Los Angeles Production Activity Declines in Q3: Reality TV Hit Hard, State Incentives Yet to Make Impact
Production activity in Los Angeles saw a decline in the last quarter, dropping below levels seen during the 2023 writers and actors strikes. The decrease was particularly notable in reality TV production, which experienced its second-lowest quarter in the past 15 years. Despite the recent expansion of the California film and TV tax credit, the impact of this change has not yet been reflected in the production data. FilmLA reported a total of 2,631 TV, film, and commercial location shoot days for the quarter ending Sept. 30, which was 145 days fewer than the previous quarter during the 2023 strikes.
Reality TV production, which was largely unaffected by the 2023 strikes, has been a significant contributor to TV production in Los Angeles, representing around 50-60% of activity in the region. However, in the third quarter, reality TV production declined by 42% compared to the previous quarter, totaling 649 days. This marked one of the lowest quarters for reality TV production since 2010, with the exception of the pandemic-induced halt in April-June 2020.
Other TV productions, including comedies, dramas, and pilots, also experienced a decline of 33% compared to the prior quarter. Despite the overall decrease in production activity, FilmLA remains optimistic about the future, noting that productions are beginning to secure permits for the fourth quarter, supported by the enhanced state incentives. Feature film production showed a slight increase from the previous year, but still remained 30% below the five-year average.
California lawmakers recently boosted the film and TV subsidy to $750 million annually and expanded the eligibility criteria for productions to receive up to 40% of eligible costs. While the state has broadened the scope of eligible productions, including sitcoms, animation, and large-scale competition shows, game shows, talk shows, and commercials are not covered under the expanded incentives. Production declines have been observed globally since the peak of post-pandemic activity in 2022, with decreases reported in Georgia, New York, Canada, and the U.K.
In conclusion, the recent data from FilmLA indicates a decline in production activity in Los Angeles, particularly in reality TV and other TV productions. Despite the implementation of expanded state incentives, the effects have not yet been fully realized in the production data. However, there is optimism for the future as productions begin to secure permits for the upcoming quarter, supported by the increased investment in the film and TV industry in California.