Hollywood production house closes, citing entertainment industry struggles
As Hollywood evolves, staying in business has gotten harder.
For nearly two decades, production crews relied on Shadowcast Pictures for cameras, lighting and other essential filmmaking gear. The rental company was behind some of the fans' favorite films, TV shows and commercials before turning off the lights this year.
"I couldn't imagine the film industry that was profitable and had a foolproof system for over 100 years fall off a cliff," owner Jay Ellison said.
Ellison said he's been pushed to the edge by the COVID-19 pandemic, the actors' and writers' strikes, an ongoing production drought and the rise of artificial intelligence.
"AI is basically replacing the background, the lighting, even the costume, wardrobe, in certain instances," Ellison said. "It's all being changed and manipulated by AI."
His business is the latest to shut its door. More than 80 film and TV production service companies across Los Angeles have closed since 2022, including Faux Prop House, which shut down last year.
"This is a problem not just for the entertainment industry," entertainment lawyer Jonathan Handel said. "This is a problem for the economy of Los Angeles as a whole. It's one that needs to be addressed very aggressively by the next mayoral administration and by the next governor."
While California and LA have tried to lure production back to the Golden State with tax incentives, Handel said it's not moving the needle enough.
"It's very difficult," Handel said. "Once business has left and is left for a duration, those other locations build up a reservoir of physical and human capital, of trained crew members. It becomes harder to take the business back than it would have been to prevent it from leaving."
There could be some hope because production isn't only leaving Los Angeles, it's also spreading overseas. Lawmakers are now looking into a nationwide tax credit that would stack on top of state incentives to encourage more filming in the U.S.
