The film industry has largely moved away from Hollywood, leading to job losses, and now it seems to be turning its back on Georgia and other southern states, just after leaving Los Angeles. The driving force? Money.
Georgia, often called the “Hollywood of the South,” gained prominence as a film production hub due to attractive tax incentives. Other states, like Louisiana, quickly followed suit, and for a time, this strategy paid off. However, Hollywood has recently found more affordable options elsewhere, particularly overseas.
Reports indicate that labor costs in the UK and other European countries are now lower than those in Georgia and much of the U.S., prompting many productions to relocate. The situation has become dire, with a noticeable decline in projects in Georgia.
“The tax perks that were meant to foster a flourishing film scene in the South now seem to push studios toward cheaper labor markets abroad,” the analysis suggests.
It’s notable that Disney and Marvel are among those criticized for leaving the U.S.
Georgia’s film production dropped nearly 50% in the aftermath of the pandemic, with project numbers plunging from 412 last year to just 245 by June this year.
Georgia isn’t the only place feeling the impact. A report states that overall production in the U.S. has dropped by 29% this year for projects with budgets over $40 million, in contrast to 2022 figures. Meanwhile, the UK has seen a 16% increase in its productions.
Interestingly, Disney’s decision to leave Georgia—and the U.S.—comes on the heels of more than a decade of staunch political positions regarding American values, particularly in states like Georgia and Florida. The company has seemed to champion progressive stances but is now seeking greener pastures in Europe, which raises questions about the sincerity of its stated values.
Disney and Marvel aren’t alone in this trend.
Earlier this year, the president suggested implementing 100% tariffs on films produced overseas, yet he hasn’t addressed the issue of U.S. studios moving out of the country.
While no real steps have been taken to enforce that tariff, discussions around the challenges facing Hollywood have begun, especially as budgets tighten and audience numbers dwindle. This has led to the appointment of Mel Gibson, John Voight, and Sylvester Stallone as “special ambassadors” to tackle these issues.
“I’m pleased to introduce that John Voight, Mel Gibson, and Sylvester Stallone will act as special ambassadors in what is becoming a really challenging time for Hollywood,” the president noted at the time. “They will serve as my special envoys to address the considerable exodus of business overseas in the past four years.
In any case, the entertainment industry, which once seemed impervious to economic shifts, has seen tens of thousands of jobs vanish, with little hope for recovery. The looming threat of artificial intelligence potentially eliminating even more positions over the next decade adds to this landscape of uncertainty.
It has been estimated that Hollywood could lose as many as 200,000 jobs due to the rise of generative AI, and that’s expected to be a long-term impact.
