Union Report: U.S. Film and TV Production Spending Drops Sharply as Studios Shift Overseas
A new report commissioned by major Hollywood unions reveals that U.S. film and television production is in severe decline. Between 1999 and 2024, major studios shifted 32% of movie spending and 30% of TV spending to overseas locations. This shift has reduced the share of U.S.-based cast and crew for major films from 72% to 43%. Unions warn that without federal intervention, the industry will continue to lose middle-class jobs, citing a proposed 20% federal tax credit that could generate $250 billion in economic value.
Key points
- Union-commissioned report shows major U.S. studios moved 32% of movie production spending overseas since 1999.
- Television production spending in the U.S. dropped 30% over the same period, from 94% to 64%.
- The share of cast and crew working on major films in the U.S. fell from 72% to 43%.
- Studios like Marvel, Lucasfilm, Paramount, and Warner Bros. have relocated high-budget tentpoles abroad.
- Unions urge Congress to pass a 20% federal tax credit to reverse the trend and save jobs.
Background
This report follows months of advocacy by President Trump and industry leaders for a federal film and TV tax credit. In late August and September 2026, unions and lawmakers, including Sen. Adam Schiff and Rep. Laura Friedman, pushed for bipartisan legislation to counter the loss of production to other countries. California has also increased its own state incentives, but the national debate remains focused on a federal mechanism that could stack with state benefits.
Why it matters
The decline in domestic production threatens thousands of middle-class jobs in the entertainment sector. If the proposed federal tax credit is not enacted, the U.S. may continue to lose its competitive edge to international markets, further eroding the economic value of the domestic film and TV industry.
What to watch
Congress is expected to debate the proposed 20% federal tax credit, which industry groups argue could support an additional 143,500 jobs annually. The outcome of this legislative push will determine whether studios return high-budget productions to the U.S. or continue shifting them overseas.
Want the full story? Read the original reporting
Read on Deadline