Hollywood, once a bustling production hub, is now facing challenges as studios seek lower costs overseas. California Governor increased film and TV tax credit to $750 million to bring more production to Los Angeles. President Trump threatens tariffs on foreign-made films, aiming to bring jobs back to the U.S. Uncertainty remains on how tariffs would work and their impact on the industry. Hollywood’s financial struggles stem from changing media landscape, streaming, and dwindling revenue sources. Domestic and international production hubs offer better incentives, infrastructure, and workforce, drawing productions away from Los Angeles. Competition abroad is heating up, with countries like Canada, the U.K., Australia, and New Zealand offering generous tax incentives and skilled industry talent. Industry experts worry about the impact of tariffs on international relationships and box office sales. Calls for bipartisan federal film incentives to bring production back to the U.S. and avoid unintended consequences. Los Angeles seeks to encourage studios to use existing infrastructure with new tax incentives.

Read more at CNBC: Why production has left Hollywood