Navigating Uncertainty: The Future of L.A.’s Soundstage Industry

Hollywood Soundstage Operators Are Reeling. Will State Tax Credits Help?

Los Angeles’ soundstage industry has been hit hard by a series of disruptions, including the pandemic, Hollywood strikes in 2023, and a steady migration of film and TV production to other states and countries. The downturn has impacted not only soundstage owners but also the broader ecosystem of prop houses and service providers.

In response, California lawmakers have more than doubled the state’s annual film and TV tax credit to $750 million, a move industry leaders hope will help revive local production. Studio executives view the expanded credit as a major step forward. However, many operators remain cautious, noting that the road to recovery is steep and competition for tenants is fierce.

Peter Marshall, Managing Principal of Media Insurance Services at EPIC, recently spoke with the Los Angeles Times to share his perspective on the current landscape. Marshall, who counts both L.A.-based, as well as New York, Georgia, and U.K.-based soundstages as clients, notes that while most operators are still “treading water,” there’s reason for optimism. In Los Angeles, he points to California’s deep entertainment infrastructure and talent pool as key asset, but believes a Federal tax credit could be the “game changer” that finally turns the tide.

Elsewhere in the U.S., from Arizona and New Mexico to Louisiana and Georgia, and up to New Jersey and New York, terrific existing and exciting new soundstage campuses would benefit from a Federal incentive that overlays those offered by individual states by keeping more U.S.-developed shows.

Marshall’s perspective reflects EPIC’s commitment to supporting the media and entertainment industry through strategic guidance and advocacy. As the conversation around incentives evolves, EPIC remains a trusted voice in shaping the future of film and television production in California and beyond.