A coalition of major Hollywood labor unions issued a stark assessment of the entertainment industry on Monday, warning that domestic film and television production is nearing a critical juncture. According to an extensive new economic study commissioned by the organizations, major U.S. studios have steadily migrated their spending and filming activity overseas over the past 25 years, leaving domestic production infrastructure and middle-class entertainment jobs vulnerable.

Hollywood Unions Warn U.S. Film & TV Production Is On The Brink In Latest Economic Report
Image via Deadline

Quarter-Century Contraction in U.S. Production Spending

The newly released analysis tracks production data from 1999 to 2024, focusing specifically on live-action scripted projects from larger studios. Eligible projects included feature films budgeted at $5 million or more, short television episodes costing at least $1 million, and longer episodes budgeted at $1.7 million or above.

U.S. Share of Film and Television Production (1999 vs. 2024)

Metric1999 Share2024 ShareTotal Change
Film Production Spending74%42%-32 percentage points
TV Production Spending94%64%-30 percentage points
Total Film Titles66%54%-12 percentage points
Total TV Episodes96%70%-26 percentage points
Film Cast & Crew Employment72%43%-29 percentage points
TV Cast & Crew Employment86%58%-28 percentage points

Over that 25-year span, the share of studio spending dedicated to feature films made either partially or primarily in the United States dropped sharply. Domestic movie spending declined 32 percentage points, dropping from 74% in 1999 to just 42% in 2024. A comparable downturn hit the television sector, where domestic spending dropped 30 percentage points, falling from 94% down to 64%.

Fewer Domestic Shoots and Shrinking Job Shares

Beyond production budgets, the physical volume of film and episodic shoots inside the United States experienced steep downturns. Between 1999 and 2024, the proportion of major studio feature films shot primarily or partially in the U.S. decreased by 12 percentage points, moving from 66% to 54%.

The drop was more pronounced in the television marketplace. In 1999, roughly 96% of television episodes from major studios were produced primarily or partially in the country. By 2024, that figure had fallen 26 percentage points to 70%.

These shifts have directly affected the domestic entertainment labor force. According to the unions' findings, the U.S. share of total cast and crew employment on major studio feature films fell by 29 percentage points, sliding from 72% down to 43%. On television productions, the domestic workforce share decreased 28 percentage points, shifting from 86% to 58%.

High-Profile Studios Shift Tentpoles Overseas

The report attributes these sustained declines in part to an ongoing industry exodus, noting that prominent studios have relocated large-budget tentpoles to international hubs. Brands such as Marvel and Lucasfilm have shifted virtually all of their high-budget development abroad, including upcoming installments in the Avengers film franchise.

Other major entertainment companies have followed a similar path. The report notes that studios such as Warner Bros., Paramount, and NBCUniversal have moved recent high-profile feature projects across international borders, including productions like Barbie, Wicked, and Sonic the Hedgehog.

Unions and Industry Groups Urge Federal Tax Action

The study was jointly commissioned by a sweeping alliance of entertainment unions, including SAG-AFTRA, the Directors Guild of America (DGA), the International Alliance of Theatrical Stage Employees (IATSE), the Writers Guild of America East (WGAE), the Writers Guild of America West (WGAW), the International Brotherhood of Teamsters, and the Laborers’ International Union of North America (LIUNA).

In a joint statement issued Monday, the labor organizations warned that without swift policy intervention, the country risks losing its competitive footing in maintaining domestic industry operations and middle-class employment. The coalition pointed to previous research from the Motion Picture Association, which outlined potential economic remedies. The MPA previously reported that a proposed 20% federal tax credit—designed to stack on top of existing state incentives—could potentially support an annual average of 143,500 additional jobs and inject $250 billion in gross economic value into the national economy.

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Source: Deadline

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