A Hollywood Exit: What California Must Do to Remain Competitive in Entertainment - and Keep Jobs

California's stronghold on the entertainment industry is loosening as production jobs are lured to other locations due to production credits and other tax breaks. Between 2004 and 2012, the state lost more than 16,000 jobs in filmed production employment—a more than 10 percent drop. Meanwhile, New York, California's main rival, added more than 10,000 such jobs. These jobs contribute to state revenues and provide sustainable incomes that result in significant local spending. 

This report determines what can be done to make California more competitive, its authors make recommendations for improving California's incentive program, based on what's working elsewhere, and suggests ways for California to leverage its strategic advantages, namely serving as the headquarters of most studios, distributors and producers, its role as home to the largest concentration of entertainment talent in North America, and its strong existing infrastructure.