New York’s 87% Production Spending Surge Threatens California’s Film Dominance
New York is rapidly closing the gap with California in film and TV production spending, with its expenditure surging 87% to $1.61 billion compared to California’s 17% increase to $1.76 billion. This shift is driven by expanded soundstage infrastructure, major studio investments, and a growing preference for multi-season scripted series on the East Coast.
Key points
- California remains the top market for production spending at $1.76 billion, but New York is close behind at $1.61 billion.
- New York’s production spending grew by 87% recently, while California’s increased by only 17%, according to ProdPro data.
- New York is attracting long-term scripted series like 'CIA,' 'FBI,' and 'Law & Order,' while California is losing such projects.
- The East Coast’s growth is fueled by a 43% increase in soundstage inventory since 2020 and new facilities like Sunset Pier 94 Studios.
- Major media companies are solidifying their presence in New Jersey, with Netflix building a hub at Fort Monmouth and Paramount leasing Bayonne’s 1888 Studios.
Background
California has been losing production jobs to other states and countries, prompting Governor Newsom to sign a $10 million post-production tax credit in September 2026 to retain creative work. This follows the relocation of 'American Idol' to Georgia due to superior tax incentives, highlighting a broader trend of entertainment companies leaving California for more business-friendly environments.
Why it matters
The shift in production spending indicates a potential change in the US entertainment landscape, with New York poised to challenge California’s long-standing dominance. This could impact job markets, infrastructure development, and the economic strategies of both states as they compete for major media investments.
What to watch
Industry experts are watching whether New York will overtake California in the fourth quarter of 2026 or in 2027. Continued investment in soundstages and long-term studio leases will be critical in determining the future balance of power in the film and TV industry.
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