Hollywood Exodus Slows: How California Fights Back & New York Surges [2026 Film Trends] (2026)

The film and TV industry's spending patterns are a fascinating insight into the economic and cultural landscape of the United States. New York and New Jersey are experiencing a surge in production, with New York seeing a 57% increase in total production spend to nearly $1.06 billion in the second quarter of this year. This is a significant turnaround for the Empire State, which has bulked up its incentives to Hollywood, removing the cap on above-the-line qualified spending. What makes this particularly fascinating is the state's investment in the soundstage space, with a 43% growth in inventory since 2020. This is a strategic move, as evidenced by the opening of Sunset Pier 94 Studios and the recent filming of Paramount's 'A Quiet Place III'.

New Jersey, on the other hand, has seen a decline in total filming activity but a major increase in production spend, attributed to a dip in feature film starts and a rise in episodic TV filming. The state has formally designated Netflix, Paramount, and Lionsgate as studio partners, which has conferred a series of incentives to those companies over the long haul. This is a smart move, as it attracts production companies and provides a stable environment for them to operate in. However, it also raises a deeper question: what does this mean for the states that have traditionally been the hub of the industry, such as California, Georgia, New Mexico, and Illinois?

California, which has upped the ante with a doubled incentive program, has managed to halt the production flight to more attractive tax locales. This is a significant achievement, as it bucked declining filming activity as recently as the first quarter of this year. However, the state's dominance is not guaranteed, as evidenced by the decline in filming activity in Georgia, which was once a base for Marvel projects. The state had slipped below New Jersey in the fourth quarter of last year in terms of total spend, and the declines in Georgia are across both episodic and live-action features.

In my opinion, the film and TV industry's spending patterns are a reflection of the economic and cultural landscape of the United States. The industry is highly competitive, and states are constantly vying for production companies' attention. The incentive programs are a crucial factor in this competition, but they are not the only factor. Experienced crews, infrastructure, great locations, and a place where talent wants to work are also essential. The easier and more predictable a program is to use, the more competitive it becomes, as producers are trying to reduce risk.

One thing that immediately stands out is the importance of soundstage space. The growth in soundstage inventory in New York and New Jersey is a strategic move, as it provides a stable environment for production companies to operate in. This is particularly important in the current economic climate, where states are constantly vying for production companies' attention. The soundstage space is a tangible asset that can be used to attract production companies and provide a stable environment for them to operate in.

What many people don't realize is the impact of the incentive programs on the industry. The programs are not just about providing financial incentives; they are about creating a stable environment for production companies to operate in. The programs offer a meaningful credit, enough funding that producers know they'll actually get it, credits that are easy to monetize, a fast path to payment, and consistency from year to year. This is particularly important in the current economic climate, where states are constantly vying for production companies' attention.

If you take a step back and think about it, the film and TV industry's spending patterns are a reflection of the economic and cultural landscape of the United States. The industry is highly competitive, and states are constantly vying for production companies' attention. The incentive programs are a crucial factor in this competition, but they are not the only factor. The industry is also influenced by the availability of experienced crews, infrastructure, great locations, and a place where talent wants to work. The easier and more predictable a program is to use, the more competitive it becomes, as producers are trying to reduce risk.

In conclusion, the film and TV industry's spending patterns are a fascinating insight into the economic and cultural landscape of the United States. The industry is highly competitive, and states are constantly vying for production companies' attention. The incentive programs are a crucial factor in this competition, but they are not the only factor. The industry is also influenced by the availability of experienced crews, infrastructure, great locations, and a place where talent wants to work. The easier and more predictable a program is to use, the more competitive it becomes, as producers are trying to reduce risk.