Production slump challenges US film dominance
Writer: Mirella Franzese
August 2025 — Hollywood’s exit from Georgia has slashed production spending by 50% just three years after the 2023 writers’ and actors’ strikes disrupted the industry. For a sector once worth $4 billion annually, the exodus means billions in lost revenue, thousands of displaced workers, and a destabilized regional economy — a cautionary tale for U.S. film hubs.
The downturn marks a turning point. Marvel Studios, which produced nearly two dozen projects in Atlanta over the past decade and employed thousands of workers, has moved its next slate of productions overseas to London. “Atlanta has fared better than some other production markets, but the downturn remains considerable,” said Atlanta Film Society Executive Director Christopher Escobar.
At its peak in 2022, Georgia hosted 412 film and television projects, totaling $4.4 billion in direct spending. By the end of fiscal 2025, just 245 projects were filmed in the state. Escobar estimates that overall production activity now stands at only 30% to 60% of what it was a few years ago, leaving soundstages empty and many crew members without work.
The decline reflects a broader national slowdown. U.S. spending on film and television slipped 26% from 2022 to 2024, while competing markets such as Australia, Canada, New Zealand, and the U.K. continued to record growth.
States like New Jersey and Texas are racing to capture displaced business: New Jersey awarded Netflix $62.5 million in tax credits for producing Happy Gilmore 2 — more than 30% of the film’s $152 million in-state spend — and Texas boosted its incentive fund to $300 million every two years through 2035.
Escobar links Georgia’s downturn to the lingering effects of the strikes, which drove productions abroad, as well as intensifying global competition. “Other markets have become more aggressive with incentives, favorable exchange rates for the U.S. dollar, and environments with flexible or nonunion labor,” he told Focus:. “These factors have led to a substantial outflow of film and television projects.”
Unlike many of its rivals, the United States lacks a federal incentive program, leaving states to compete not only with each other but with entire countries. “This creates an uneven playing field, as states have no control over national policy,” Escobar said. By contrast, countries such as the U.K., Australia, and Canada combine film tax credits with universal healthcare and other benefits that reduce labor costs, making them even more attractive to studios.
With production budgets tightening as interest rates remain high and investors grow cautious, Escobar warns that tax incentives alone may no longer be enough to retain film work. “For the first time, there is national dialogue about policies needed to keep film and television production within the country,” he said. “While there is significant investment in real estate, fintech, food service, and healthcare, there remains a lack of informed investment in film, television, and music. Georgia must now consider how it contributes to the broader U.S. effort to retain production business.”
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