Fires are fueling the search for air in Hollywood’s dream factories

Two days before the fire that destroyed Los Angeles, Hollywood was about to celebrate when Demi Moore, Zendaya and Timothée Chalamet walked the red carpet outside the Golden Globe Awards.

At the fun parties afterwards, there was a lively conversation about the success of It’s bad and other recent hits – and whether they could herald the end of Hollywood’s deep recession marked by studio budget cuts, writer and actor strikes and box office declines.

A week later, Los Angeles’ most popular industry was nervous and uncertain about its prospects for recovery. “I don’t think anyone knows what’s going to happen next,” said a manager at a major movie theater. This city has many problems.

Hollywood studiosincluding Sony, Disney and Warner Bros., have not yet sustained fire damage, but have stopped shooting many productions since fires blown by the wind it began to spread to densely populated areas.

At the Sony show in Culver City, new episodes of long-running games are on display Danger and Wheel of Fortune are suspended. NBCUniversal last week postponed the premieres of several television shows, including the Golden Globe-winning comedy Hacksbut he started filming again this week. Other studios say they are monitoring the fire and expect to be up and running soon.

Preparations for the Oscars, Hollywood’s biggest night, are also affected by the fire. The Academy of Motion Picture Arts and Sciences has extended the voting period for the Oscar nominations, which are due to be announced on March 2, twice, to give members more time to consider their choices. The school took the extra step of canceling a star-studded luncheon for candidates scheduled for next month.

Executives think these fire-related setbacks will be temporary, but there are long-term concerns that Hollywood is losing its power as a place to make movies and TV. Once a world leader in manufacturing, LA has watched as other US states, along with Canada and the UK, have used tax incentives to drive business to California.

The result has been a sharp decline in film and television production in Southern California over the past five years, said Philip Sokoloski, a spokesman for FilmLA, the L.A. production licensing group.

He said the number of L.A. brands has dropped by double digits in every category his company tracks over the past five years. “In some cases, it could be 50 percent,” he added.

Gavin Newsom, the governor of California, will try to revive the state’s film industry this year – as he also committed billions of dollars to help LA recover. fires. He plans to introduce a $750mn annual tax incentive plan for the industry in the next session of the state legislature, which is more than double the current level.

The aim is to attract the products that have migrated to Georgia, Louisiana, New York and other US states with more incentives – and try to leave the rebellion to Canada and the UK. If approved, the stimulus package will take effect in July.

At stake is an industry that generates about $45bn annually for California. At the end of the streaming bubble, L.A. employed 149,500 people in the film and sound recording industry, according to the Bureau of Labor Statistics. By 2023, when strikes brought production to a near standstill, the number dropped to 108,740.

After many strikes in the industry that were expected last year did not happen, and sometimes filming has dropped below the levels seen during the strike. Reality TV, often a reliable employer in times of decline, dried up. Publicized stories of Hollywood workers forced to sell their homes, become Uber drivers or leave the industry altogether. The phrase “Survive til 2025” has become a mantra for struggling actors, directors and writers.

“Now comes 2025 and the release of hellscape,” said Tom Nunan, an Oscar-winning producer and professor of film at UCLA. “I don’t think the fire is going to change the direction of the industry, but it’s an important factor for people (to consider leaving LA). People are sick and tired of waiting for studios to give them work.”

The fear is that LA’s 100-year-old ecosystem of writers, actors, producers, workers and agents may begin to crumble.

FilmLA’s Sokoloski said: “When you look at people who have worked hard here and are considering moving to pursue a career or pursue a new career entirely, it says something about the faith and hope that people have. it to them in this place.”

He added: “When people start thinking about the possibility of continuing their work in other places, that is certainly not good for us.

Hollywood is excited about Newsom’s offer, although some warn it won’t be magic. British Columbia raised its tax credits on January 1, with additional incentives for products over $200mn. The debt, combined with the weak Canadian dollar and its strong manufacturing base, make Canada a more attractive destination than California, LA-based Entertainment Partners said in a December report.

The group also noted tariffs proposed by president-elect Donald Trump of 25 percent in Canada could hurt US film and TV production.

For now, LA’s focus is on helping rescue and rebuilding efforts. Hollywood studios have donated millions of dollars to emergency response and rebuilding efforts, and actors including Jamie Lee Curtis have been at the forefront of fundraising for those displaced by the fire.

But rebuilding faith in Hollywood’s status as the home of the world’s “dream factories” will also take work. “I’ve been in the business since 1984, and I’ve never seen such a long period of disappointment,” Nunan said. “It started with Covid, then wars, then sanctions and now this.”

But the 62-year-old Hollywood veteran added: “I’m not ready to quit yet. I’m not ready to give up.”