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20 March 2025

Hollywood's Competition Grows As Production Shifts West And Beyond

States and countries innovate with tax incentives to attract filmmakers in an evolving industry landscape.

Even as California Gov. Gavin Newsom tries to halt a production exodus from Los Angeles with a pledge to double the film and TV tax incentive from $330 million to $750 million a year, producers are finding abundant new and cheaper soundstage options in far-flung locations. That’s evident with the number of film studios, lots, and facilities under construction throughout North America and in Europe, many hoping to capitalize on Hollywood projects that are on the move.

It's not just established rivals like Georgia, New Jersey, and New York that are gaining popularity—California has new competition from places like Louisville, Kentucky, which is not typically known as a hotbed for film production. Yet in Louisville, Gus Van Sant’s upcoming crime feature Dead Man’s Wire and a drama titled The Revisionist, starring Dustin Hoffman, have successfully nabbed incentives to shoot in the locale. Additionally, plans are underway for a $75 million redevelopment of the historic Louisville Gardens arena into a film studio complex, which is expected to begin reconstruction later this year. The project is backed by a refundable 30 to 35 percent Kentucky film tax credit, with a cap of $10 million per project. Soozie Eastman, Louisville's film commissioner, notes, “We have had a continuous uptick in interest in production in our region because of this generous incentive.”

Another state fostering filmmaking is North Carolina, where director and producer Robert Rippberger has rebranded his Ascent Studios in Spring Hope as White Lightning Studios. He aims to leverage the state's 25 percent tax rebate to lure productions. Rippberger expressed optimism, stating, “We’re ready for the big streamers to come and shoot at the studio when our stages are finished.” He further emphasized the studio's versatility by adding that, should situations like COVID or strikes arise, they are prepared to host other events like concerts or weddings.

Amid shifting logistics, the film and TV studios continue to seek out lower-cost options, both domestically and internationally. Organizations like Kirk Englebright's Dark Horse Stages have already opened new soundstages in Wilmington, with YouTube star Jimmy Donaldson—better known as MrBeast—recently filming on the new lots. Englebright noted, “He’s paving the way of where the industry is headed,” noting how studios are adapting to a global production model.

Texas joins this competitive race, as South Side Studios in Dallas reopened in January 2025, equipped with three newly expanded soundstages—ranging from 10,000 to 20,000 square feet. Tony Armer, from Talon Entertainment, shared his enthusiasm for the state's production future: “I feel very good about where production is headed for Texas.” However, that optimism hinges on the success of pending state legislation that could enhance local production incentives.

Moving beyond U.S. borders, international hotspots like the U.K. are fast becoming attractive due to favorable tax incentives. In February 2025, Eastbrook Studios—operated by the U.S.-based Hackman Capital Partners—opened as London’s largest film and TV studio complex. Coinciding with this launch, the U.K. government introduced a 40 percent corporate tax rate relief for film and TV studio facilities and a new indie film incentive of equal value that extends through 2034.

In Toronto, plans are advancing for the $250 million Basin Media Hub being developed by Hackman Capital and the MBS Group. Julie Dabrusin, a member of Parliament for Toronto-Danforth, mentioned, “We’ll probably have a big celebration when we put that shovel in the ground.” Meanwhile, smaller cities like Oakville, Ontario, are repurposing facilities such as the former Centennial Pool, now a dedicated water tank for shooting aquatic scenes for productions like Prime Video’s Reacher. Garrett Rodman from Oakville remarked, “We’re positioning Oakville as a great alternative for productions.”

Back in L.A., executives are viewing this moment as critical for the state's production future. Victor Coleman, CEO of Hudson Pacific, emphasized that significant changes are on the horizon. “Some of the pressure from austerity measures may be alleviated as a growing number of streamers... reach profitability,” he noted during an earnings call in February. Coleman has also had discussions with Hollywood representatives encouraging local production enhancements.

This ongoing shift indicates a changing landscape where studios are not just evaluating locations based on availability but increasingly on financial efficiency. “Studios have always based production decisions on where to get the best value... International locations have gotten more competitive over time,” stated Tobias Queisser, CEO of Cinelytic. As profitability becomes the driving factor for studios and investors, maintaining a portfolio of diverse locations is likely to be more important than ever in an industry adapting to fresh challenges.

The competition among states and countries for film production will likely lead to a more dynamic and diversified landscape in the years to come as they each carve out their niches in this evolving reality. While traditional hubs like Los Angeles face challenges, the rise of new production centers illustrates that opportunities in film and TV are broadening beyond historic borders. This increased versatility may ultimately reshape where and how films and shows are made as governors and local incentive programs respond to these pressing trends.