The film and TV industry is experiencing a fascinating shift in spending patterns, with New York and New Jersey emerging as unexpected contenders in the race to attract Hollywood's attention. While California, once the undisputed leader, faces challenges, the East Coast states are making significant strides, offering a compelling narrative for the industry's future.
The East Coast's Rise
New York and New Jersey are witnessing a surge in film and TV production spending, challenging California's dominance. New York, in particular, has seen a remarkable 19% increase in filming count and a staggering 57% surge in total production spend, reaching nearly $1.06 billion in the second quarter of this year. This resurgence is fueled by the state's removal of the cap on above-the-line qualified spending and other incentive programs.
The Empire State's soundstage space is expanding rapidly, with a 43% growth in inventory since 2020. This growth is evident in the bustling soundstage complex Sunset Pier 94 Studios, which opened this year, and the recent filming of Paramount's 'A Quiet Place III' in the city. New York's soundstage industry is thriving, with employment levels reaching 86% of pre-pandemic levels, according to a CBRE study.
New Jersey, while experiencing a decline in total filming activity, has seen a significant increase in production spend, rising 41% to $387 million for the quarter. This is attributed to a strategic move to attract major productions, including Netflix's East Coast soundstage base at the former Fort Monmouth site and Paramount's 10-year lease at 1888 Studios in Bayonne. The state's formal designation of Netflix, Paramount, and Lionsgate as studio partners has proven to be a successful strategy.
California's Challenge
California, once the industry's powerhouse, is facing a production exodus, with spending declining in the first quarter and a 5% increase in production spend in Q2 2026, despite a 11% growth in filming count. The state's incentive program, which has been doubled, is attempting to halt the flight to more attractive tax locales, but the early data suggests a slow recovery. The challenge lies in the complex interplay of factors, including incentives, crew availability, infrastructure, and talent attraction.
The Incentive Factor
Alex LoVerde, ProdPro's co-founder and CEO, highlights the importance of competitive incentive programs. He emphasizes that meaningful credits, easy monetization, fast payment, and consistency are crucial for producers' risk reduction. While incentives are a significant factor, LoVerde notes that experienced crews, infrastructure, and talent availability also play a pivotal role in production decisions.
The Competitive Landscape
The industry's competitive landscape is evolving, with states like Georgia, New Mexico, and Illinois experiencing dips in production spending and activity. Georgia, once a Marvel hub, has seen a 40% decline in filming activity and a 43% drop in production spend, with Marvel projects now based in the U.K. The state's incentive program, while competitive, may need further enhancements to regain its position.
Conclusion: The Future of Film and TV
The film and TV industry's spending dynamics are in flux, with the East Coast states challenging California's dominance. New York and New Jersey's strategic incentives and infrastructure investments are paying off, attracting major productions. California's efforts to regain its position are underway, but the industry's competitive nature means that states must continually adapt and innovate to secure their share of the market. The future of film and TV production is a dynamic and evolving story, with the East Coast states making a compelling case for their place in the industry's spotlight.
