News / USA

TV, Film Production Leaving Los Angeles

US, Foreign Cities Compete for Hollywood Productionsi
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Elizabeth Lee
November 21, 2012 5:28 PM
Many people call Los Angeles, home of Hollywood, the entertainment capital of the world. But much of the city's television and film industry is leaving Los Angeles for other cities in the United States and further afield. Elizabeth Lee reports from Los Angeles to find out why.
Los Angeles, the home of Hollywood, is what many people call the entertainment capital of the world.  But much of the city's television and film industry is leaving Los Angeles for other cities in the United States and other countries.

Steve Michelson is part owner of a catering company that feeds the cast and crew of several Los Angele-based shows.  He says that in recent years, business has not been good.

"I have individuals doing jobs that two or three people used to do," said Michelson.  "A company yesterday called me; they have five catering trucks they want to sell me.  They want to go out of business."

Some caterers for the television and film industry are leaving Los Angeles, following productions to other cities.

The president of Film LA, Paul Audley says there has been a dramatic change, particularly in the television industry.

"This year, for example, we know of the 23 new television dramas," Audley noted.  "Twenty-one of them are going out of state and they used to virtually all be filmed here.  We had more than 80 percent of television, and now we're down to about 40 percent."

Universal Television's Bela Bajaria says studio executives consider two main factors when deciding where to shoot a film or TV show.

"A big part of it is obviously creatively, that we can really realize what's on the page.  The other equally as important part is actually a tax incentive," Bajaria explained.  

Bajaria says cities outside of Los Angeles started becoming attractive to studios about a decade ago.  

"It was about 10 years ago, New Orleans really came out with some first tax credits and a couple of the other states really followed."

In 2004, New Orleans hosted 16 feature film or TV projects.  This year, there are more than 50 productions says Katie Williams, director of Film New Orleans.  Williams says state tax incentives have also helped develop the city's local film industry.

"Ultimately at this point, anything a movie needs to make the project can be found here in this state and specifically in New Orleans, so with that, comes jobs," Williams said.

The same is true for New York, another state that offers major incentives for the film and television industry.

Douglas Steiner is chairman of Brooklyn-based Steiner Studios, which is expanding because business is good.

"It makes money for the state, it makes money for the city," noted Steiner.  "[Mayor Michael] Bloomberg makes it easy to shoot in New York, and Governor [Andrew]  Cuomo has made it affordable to shoot in New York, and [it] employs tens of thousands of people that would otherwise not be working."

Film LA's Paul Audley says that although California also offers financial incentives to television and film companies, they are not as generous as other states across the United States.  

"Unfortunately, we don't have enough of that money available to truly compete," Audley explained.

And it is a global competition with countries in Eastern Europe as well as Canada, Australia, New Zealand, and Britain vying for Hollywood's entertainment industry.

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Comment Sorting
by: Chan from: China
December 09, 2012 10:25 AM
Why this material can not be downloaded? I do need it to practice my English. And I have to download it in order to use it because of the extremely slow browsing speed.

by: Rena Moretti
November 22, 2012 3:16 PM
Once again Hollywood is hiding its head in the sand and pretending that incentives is all that's needed.

2 problems:

1) Other states are wasting their money paying for films to be shot there with money that would be better used elsewhere. Should we do that too? As a taxpayer, I say no.

2) Blaming the incentives ONLY is a surefire way not to confront the other, very real problems, such as inflated salaries, inflated filming permits, inflated prices for good and services etc... that are commonplace in L.A.

Incentives have existed for 20 years, but L.A. Unions and the Los Angeles area politicians have ignored the problem as long as nothing changed much. They still are as their sole response is a taxpayer money giveaway.

Finally, it's not just the film industry that leaving. All industries are leaving L.A. It is the 2nd most over-taxed city in the country and more taxes just got passed and more taxes are being proposed.

Blaming tax incentives without looking as our own taxation and price structure is just out of touch with reality (but then again we live in a city where every network is claiming to be #1 somehow, all evidence to the contrary notwithstanding).

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