Hollywood Faces Industry Exodus as Variety’s Cover Story Highlights Crisis

The entertainment industry and Los Angeles have maintained a deep-rooted connection for over a century, intertwining their identities so closely that they are often seen as one and the same. The landscape of stage lots, sound studios, and the extensive framework of film and television production has shaped both the economy and cultural essence of the region. For a long time, the notion that Hollywood could simply abandon its roots seemed unimaginable.

However, recent statistics tell a different tale. Los Angeles now represents only 27% of the nation’s film and TV employment, a significant drop from 35% in 2022, as productions have shifted to competing cities like Atlanta, London, and Canada, drawn by more attractive incentive programs. The number of scripted series has also plummeted from 633 in 2022 to 481 in 2023, further damaging a local workforce already impacted by consecutive strikes and budget cuts from major studios.

Variety highlighted this crisis on its cover this week, featuring a piece by Gene Maddaus titled “Hollywood’s Mass Exodus: Why Film and TV Production Is Fleeing L.A. and What Can Be Done About It.” The article carries the striking tagline “Hollywood, Ending? Fewer jobs, less production and an economic crisis have brought the entertainment industry to the brink.” It focuses on the alarming exodus of film and television work from the city that pioneered the industry.

The Fox reboot of ‘Baywatch’ serves as a key example in the report. Governor Gavin Newsom publicly praised the show’s return to Los Angeles beaches, with the state investing $21 million to facilitate its comeback. However, the production faced significant challenges when county officials and the California Coastal Commission imposed restrictions on essential production activities along the coast.

‘Baywatch’ co-creator Greg Bonann found himself unable to park trucks overnight, ignite fires, or operate equipment vehicles on the sand. Bonann, speaking to Variety, expressed his frustration candidly: “We’re a lifeguard show. What do you mean we can’t drive a truck on the beach?” It ultimately took intervention from high-ranking local officials to prevent the production from becoming a symbol of California’s struggle to retain its own industry.

There are early indications that the situation may be improving. California lawmakers have approved a significant expansion of the state’s production tax incentive program, and shoot days in Los Angeles for the first quarter of 2026 reached 5,121, marking a 10.7% increase compared to the previous quarter. L.A. Mayor Karen Bass, in a statement to The Hollywood Reporter, proclaimed that “Hollywood is finally turning a corner with more productions and more jobs.”

The Variety cover story presents this cautious optimism against a much tougher backdrop. Other regions continue to offer incentives that cover A-list talent costs and enable productions to save significantly on labor, leaving Los Angeles competing on an uneven playing field. Whether the city can truly reclaim its former glory or if recent improvements are merely a fleeting moment in a longer-term decline remains a pressing question for the industry. Given the challenges revealed by the ‘Baywatch’ production struggle, can California effectively address the issues driving Hollywood out of its own backyard?