What we lose if Hollywood becomes the Detroit of the entertainment industry

Among the pleasures of seeing the hit buddy comedy “One of Them Days” over the weekend was that jolt of recognition at the sight of a genuine Los Angeles landmark on the big screen: the Norm’s restaurant on La Cienega Boulevard, where Keke Palmer’s striving character works, one of the country’s best remaining examples of Googie-style architecture.

The film from first-time feature director Lawrence Lamont, starring Palmer and Grammy-winning musician SZA, is an unusual creation from Hollywood, and not just because it’s the kind of light, original comedy that studios supposedly don’t make anymore. (So far, it has grossed a winning $34.5 million on a reported $14-million budget.)

It’s also a reminder of how few successful movies are actually filmed in Los Angeles these days, despite the fact that the studios and production firms are mostly still headquartered here, including Sony Pictures, its TriStar unit and Charles D. King’s Macro, the companies responsible for “One of Them Days.”

Southern California’s entertainment economy has taken a beating over the last few years. The COVID-19 pandemic, two overlapping labor strikes and the pullback of overspending during the streaming wars compounded a structural problem for the movie business’ hometown: It costs too much to film here.

Film and TV shoots have fled for cheaper locales, enticed by generous tax incentives offered by rival states and countries. Those threats have existed for a long time, but have lately tipped over into what some public officials now recognize as crisis territory.

According to data from nonprofit agency FilmLA, 2024 was the second slowest year for production on record in the Los Angeles area, only besting 2020, the year of the coronavirus shutdowns. Reality TV’s exodus was especially striking.

A recent survey of executives by production tracking firm ProdPro ranked the most desired places to shoot. California ranked sixth (bested by Toronto, the U.K., Vancouver, Central Europe and Australia).

The devastation from the wildfires, which destroyed the homes of many in the industry both above and below the line, might be the last straw for some workers considering taking their talents elsewhere. The fires, in fact, underlined the lack of activity in L.A. It was relatively easy to find TV productions that were at least briefly shut down by the disaster, such as “NCIS,” “Hacks” and “Abbott Elementary.” Film, much less so.

The struggles aren’t solely due to high costs of doing work in Los Angeles. Globally, the number of film and TV productions starting principal photography in 2024 still lagged 11% behind the pre-strike year of 2022, suggesting that an overall retrenchment is largely to blame for the sluggish recovery. But it’s clear that when production is coming back, it’s mostly doing so elsewhere.

And the mood is not great going into 2025. Executives polled by ProdPro said they expect production volume to increase this year, but the vast majority said budgets would be the same (42%) or slightly lower (39%). They’re looking at several potential methods of cutting costs: Yes, tax breaks was No. 1 on the list, but other popular options on the table include shorter schedules, digital workflows and fewer episodes.

Analysts and writers such as NYU’s Scott Galloway have compared Los Angeles’ plight to the hollowing out of the U.S. auto industry in Detroit. If you look at crew members’ social media accounts, those parallels don’t seem quite so hyperbolic. There are surely similarities to sectors such as domestic manufacturing and agriculture, which were also pounded by global competition, technological disruption and automation.

Some are taking action. Gov. Gavin Newsom last year proposed more than doubling California’s tax credit for film production to $750 million. That would probably help matters, but only to a point. California’s tax incentive program currently does not help cover costs for above-the-line talent, which limits the amount that studios and streamers can save on individual productions.

Crew members are doing what they can to campaign for help. In the wake of the Eaton, Hughes and Palisades fires, crew workers launched a petition calling for uncapping the tax incentive for productions that shoot in L.A. County for the next three years as part of the overall disaster relief effort. The online petition also asks that studios and streamers commit to “at least 10% more production in L.A.” over that period of time. But companies are going to follow incentives.

Movies like “One of Them Days” tend to make the most of the fact that they film in Los Angeles, lovingly depicting local hangs, eateries and other places of interest to the point where it’s hard to imagine them shooting anywhere else. I got even more nostalgic while revisiting Ti West’s horror-thriller “MaXXXine,” which takes viewers on a bit of a 1980s L.A. guided tour, making ample use of the Universal Studios backlot. Like many films that showcase Los Angeles, “MaXXXine” is about Hollywood’s favorite subject — itself.

These are fun examples, of course. But it would be nice if it were easier to justify shooting a movie in Los Angeles, even when the movies aren’t literally about the city or its signature export. And being about L.A. isn’t even enough on its own anymore. The pilot for the show “Suits L.A.” was shot in Vancouver, before it moved to its namesake town, lured by a tax credit.

Stuff we wrote

FCC demands CBS News turn over ‘60 Minutes’ interview amid Trump lawsuit. The latest development comes as Paramount Global lawyers engaged in talks to settle Trump’s $10-billion lawsuit over edits to a “60 Minutes” interview with former Vice President Kamala Harris, a move that should deeply concern those who care about press freedom.

‘Jeopardy!’ and ‘Wheel of Fortune’ dispute escalates as Sony moves to cut out CBS. Culver City-based Sony said it would send new episodes directly to television stations, escalating the contract dispute with CBS. Paramount-owned CBS said it would go to court to try to block Sony’s action.

Sundance indie film market was sluggish with few deals in Park City. Indie studio Neon has broken the ice with the first deal at Sundance, acquiring the horror film “Together,” starring Alison Brie and Dave Franco. Netflix bought “Train Dreams.”

Sale of Wicked Witch’s hat from ‘The Wizard of Oz’ sparks fraud lawsuit. A collector consigned a hat worn by the Wicked Witch in “The Wizard of Oz” movie to Heritage Auctions. He is now suing the auction house for fraud.

Women who accused Russell Simmons allege he owes them nearly $8 million. Multiple women who have accused the hip-hop mogul of sexual assault say he has failed to settle claims against him.

Media moves:

• Former ‘Meet the Press’ moderator Chuck Todd exits NBC News
• CNN anchor Jim Acosta exits after turning down midnight shift
• Former President Biden signs with CAA

Number of the week

Comcast Corp. shares tumbled last week after the company lost more broadband subscribers than Wall Street expected in the fourth quarter. Cable providers are facing major competition from wireless carriers that also offer home internet service.

Overall, revenues and profits were up. The Universal film studio had a strong quarter, powered by “Wicked” and other box office hits.

The Philadelphia cable giant’s streaming service Peacock had a so-so quarter, with no net subscriber increase, leaving the unit at 36 million paid accounts. (Though not losing subscribers might count as a win, considering the company got a big boost from the Olympics earlier in the year.)

For the full year, Peacock lost Comcast $1.8 billion, which was not as big of a loss as it had in 2023, though still nowhere close to profitability.

Meanwhile, the media business is bracing for massive change as the company prepares to spin off its basic cable networks, except for Bravo. Comcast executives said 98% of Peacock viewing doesn’t include the to-be-spun networks.

Film shoots

FilmLA data shows on-location production crawling back to “normal” post-holiday numbers, but still down significantly year-over-year.

Finally ...

Watch: “Cunk on Life” (Netflix), “Don’t Look Back” (1967) (Max)