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Even more so than usual, Hollywood’s future is uncertain. For decades the Los Angeles economy revolved around the film industry, but now more movies and shows are filmed elsewhere, driven or lured away by high expenses or tax incentives. The prospect of Paramount leaving California over the state’s antitrust lawsuit may not be serious, but the very idea that it can be entertained shows how much the economics of the industry have changed.
Los Angeles isn’t the only US city being forced to consider a future without the industry that has defined its identity. Over the last half century, if you worked in tech, the Bay Area was the place to be, with access to top talent and financing. If you wanted to become a finance master-of-the-universe, you needed to at least start your career in New York. Now all of this is changing — with implications not only for these cities but also for the US economy.
Even more so than usual, Hollywood’s future is uncertain. For decades the Los Angeles economy revolved around the film industry, but now more movies and shows are filmed elsewhere, driven or lured away by high expenses or tax incentives. The prospect of Paramount leaving California over the state’s antitrust lawsuit may not be serious, but the very idea that it can be entertained shows how much the economics of the industry have changed.
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Allison Schrager is a senior fellow at the Manhattan Institute, a contributing editor of City Journal, and a Bloomberg Opinion columnist.