Will Hollywood really become the next Detroit?

Hollywood faces a stark crossroads as production days in Los Angeles plunge, sparking fears it could mirror Detroit’s fate as an industry hollowed out by flight. At a recent town hall packed with insiders from postproduction to scoring, voices rang out warning this downturn risks turning California’s once-thriving entertainment hub into a shell of its former self. With proposed tax incentives stuck in legislative limbo, advocates argue these measures aren’t corporate handouts but crucial lifelines—forcing a critical rethink of Hollywood’s survival in a fiercely competitive global market.

Post production crisis looms large

Hollywood’s production days have taken a nosedive, with new reports showing a sharp decline in shoot schedules across Los Angeles. Industry insiders are sounding alarms, warning that without a serious boost to incentives—especially in postproduction and music scoring—the city’s entertainment sector risks truckin’ off like Detroit’s auto industry, leaving behind shuttered studios and lost livelihoods.

Legislators like Senator Ben Allen and Assemblyman Rick Zbur argue tax incentives are no giveaways but lifelines for middle-class crews and local businesses. Their message cuts through political noise: if California fails to compete, Hollywood productions will migrate elsewhere, leaving a hollowed-out ecosystem. It’s a battle for survival, not a handout, with precedent from competing states and nations stepping in with perks that reel in work.

This gathering at Evergreen Studios drew a spectrum of industry players united in urgency—from record moguls to film commissioners. The consensus? Ignoring postproduction’s exodus threatens Hollywood’s historic mojo. Without swift legislative action, California could soon watch its crown jewel industry fade, much as Detroit did when the cars stopped rolling and jobs evaporated.

Hollywood on the brink

The stark reality: studios chase incentives like moths to a flame, opting for cheaper pastures in New York, Georgia, or even Canada. This isn’t new chatter; the fear of losing Hollywood’s heart isn’t fresh, yet it’s intensifying. Previous attempts to boost local production tax credits barely scratched the surface—now the clock ticks louder.

Insiders stress this isn’t about fat-cat studios; it’s about thousands of middle-class workers—editors, sound mixers, composers—losing steady gigs. California’s current incentive package lags behind competitors, putting Hollywood at a disadvantage. A 2023 USC study underscores this, showing a sharp decline in local postproduction jobs, risking the city’s creative ecosystem.

Policy and economic impact

Lawmakers like Senator Ben Allen and Assemblyman Rick Zbur emphasize these incentives aren’t giveaways—they’re investments in communities and craftspeople. Without action, Hollywood risks becoming a ghost of its glamorous past, repeating Detroit’s industrial decline, where absence of support shattered livelihoods overnight. It’s a critical moment for California’s cultural core.

Hollywood’s tipping point

The scare of Hollywood turning into another Detroit isn’t idle chatter. A 2024 economic report from the California Film Commission highlights a 25% drop in local shoot days just this year, largely driven by incentive shifts. Competitors like Georgia and New York now offer better deals, drawing the kind of steady work once core to Hollywood’s heartbeat.

Inside Hollywood many see the stakes as existential. Veteran producer Anita Delgado points out, “every project that moves out means hundreds of skilled workers displaced—editors, composers, VFX artists. This isn’t just a studio issue; it’s a community hemorrhage.” As incentives stall in Sacramento, the affluent studios will book anywhere—‘creative capital’ melts away with the tax credits.

Yet, the fight to save Hollywood is more than nostalgia. It’s about a sustainable future with quality jobs and booming ancillary businesses. The ‘Stay in LA’ campaign pushes a pragmatic narrative: incentives aren’t freebies; they’re investments preserving California’s cultural and economic mosaic. Without them, the glamor dims, leaving a city adrift and an industry hollowed.

Hold onto the dream

Hollywood’s story isn’t sealed yet. The proposed bill to expand tax incentives for postproduction and scoring could reshape the city’s fortunes, keeping creative jobs within its borders. It’s a contest against time and geography, with rivals like Georgia and New York already sweetening deals that pull shoots and jobs away from L.A.

The middle-class workforce in Hollywood is at stake here—editors, composers, and technicians who breathe life into every frame and soundtrack. Advocates remind legislators and voters alike: this isn’t about studio CEOs pocketing cash. It’s about preserving thousands of livelihoods and the cultural heartbeat that defines Hollywood’s global brand.

If Hollywood wakes up, embraces these incentives, and clamps down on the losing momentum, it can keep its edge. But the window is narrow. Otherwise, Los Angeles risks mutating from the glitzy capital of dreams into a cautionary tale much like Detroit—once great, now haunted by what it lost.

Hold or fold?

Hollywood’s fate hinges on the next legislative moves—the proposed tax incentives for postproduction and scoring aren’t just perks but a necessary insurance policy. Without them, the city’s middle-class creative workforce could face a grim exodus, echoing Detroit’s downfall. Yet, optimism remains: savvy lawmakers and industry insiders rally behind a vision to keep Hollywood humming. The question is whether California acts fast enough to stop its crown jewel from becoming another cautionary relic in the annals of American industry.