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Hollywood has long been associated with American filmmaking, but a growing share of major movie and television production is taking place outside the United States. Studios are increasingly weighing the cost of filming at home against the financial incentives, production facilities and skilled crews available in other countries. The shift is raising concerns about the future of American production jobs and the communities that depend on the entertainment industry.
A report released on October 5, 2026, by seven Hollywood labor organizations and prepared by EY Quantitative Economics and Statistics found that the U.S. share of major-studio film production spending fell from 74% in 1999 to 42% in 2024. The American share of spending on television episodes also dropped, declining from 94% to 64% over the same period. These figures suggest that overseas production has become a much larger part of the business, even as American studios continue to finance many of the projects.
The consequences extend beyond actors and directors whose names appear on screen. Film and television productions employ camera operators, electricians, set builders, costume designers, drivers, makeup artists, caterers and many other workers whose jobs depend on projects being filmed nearby. When productions move elsewhere, local workers can lose paid days, face longer gaps between contracts or be forced to seek work in another industry.
Why Studios Are Choosing Other Countries and Production Hubs
Tax incentives are a major factor in the competition for film and television projects. Countries such as the United Kingdom and Canada, along with competing American states, offer financial programs designed to attract productions and encourage studios to spend money locally. When budgets are under pressure, these incentives can influence where a production is filmed, even when its story takes place in Los Angeles or another American city.
The challenge is not limited to overseas competition. States such as Georgia, New York and New Jersey have also developed incentives and production facilities that can draw projects away from California. Studios are making decisions in an industry facing tighter spending, fewer major projects in some categories and pressure to control costs, making production location an increasingly important business consideration.
Los Angeles continues to face a difficult recovery despite efforts to bring filming back. FilmLA reported that the region recorded 4,711 on-location shoot days in the second quarter of 2026, down 12.7% from the same period in 2025 and about 36% below its five-year average. Reality television, feature films and commercials all contributed to the decline, although some productions supported by California tax incentives provided a measure of relief.
The Human Cost of Fewer Productions in the United States
For workers who rely on production schedules, fewer projects can mean months of uncertainty rather than a steady stream of assignments. Many crew members are hired for individual productions, so a project filmed abroad may represent weeks or months of work that never becomes available in their local market. Smaller businesses that supply equipment, transport, construction materials, food and other services can also lose revenue when crews and spending move elsewhere.
The labor report highlights the scale of that change. Between 1999 and 2024, the share of cast and crew working on major-studio films filmed partially or primarily in the United States fell from 72% to 43%, while the corresponding share for television declined from 86% to 58%. These figures measure the location of work tied to major-studio productions, not every job in the entertainment industry, but they show why unions are concerned about the long-term effects on American workers.
The uncertainty is also linked to changes within Hollywood itself. Studios and streaming services have been reassessing spending after years of rapid expansion, while consolidation and fewer production greenlights can reduce the total amount of work available, even in places that offer competitive incentives. That means bringing a project back to the United States may help local workers, but it cannot guarantee a sustained recovery if the overall number of films and television episodes being made remains limited.
Can New Incentives Bring Hollywood Jobs Back Home?
Hollywood labor organizations are calling for a federal film and television tax credit to help the United States compete with overseas production incentives. Unlike state programs, a federal incentive could provide support across the country and potentially make domestic production more attractive when studios compare filming costs in different locations. Supporters argue that keeping more work in the United States would benefit not only the studios but also the workers and local businesses that support each production.
California has already expanded its film and television tax credit program, increasing the annual funding cap from $330 million to $750 million in 2025 and broadening eligibility for certain types of projects. The state has approved productions under the expanded program, but the latest Los Angeles filming figures show that incentives have not yet reversed the wider decline in on-location shooting. The results suggest that tax credits can help attract selected projects, although they must compete with broader cost pressures and other production destinations.
For American production workers, the future will depend on whether these efforts generate enough consistent work to support careers and businesses over the long term. More competitive incentives could encourage studios to film at home, but a lasting recovery may also require renewed investment in content, predictable production schedules and policies that make domestic filming financially practical. Until those changes translate into more projects, Hollywood’s shift overseas is likely to remain a source of concern for the people whose livelihoods depend on bringing movies and television shows to life.