The Indicator from Planet Money: Why Aren't Filmmakers Shooting in LA?

Release Date: July 15, 2025

Introduction

In the July 15, 2025, episode of The Indicator from Planet Money, hosts Darian Woods and Waylon Wong delve into the shifting landscape of the movie industry, exploring why Los Angeles, traditionally the heart of filmmaking in the United States, is seeing a decline in local productions. The episode titled "Why Aren't Filmmakers Shooting in LA?" examines the economic incentives driving filmmakers to seek locations outside of Hollywood and the broader implications for the city's film industry.

Filmmakers Leaving LA: The New Trend

The episode opens with a spotlight on filmmaker Aaron Moorhead, whose career trajectory illustrates the broader trend of filmmakers basing themselves in Los Angeles but choosing to shoot their projects elsewhere.

Waylon Wong introduces Moorhead:

"The first movie Aaron Moore had ever saw in theaters was Jurassic Park." (00:12)

Moorhead reflects on his early experiences and eventual move to LA, where he collaborates on independent horror and sci-fi films. However, despite being rooted in LA, Moorhead often shoots his movies in locations like southeast Italy and New Orleans to benefit from local incentives.

Darian Woods highlights two of Moorhead's projects:

"Take his 2014 film Spring, about a traveler who gets involved with a woman who turns out to be a mutant. That movie was shot in southeast Italy." (00:31)

"Or take Aaron's 2019 movie Synchronic. This one is about two paramedics investigating a new drug that that alters people's perception of time. It was shot in New Orleans." (00:51)

These choices are influenced not only by narrative needs but significantly by economic incentives offered by these locations.

The Rise of Film Tax Incentives

The conversation shifts to the proliferation of film tax incentives across various states and countries.

Patrick Button, an economist at Tulane University specializing in film tax incentives, provides historical context:

"In the early 2000s, state governments started vying for a piece of that Hollywood economic sparkle, and they did this by offering subsidies for film and TV production." (03:03)

Initially adopted by states like Louisiana and New Mexico in the 1990s, the number of states offering such incentives surged from fewer than ten to nearly forty between 2005 and 2010.

Waylon Wong explains how these incentives function:

"Production companies recoup a certain percentage of the money they spend locally. That could be for hiring workers, renting equipment, or paying for a hotel." (04:10)

Filmmakers benefit through rebate checks, tax credits, or by selling excess credits to other businesses. These rebates can cover 20% to 35% of local expenses, making a substantial difference in the feasibility of projects.

Economic Impact and Challenges

While the incentives appear beneficial for attracting productions, their effectiveness in stimulating local economies is debated.

Patrick Button observes:

"People used to talk about New Orleans being the Hollywood of the south, and, you know, we don't see as much of an impact on the local film industry as you might think would be the case." (05:02)

The influx of productions to other states and countries has led to a gradual siphoning of projects away from California. Internationally, countries like Canada, the UK, Hungary, Thailand, and New Zealand offer competitive incentives, with New Zealand providing up to 40% back on local spending.

Jason Blum, founder of Blumhouse and producer of the Purge series, shares his experience:

"It was a creep. The first one was like, we're gonna save two or three million dollars. So I was like, well, that one we should go out of state. But I didn't think that the next 10 would then be out of state." (05:34)

The dwindling number of local productions has tangible effects on Hollywood's infrastructure. Blum notes the underutilization of studio lots equipped with extensive resources:

"Emotionally, it's kind of sad, but it also seems so wasteful." (06:40)

California's Response: Expanding Incentives

In response to the declining local productions, California has sought to enhance its own incentive programs. Recent legislative changes include a significant budget increase and a boost in tax credits:

"Last month, Gavin Newsom signed a new budget that expands California's incentive program. It will now award $750 million a year, up from $330 million in previous years. This month, lawmakers also bumped up the tax credit from 20% to 35%." (08:29)

Economist Patrick Button acknowledges that California's deep-rooted agglomeration economy—where businesses cluster to benefit from shared resources and networks—gives it a unique advantage:

"California's incentive program did increase the probability of filming within the state budgets and hiring also went up for non-independent productions." (08:06)

However, Button raises concerns about the cost-effectiveness of these incentives:

"Is this a good use of taxpayer dollars relative to other uses of that money?" (08:29)

Future Prospects and Industry Sentiment

Despite enhanced incentives, challenges persist in retaining filmmakers within Los Angeles. Delays in the application process and the high cost of production in LA continue to push filmmakers to seek more immediate and generous incentives elsewhere.

Jason Blum emphasizes the need for more streamlined and substantial incentives:

"People are willing to make a little less money if they can live at home. What it's not worth is paying twice as much or a third as much more, which is what is the case right now." (07:52)

Filmmaker Aaron Moorhead expresses hope for the future:

"I want to see a lot of young filmmakers out there shooting their little micro budgets in indies and stuff like that and I want them not having to break their bank account just to just to show up. Yes, I want the big business to thrive, but I also want its youthful energy to come back in terms of like it, feeling like the place where you build your dream, you know?" (09:30)

Conclusion

The episode concludes by acknowledging the ongoing struggle of Los Angeles to maintain its status as the epicenter of the film industry amidst growing competition from other states and countries offering lucrative incentives. While California has taken steps to bolster its own programs, the effectiveness of these measures in reversing the trend remains to be seen. Filmmakers like Aaron Moorhead and industry leaders like Jason Blum highlight the importance of both economic support and the preservation of LA's unique creative environment to sustain its pivotal role in global filmmaking.

Looking Ahead

Tomorrow's episode will shift focus to China and its pursuit of Hollywood-style cinema ambitions, further exploring the global dynamics of the film industry.

Produced by Angel Carreras | Engineered by Jimmy Keeley | Fact-Checked by Tyler Jones | Edited by Kicking Cannon | The Indicator is a production of NPR.