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Hollywood Exodus: US Film Spending Plummets Abroad
5 Oct
Summary
- US film and TV production spending abroad has significantly increased.
- Major studios spent 72% in the US in 1999, now spend over half outside.
- A federal tax incentive aims to boost domestic production by 20-30%.
A recent study commissioned by major entertainment unions reveals a significant shift in Hollywood's production spending patterns. Between 1999 and 2024, major U.S. studios drastically reduced their domestic production budgets. For films, U.S. spending dropped from 74% to 42%, and cast and crew working domestically fell from 72% to 43%.
The trend is also evident in television, with U.S. episode spending declining from 94% to 64% and domestic cast and crew participation dropping from 86% to 58%. This exodus of production is occurring as the industry lobbies Congress for a federal tax incentive.
Proposed legislation aims to offer a 20% base rate on U.S. cast and crew spending, potentially increasing to 30% with certain uplifts. Unions, studios, and producers advocate for this incentive to enhance the U.S.'s global competitiveness as a production center.
