Hollywood’s Decline Accelerates: Budget Cuts, Show Cancellations and Failed Expansions Signal Trouble Ahead
By Mike Fortin
CineDrones Blog | June 6, 2025
LOS ANGELES — The pulse of Hollywood continues to weaken as a series of industry setbacks paint a grim picture for the future of entertainment production in California and beyond.
Once the global epicenter of film and television, Hollywood is grappling with increasing show cancellations, shrinking state support, and the collapse of major expansion efforts such as “Hollywood 2.0” in Las Vegas.
Shows Cancelled at Record Pace
More TV shows were canceled in early 2025 than in any comparable period in recent history. Streaming platforms and networks alike have slashed programming as profitability tightens and content strategies shift.
Among the biggest losses: The Acolyte (Disney+), 9-1-1: Lone Star (Fox), Evil (Paramount+), My Lady Jane (Prime Video), and cult favorite Our Flag Means Death (Max). In many cases, fan engagement and critical acclaim weren’t enough to outweigh cost concerns.
Even long-running hits like Bob Hearts Abishola and So Help Me Todd have been cut, underlining the volatility of what used to be secure broadcast real estate.
California Leaves $450 Million on the Table
In what some are calling a devastating omission, California lawmakers left a proposed $450 million expansion to the state’s Film and Television Tax Credit Program out of the final state budget draft.
Gov. Gavin Newsom had proposed growing the annual credit pool from $330 million to $750 million in an effort to stem the outflow of productions to other states. But with California facing a $12 billion budget deficit, the legislature pulled back.
The result is a missed opportunity, according to industry analysts. California reportedly lost $1.6 billion in production spending between 2020 and 2024 due to limited tax credit availability, while competitors like Georgia, New York and New Mexico continue to lure productions with aggressive incentives.
Las Vegas’ “Hollywood 2.0” Plan Collapses
In Nevada, the dream of a Las Vegas-based “Hollywood 2.0” has fizzled.
A proposed $95 million per year tax credit package designed to support the construction of Sony and Warner Bros.-backed Summerlin Studios was denied by the state legislature last month.
The project, which aimed to make Las Vegas a new hub for film and TV, faced skepticism from lawmakers who cited weak return-on-investment projections and concerns about long-term sustainability. The loss underscores the growing hesitation around large-scale entertainment investments amid industry uncertainty.
The Big Picture
Once responsible for nearly half of all U.S. film production, California’s market share has dropped below 30%. Rising costs, union disputes, tax limitations and a fractured streaming economy are contributing to what many now describe as a slow exodus of production power.
“Hollywood isn’t just declining — it’s being redefined,” one veteran producer told CineDrones. “We’re watching the center of gravity shift away from Southern California.”
For small production companies, freelancers and specialized service providers like drone cinematographers, these changes can be devastating. As the ecosystem shrinks, so too does the demand for local talent and crews.
A Call for Innovation and Resilience
As someone who has spent more than a decade in this industry both in front of and behind the camera, I’ve seen the changes firsthand. This isn’t just a blip — it’s a structural shift. But within disruption lies opportunity.
If Hollywood is to survive, it must reinvest in bold storytelling, simplify regulations, and double down on emerging technologies like virtual production and aerial cinematography. Supporting the workers and creatives who make this industry thrive is not just a feel-good headline — it’s an economic imperative.
Stay with CineDrones for continued updates and insights on how the business of Hollywood is evolving day by day.
