New York Closing in on California for Top Entertainment Hub
New York is making significant strides in overtaking California as the leading state for television and film production. Historically, the Empire State has enjoyed a robust presence in the entertainment world, featuring iconic sites like Rockefeller Center and famed filmmakers such as Woody Allen and Martin Scorsese. However, California has long held onto its title as the “Entertainment Capital of the World.” Recent trends, though, suggest that New York might soon claim that title, according to The Hollywood Reporter.
California maintained its top position with a production spend of $1.76 billion, but New York is rapidly attracting big projects, experiencing an impressive 87 percent increase in production spending this quarter, reaching $1.61 billion. In contrast, California saw only a 17 percent growth, as noted in the latest report from industry analyst ProdPro.
New York’s recent transformation includes substantial investments in soundstage infrastructure, crew unions, and access to attractive locations along the East Coast, such as the Tri-State area. Notably, the upcoming project Miami Vice: 85 has conducted a substantial portion of its filming in New York and Wayne, New Jersey.
According to The Hollywood Reporter, New York possesses certain advantages, including a steady stream of scripted television series that often film across multiple seasons in the same soundstages. The availability of soundstage space has increased by 43 percent since 2020, thanks to a surge in purpose-built facilities. A report from CBRE emphasized that New York is in a stronger position for recovery compared to some of its competitors following a tightening in studio budgets.
Alex LoVerde, co-founder and CEO at ProdPro, remarked on New York’s investment in its entertainment sector, noting that it’s progressing faster than California’s attempts to implement reforms.
LoVerde stated, “California’s production spending is starting to rise again, but New York’s rebound has accelerated this year, putting it within reach of the country’s largest production hub. When we gathered the third-quarter data, we thought New York might actually surpass California. Ultimately, California maintained its lead by just $147 million. Whether New York can take over is something we will closely monitor in Q4 and into 2027.”
A recent analysis also highlighted that Hollywood studios now allocate only 42 percent of their production budgets within the United States, a significant drop from 74 percent two and a half decades ago. The report, produced by a coalition of Hollywood unions including IATSE, the DGA, and SAG-AFTRA, noted a dramatic decline in spending domestically. For instance, the percentage dedicated to film production budgets has fallen from 74 percent to 42 percent, while television spending domestically has decreased from 94 percent to 64 percent.
The findings detailed a focus on high-budget films and television episodes, including those with production costs of at least $5 million, and for television episodes costing upwards of $1 million for shorter formats, or $1.7 million for longer episodes. The New York Post reported that despite the overall dip, major studios have seen their production expenditures rise from $3 billion to $7 billion over the past 25 years, with TV spending notably increasing from $933 million to $8.4 billion within that same span.
