other countries if they can be applied. Hollywood relys on international box office sales to compensate for supreme film budgets. China has already limited the number of Hollywood films to be exhibited on the screens. Other regions can also retaliate and do the same thing.

“I strongly support the return to California and the United States,” I strongly support the return to California and the United States. ” He said. “The Congress should have encouraged a two -party competitive federal film to bring back production and jobs instead of getting a tariff that may have undesirable and damaging consequences.”

At the end of the day, Hollywood’s productions fall into something – Money.

The budgets are getting more bored. Fundamentally changing the view of the Media, fewer people go to cinema halls and studios no longer earn significant revenue from DVD sales. For this reason, studios should keep the bag wires more tight, or still confront the wrath of investors trying to calculate the dissolution of linear TV and profitable advertising revenue. Disney– Universal– Warner Bros. And Very big.

Some of the release from Los Angeles is the result of the development of domestic production centers, which offer better financial awards such as tax loans and cash discounts, offering better financial awards on the West coast. In the last twenty years, 38 states were crushed More than $ 25 billion incentivesAccording to a report of the New York Times.

These incentives allowed states such as Georgia to develop infrastructure for major budget productions and to develop a talented labor force of local crew members, craftsmen and technicians. Georgia offers these monetary advantages not only creates work in production, but as a way to support economic growth in the surrounding communities. Hotels, restaurants, timber gardens, car rental companies and even gas stations become a lump from local projects.

International production centers are the second part of this puzzle. Sites other than USA are not only attractive film incentives, but also cheaper labor and even health care. Actually, Los Angeles is a Survey of studio managers published by ProdPro in JanuaryA company that follows production trends. Toronto, Canada; England; Vancouver, Canada; Central Europe and Australia ranked higher than Los Angeles.

Canada, known as Hollywood North, has been the house of Hollywood film and television production for decades. Shows such as “Riverdale”, “Suits”, “Supernatural”, Once Upon A Time “,” Schitt’s Creek “and” Handsmaid’s Tale “were pulled just north of the Los Angeles border. On the film front, “Mean Girls”, “Twilight”, “Big Fat Greek Wedding”, “American Psycho” and “Scream VI”, some titles in Canada.

Like Georgia, Canada offers an attractive tax loan for state studios, but also developed a first -class industrial talent labor force in front of and behind the camera.

And the competition is warming abroad. More countries supported attraction infrastructures and increased generous tax incentives. Many countries also have more loose rules of what kind of projects are suitable for financial benefits. New Zealand, England, Ireland, Iceland, Australia, Norway, Italy, Hungary, Germany and Czech Republic is doing jockey for productions – And they get a shareAccording to ProdPro data.

For example, Australia and New Zealand have seen a 14% increase in the production of $ 40 million or more costly projects between 2022 and 2024. Meanwhile, the United States experienced a 26% drop.

“People will still have to film on the ground, Dedi said Wedbush said that the industry will not completely change the stories that are said to follow the attraction places that are only present in the United States. “Numerous parts of this film or part of this film may exist as easy as possible in the USA and in the sound phase, which is taken during the sound stage.”

“And the question lies here: How can we get the sound stages?” Continued.

Reese said that Los Angeles has made movements to encourage the current infrastructure to use the current infrastructure to use new tax incentives.

“We need to create a better tax structure to encourage more production, the base of production to be found in the USA.” He said.

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