What are the main reasons behind the current employment crisis in Hollywood? How do proposed tax incentives aim to support film and TV productions in California? Why are some policymakers and industry professionals concerned about the legislation proposed by Gov. Gavin Newsom? In what ways does the entertainment industry impact the livelihoods of working-class individuals in Southern California? What are the challenges described by speakers regarding the legislative process for the proposed tax credit?
As Hollywood’s employment crisis deepens with no relief in sight, more than one thousand rallied on Sunday in support of amplified incentives intended to convince more film and TV productions to stay in Southern California.
At the “Stay in L.A.” event at a studio services complex in Sun Valley, politicians shared stories of constituents in dire circumstances, industry professionals detailed parenting struggles stemming from working in other jurisdictions, and a labor leader described receiving calls every day from desperate union members as production work has dried up in Southern California in the last few years.
More than 25 speakers, from policymakers to union officers to workaday performers, painted the picture of an unlevel tax incentives playing field that is jeopardizing the livelihoods of working-class and middle-class creatives and crew members who may not front a film or show but are crucial to their creation.
The goal: to emphasize a pressing need for California legislators to greenlight Gov. Gavin Newsom’s budget proposal, which would more than double the state’s ceiling for its film and television production incentives program, from $330 million to $750 million a year. Also on the table: legislation to increase the film and television credit to 35 percent and expand eligibility to include animation, large-scale competition shows, and shorter television series.
“This is Hollywood, California. We have to stay competitive to stay alive, to keep our industry alive, to keep tourism alive, to keep the entire ecosystem alive,” SAG-AFTRA secretary-treasurer Joely Fisher said in an animated speech that echoed through Sir Reel Studios, which hosted the event. “Make Hollywood Hollywood again!”
The Stay in L.A. movement, which rose from the ashes of the Pacific Palisades and Altadena fires in January with the stated purpose of advocating for an influx of film and television work as a means of recovery, helped organize Sunday’s event. The movement’s leaders have advocated not only for legislation but also for commitments from major studios and streamers to keep more of their sets in L.A.; so far, no major company has publicly responded to the call.
Speakers emphasized that the entertainment industry isn’t just comprised of stars at the top of the call sheet but also grips, costumers, and drivers, among other crew workers. “These are the very people who have built California’s reputation as the entertainment capital of the world,” said DeJon Ellis Jr., the business manager for the IATSE Local that bargains on behalf of grips, craft services, and warehouse workers. “The truth is, we are not just creating entertainment, we are creating jobs, we are sustaining families, we are shaping the identity of California itself.”
And rally headliners argued that productions sustain many small businesses like History for Hire, a prop house in North Hollywood whose president, Pam Elyea, exhorted attendees to stop by because business wasn’t booming: “We’re lonely,” she said. In her speech, Lindsay Dougherty, the leader of the Hollywood Teamsters, compared Hollywood to her hometown of Detroit before the auto manufacturers went into crisis.
The display of persistence and, at some points, frustration, all played out in Sun Valley against a backdrop of a post-Peak TV era when studios are cutting costs and Hollywood’s output has shrunk.
Though many industry workers survived momentary shutdowns during the COVID-19 pandemic and the duel strikes in 2023, work never roared back. According to the latest report from FilmLA, on-location production in 2024 was the lowest it’s ever been recorded by the film office beyond 2020, when projects were shut down due to the COVID-19 pandemic. Soundstage occupancy was also down in 2024, to 63 percent, compared with 93.5 percent between 2016 to 2022.
The California legislators’ proposals may provide some form of remedy. Still, the proposed legislation isn’t a done deal. Two speakers at Sunday’s event suggested that politicians from Northern California, where the entertainment industry does not have the same presence, may be a holdup. And the Motion Picture Association, the major lobbying group for studios and streamers, and entertainment unions are also still negotiating the specifics of potential legislation.
“I think educating the Northern California electeds is always a hurdle just because they don’t see how much this industry impacts the state of California,” Dougherty said in an interview with THR at the event. “But I think that [with] the two bills, we’re going to have overwhelming support from the Assembly as well as the Senate. We’ve just got to make sure that we’re doing our due diligence to fully get the word out.”
Policymakers who seemed a little less optimistic about the ultimate fate of the bills and politicians’ general awareness of Hollywood’s plight called on the audience to inundate their representatives with messages. “I’ve got to tell you guys, you’ve got to do a little more to push people like myself,” Los Angeles City Councilmember Imelda Padilla said, pointing out that only four of L.A.’s 15 councilmembers were present for the event. “Pick up those phones, get those numbers and call every single councilmember to put this at the top of the list.”
Added Jessica Caloza, who co-authored the two tax incentive bills at play, “What I see in this room is energy that we feel we need to bring to Sacramento.” She added, “There’s a lot of people in this state who do not believe we need the film tax credit. And we need you all to turn out.”
The remark came after she led the crowd in a chant familiar to many in the entertainment labor space, where it is a staple of union rallies: “When we fight / we win.”
Hollywood Workers Fight to Improve Incentives
In the sprawling landscape of Hollywood, a clash is brewing—not between studios and talent, but rather within the industry itself. As the entertainment world adapts to technological advances and shifting consumer preferences, workers are stepping to the forefront, demanding better incentives that reflect their contributions to an ever-evolving industry. Regardless of whether they are actors, crew members, writers, or support staff, many Hollywood workers are voicing their frustrations over outdated compensation structures and inadequate benefits, igniting a movement for reform.
In recent years, the rapid growth of streaming services has transformed the way content is produced and consumed, generating unprecedented revenues for studios and platforms. Streaming giants like Netflix, Amazon, and Disney+ have reshaped the landscape, garnering enormous subscriber bases and returning profits that sometimes surpass those of traditional box office releases. Yet, while production budgets have ballooned and viewership reaches new heights, workers are increasingly questioning why their compensation and working conditions haven’t kept pace with this economic boom.
One of the central grievances among Hollywood workers is the disparity in pay and benefits. Many argue that despite the rise in studio revenues, wages for crew members, especially in entry-level positions, have remained stagnant. Long hours, short notice for scheduling, and insufficient healthcare benefits are issues commonly cited by workers across various trades. This reality stands in stark contrast to the financial success enjoyed by studio executives and a select few stars, prompting a call for equitable compensation that reflects the hard work and dedication of all industry participants.
In addition to fair wages, Hollywood workers are advocating for better job security. The gig economy has flourished within the entertainment sector, often leaving employees with precarious job status and inconsistent income. Many creatives are hired as freelancers, which comes with the flexibility to work on diverse projects but also carries the burden of lacking health insurance, retirement plans, and other essential benefits. Labor advocates contend that studios should better support their workforce by offering more stable employment arrangements and comprehensive benefit packages, enabling them to focus on their craft rather than stressing about their next paycheck.
The COVID-19 pandemic further exacerbated these concerns, as the film and television productions came to a standstill, leaving many workers in the lurch. As productions began to resume under strict health protocols, there emerged heightened awareness around the importance of safe working conditions, mental health support, and access to resources. Unions and associations representing various industry workers are increasingly vocal about these issues, emphasizing the need for studios to adopt policies that prioritize worker welfare.
The movement for better incentives has gained traction, exemplified by the solidarity demonstrated during labor actions in recent months. Notably, the Writers Guild of America (WGA) and SAG-AFTRA (the Screen Actors Guild-American Federation of Television and Radio Artists) engaged in collective bargaining, pushing for improved compensation, healthcare benefits, and protections against exploitation. Workers across the board have shown unprecedented unity in their efforts to secure a better deal, encouraging a dialogue that prioritizes fair treatment in an industry known for its cutthroat nature.
The rise of social media and online platforms has played a significant role in amplifying workers’ voices. Hollywood workers are utilizing these tools to share their experiences, highlight injustices, and build a sense of community among creatives. By documenting their challenges and advocating for change, they are fostering a culture of transparency that holds studios accountable for their practices. Hashtags like #PayUsFairly and #HollywoodUnions can often be seen trending, offering a glimpse into the collective push for reform while empowering workers to take an active stance.
Industry leaders and studio executives are slowly beginning to recognize the need for an overhaul in their approach to worker incentives. Some have already started implementing changes, such as enhanced training programs, mental health resources, and improved scheduling practices that prioritize work-life balance. However, critics argue that these measures are mere band-aids rather than comprehensive solutions.
Looking ahead, the battle for better incentives in Hollywood is likely to intensify as workers continue to mobilize. As the industry faces further disruptions from emerging technologies like artificial intelligence, production practices must evolve to ensure job security and fair compensation. Workers are not just demanding changes for themselves; they are advocating for a renewed understanding of the value of collaboration. The essence of storytelling lies in the contributions of everyone involved, and that collective effort deserves recognition, respect, and reward.
In conclusion, the movement for improved incentives among Hollywood workers reflects a broader shift in the industry—one that seeks to address longstanding inequities. As the landscape evolves, the voices of workers are becoming increasingly hard to ignore. It’s time for studios and executives to respond, acknowledging their invaluable contributions and taking concrete steps toward creating a more equitable environment that benefits all who work in the entertainment industry. The fight for better incentives is not just a fight for better pay; it is a fight for dignity, respect, and the recognition of all who contribute to the magic of Hollywood.
Workers in Hollywood have increasingly voiced their concerns over incentive structures in the industry, particularly regarding fair pay, job security, and working conditions. As the demand for content continues to surge, many crew members, actors, and writers have come together to advocate for better terms that reflect the increased workload and evolving landscape of entertainment.
Discussions around these issues have prompted actions such as strikes and negotiations with studios, highlighting the pressing need for enhancing worker protections. Union representatives and industry advocates are pushing for more equitable distribution of profits and better benefits, emphasizing the importance of mental health resources and work-life balance amid the demanding schedules typical of film and television production.
Moreover, the rise of streaming services has altered traditional revenue models, leading to renewed discussions about fair compensation in an evolving distribution landscape. The push for improved incentives encompasses not only financial remuneration but also recognition of the creative contributions made by workers at all levels.
The ongoing dialogue signifies a pivotal moment in Hollywood, as workers seek to reclaim a sense of agency and ensure that their contributions are valued in an industry that thrives on collaboration and creativity.