The 2026 summer cinema season brought the film industry a return to cultural appeal and financial success with blockbusters such as "The Odyssey," "Spider-Man: Brand New Day," and "Obsession." Adjusted for inflation, the industry recorded US$4.76 billion in revenue from ticket sales, representing a 26 percent increase compared to summer 2025. Robert Marich, film industry analyst and author of "Marketing to Moviegoers," commented that "'The Odyssey' is an example of how the film equation works out. It's not a new peak, but simply functions as it should."
However, these box office successes do not reflect the reality of production locations. The structural problems affecting Los Angeles as a film location persist. The city risks losing its locational advantage over national and global competition, as over 100 incentive programmes for film productions are available worldwide. In 2025, 45 percent of all US films and fictional television shows were shot outside the United States. This leads to low utilisation of studios in Los Angeles, as productions are relocated nationwide and internationally, causing the local market for film, television and associated jobs to stagnate.
An increase in shooting days for digital productions was reported by FilmLA, L.A.'s permitting agency, which rose by 47 percent in the second quarter as studios in Burbank and elsewhere increasingly engage online creatives. However, this growth is not sufficient to offset the other losses. Many local players continue to call for incentives as a lifeline for the film and television industry. Although California extended its Film & Television Tax Credit Programme to US$750 million annually until June 2030 – more than doubling the previous US$330 million – further, increased incentive programmes have been proposed. Even President Donald Trump suggested a nationwide "sweetener" in August, prompting Congress to draft a bill for an additional federal subsidy of 20 percent.
Michael Thom, Professor of Public Policy at the Price School of Public Policy at the University of Southern California, criticises the film industry and incentive proponents for repeating the same strategy and expecting different results. Thom noted that employment in the industry does not correlate with tax subsidies. He questioned: "If jobs continue to leave the state, why not blame something else, like long-term changes in media consumption – and the SAG-AFTRA contract ratified at the end of 2023?" Thom referred to the writers' and actors' strikes three years ago, adding: "Shortly thereafter, nationwide employment declined sharply. I don't consider that a coincidence. If the industry shrinks, throwing more money at it is like handing out buckets to Titanic passengers."
Data from FilmLA shows that incentives account for a significant portion of the production industry in Los Angeles. The local non-profit organisation offers incentives for feature film productions, TV drama productions, and more recently, TV comedy productions. Recent data confirms that incentives were responsible for 33 percent, 38 percent, and 37 percent of all shooting days respectively. Philip Sokoloski, FilmLA Communications Vice President, explained that these are "larger numbers than we've seen in the recent past, which we attribute almost exclusively to the availability of additional funds in the programme."
Nevertheless, production in all three categories declined compared to the same period last year, even with increased utilisation of state incentives. Victor Coleman, Chairman and CEO of Hudson Pacific Properties, stated in an earnings call that "state incentives have frankly been disappointing in that they haven't really accelerated filming." This continues to burden studio owners like Hudson Pacific. The pre-pandemic "gold rush," where buyers and developers factored in high costs and prices assuming a sustained industry boom, is over. Hackman Capital Partners lost control of the 1.2 million square foot Radford Studio Center at the beginning of the year. Television City, another well-known production complex acquired by Hackman early in the decade, has also been for sale since July. Hudson Pacific Properties, the largest owner of studio properties in the USA, reported a US$105 million loss last quarter, with Coleman noting that "the production landscape remains mixed." He also had to answer questions regarding Netflix, the company's largest film tenant in Hollywood, and the implications if the leading streamer occupies Hackman's former Radford Studio site from 2031.
