Los Angeles | December 30, 2025
Hollywood faced a turbulent 2025 marked by production slowdowns, technological disruption, and major corporate shifts. Los Angeles shooting days fell over 20% from 2024, while California’s global share of production dropped to approximately 18.3% as studios increasingly moved filming to lower-cost locations like the UK and Georgia—a trend known as “runaway production.”
In an effort to retain jobs and film projects in-state, Governor Gavin Newsom doubled California’s tax incentives to $750 million, which analysts hailed as a rare bright spot amid otherwise challenging conditions for the local industry.
The growing role of artificial intelligence also stirred industry concerns. Organizations such as the Animators Guild warned that AI-driven workflows could impact more than 200,000 jobs, affecting visual effects artists, animators, and other behind-the-scenes personnel.
Meanwhile, rumors of Netflix pursuing Warner Bros. generated speculation about potential shifts in theatrical windows, content ownership, and streaming power consolidation, further adding to industry uncertainty.
Despite challenges, the box office saw a modest rebound, largely fueled by PG-rated family films and high-profile sequels. Original content, however, struggled to compete with streaming platforms, YouTube, and TikTok, which continued to dominate audience attention.
Looking ahead, industry analysts predict further disruption in 2026, with ongoing debates over AI regulation, streaming consolidation, and the balance between theatrical and digital releases shaping Hollywood’s trajectory.
