Los Angeles's film and television production industry is experiencing a paradox: while new soundstage facilities continue to emerge, a significant portion of existing studio space remains unoccupied. This trend underscores a broader contraction in local production, a situation exacerbated by past industry strikes and a shifting landscape in content creation. The decline in occupancy rates, even amidst an increase in overall studio capacity, signals a challenging period for the region's production infrastructure and workforce.
Once boasting nearly full capacity, the sector now grapples with a surplus of studio space, indicating a need for strategic adjustments to align supply with current production demands. This imbalance has implications not only for facility owners but also for the thousands of professionals employed in the industry, necessitating a re-evaluation of growth strategies and support mechanisms for the creative economy in Los Angeles.
Increasing Vacancy Amidst Expanding Infrastructure
In the first half of 2025, Los Angeles soundstages saw a notable drop in their utilization, with occupancy rates falling to 62%. This figure represents a considerable decline, dipping below the levels recorded during the major industry strikes of 2023. Paradoxically, this slump in usage coincides with the expansion of new production facilities within the region. For instance, East End Studios unveiled its five-stage Mission Campus in Boyle Heights in January, and Cinespace Studios launched six new stages at its Woodland Hills location in March. Several other studio projects are also progressing through various stages of approval and construction, signaling a continued increase in available soundstage capacity. This presents a complex challenge where a growing supply of studio space meets a diminishing demand for its use.
This situation marks a significant shift from just a few years prior when state officials expressed concerns about a potential shortage of soundstage space. During the peak of the streaming content boom, occupancy rates frequently exceeded 90%. In response, the California Legislature even approved a $150 million subsidy in 2021, aimed at incentivizing local production and preventing filming activities from moving to less saturated areas. However, the subsequent contraction of the industry, which predated the 2023 strikes, has dramatically altered this landscape. The number of production jobs in California plummeted from 136,000 in 2022 to 82,000 by September 2025, illustrating a 40% reduction. This downturn indicates that while infrastructure growth continues, the actual volume of production has not kept pace, leading to the current surplus of available studio space.
Global Competition and Local Industry Contraction
While Los Angeles maintains its position as a global leader in soundstage capacity, holding approximately 8.3 million square feet in 2025 (an increase from 8 million the previous year), it faces growing competition from other major production hubs. The United Kingdom, for example, expanded its soundstage footprint from 7 million square feet in 2024 to 7.7 million in 2025. Similarly, New York's capacity surged from 3.4 million square feet to 4.4 million during the same period. These figures highlight a global trend of expanding production infrastructure, which intensifies the competition for film and television projects.
Locally, the challenges extend beyond soundstage occupancy. FilmLA, a non-profit organization responsible for processing film permits in Los Angeles County, has reported a sharp decrease in location shoots. Their extensive database of permit volumes reflects a significant downturn in on-location production activities, mirroring the struggles faced by soundstage operators. This comprehensive contraction across various facets of film and television production in Los Angeles suggests a deeper industry-wide adjustment. As other regions enhance their capabilities and attract more productions, Los Angeles must navigate a more competitive environment, requiring innovative strategies to rejuvenate its production sector and maintain its standing as a premier global entertainment hub.
