US Film and TV Production Sees Major Decline, Union Report Reveals

A new report from a coalition of Hollywood unions, including IATSE, the Directors Guild of America, and SAG-AFTRA, indicates a substantial decline in U.S. film and television production spending over the past 25 years. The report, compiled by EY, found that studios now spend 42% of their film production budgets in the U.S., a sharp decrease from 74% two decades ago.

For television production, the decline is equally significant, with spending dropping from 94% to 64% over the same period. The analysis focused on productions with budgets of $5 million or more for films and $1 million or more for TV episodes costing up to 40 minutes, or $1.7 million for longer episodes, all measured in 2025 dollars.

During the last 25 years, total spending on major film productions increased from $3 billion to $7 billion, while TV spending saw a more dramatic rise from $933 million to $8.4 billion. However, the U.S. share of this burgeoning global market has diminished.

The report highlights that the U.S. market's share of the 25 most expensive films decreased from 74% to 34%. These high-budget films, while representing a quarter of all major studio productions, account for half of the crew and two-thirds of the budgets. The report suggests that if the U.S. had maintained its previous production levels, an additional $4 billion would have been invested annually in domestic film and TV.

Discussions are underway in Congress regarding the potential for a 20% to 30% federal production incentive to stimulate the domestic industry. Proponents argue that such an incentive is necessary to compete with countries like Canada and the United Kingdom, which offer similar benefits. The Motion Picture Association released a study last month suggesting that a federal incentive could generate approximately $22 billion in annual domestic production spending by 2035, warning of continued decline if no action is taken.

Legislation proposing federal tax credits has been introduced, with some bipartisan support. Unions are planning a protest in Glendale, California, to advocate for these incentives. The report notes that the rise of streaming has fundamentally altered production scale, budgets, and release models, creating challenges in comparing television series across different eras. While the report quantifies the shift of productions overseas, it does not specify the reasons behind this trend.