On July 1, FilmL.A. implemented rate hikes on a range of fees required to obtain permits for filming in the region. These increases, which came two months into the writers strike, were partly linked to inflation. However, there were also markups of approximately 8 to 17 percent for fees such as rider, photo, and notification fees. In addition, the agency introduced new administrative fees for complex filming requests, including charges for drone, helicopter, and special effects use, as well as for lane and street closures and simulated gunfire.
One of the notable changes in service pricing was the introduction of additional limitations on the number of locations covered by a permit. Previously, a permit costing $863 allowed for up to 10 locations over a 14-day period. However, under the new guidelines, a permit costing $895 only covers up to five locations over a seven-day period. For large-scale projects, this change could result in a tripling of permit costs depending on the shoot’s duration and the number of locations.
While these fee hikes may not be a deal-breaker on their own, they add to a growing list of reasons why productions may choose to film in alternative locations. A location manager who has worked on major productions mentioned that although the numbers may not be massive, they contribute to the perception that filming in Los Angeles is becoming less appealing. The location manager described Los Angeles as already “film-unfriendly.”
FilmL.A. President Paul Audley defended the fee hikes, stating that they were aimed at addressing the needs of lower-impact filmmakers. He explained that the agency had abandoned the previous one-size-fits-all pricing model, which required productions of all sizes and complexities to pay the same rates. The agency’s research found that smaller and less complex projects were effectively subsidizing larger ones. Audley also pointed out that the reduction in the number of locations covered by a single permit aligns with the majority of productions’ needs. According to FilmL.A., 93 percent of permits issued are for five or fewer locations, and 82 percent of permits last for fewer than seven days.
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These price adjustments come as the procurement of tax credits has become increasingly crucial for greenlighting projects. Major production hubs like Los Angeles and New York are losing favor as filming locations because productions are choosing jurisdictions with more generous incentive programs and lower labor costs. A top production executive from a major company stated that unless there is a specific reason to film in Los Angeles, they no longer choose the city. The executive highlighted the availability of significant financial benefits in certain venues, such as getting 25 percent more money onscreen for the same budget or making a project for 20 to 25 percent less.
FilmL.A.’s analysis of scripted production shows that while Los Angeles remains the top filming location in the country for scripted content, its growth in total shooting levels has stagnated from 2021 to 2022, despite an overall increase in industry output. Out of the 447 scripted TV series released in 2022, approximately 30 percent (136 series) were filmed in Los Angeles. This figure is slightly lower than the 32 percent (129 series out of 402) in 2021, but both years experienced a significant decline compared to pre-pandemic levels. In 2019, approximately 43 percent of all scripted shows were shot in Los Angeles.
On the other hand, other regions have seen considerable growth in scripted TV productions. According to the data, Georgia and the U.K. experienced a 42 percent and 65 percent increase, respectively, in hosting scripted TV productions. Meanwhile, Los Angeles and New York, although still top hubs for feature films, saw an 18 percent and 29 percent decrease in titles filming in those areas, while the U.K. saw a 21 percent increase.
The location manager described Los Angeles’ fee hikes as contributing to further disincentivizing production in the region, stating, “It’s death by a thousand cuts.” This suggests that the combination of various factors, including fee increases, tax credits, and lower costs, are pushing productions away from Los Angeles and towards more hospitable filming locations.
