The film and TV industry is experiencing a shift in spending and production, with New York and New Jersey emerging as key players in the race to attract Hollywood's attention. California, once the dominant force, is now facing competition from its eastern neighbors, as well as other states that have traditionally been major production hubs.
New York has seen a significant resurgence, with a 19% increase in filming count and a 57% surge in total production spend to nearly $1.06 billion in the second quarter of this year. This is largely attributed to the state's removal of the cap on above-the-line qualified spending and other incentive programs. The state's soundstage space has also grown by 43% since 2020, and motion picture employment is at 86% of pre-pandemic levels.
New Jersey, on the other hand, has seen a decline in total filming activity but a major increase in production spend, attributed to a dip in feature film starts and a rise in episodic TV filming. The state has designated Netflix, Paramount, and Lionsgate as studio partners, offering long-term incentives to produce titles there. Netflix is building its East coast soundstage base in New Jersey, while Paramount signed a 10-year lease for a new studio in Bayonne.
However, not all states are experiencing growth. Georgia, once a base for Marvel projects, has seen a 40% decline in filming activity and a 43% decline in production spend in the quarter. The state has slipped below New Jersey in terms of total spend, and the declines are across both episodic and live-action features.
The success of New York and New Jersey can be attributed to their incentive programs, which offer meaningful credits, easy monetization, fast payment, and consistency from year to year. These programs reduce risk for producers, making them more competitive. However, as ProdPro chief Alex LoVerde notes, incentives are only part of the equation. Experienced crews, infrastructure, great locations, and a place where talent wants to work are also crucial factors.
In conclusion, the film and TV industry is experiencing a shift in spending and production, with New York and New Jersey emerging as key players in the race to attract Hollywood's attention. California, once the dominant force, is now facing competition from its eastern neighbors, as well as other states that have traditionally been major production hubs.
