California officials clash with Hollywood as productions flee to cheaper locales
California’s Attorney General Rob Bonta is challenging Paramount’s merger, prompting the studio to consider leaving the state, while lawmakers grapple with a sharp loss of film jobs.
Rob Bonta, California’s attorney general, has launched an antitrust case against Paramount’s planned purchase of Warner Bros. Discovery, a move that CEO David Ellison says could force the studio to relocate outside the state by early October. The legal battle coincides with a broader exodus of film and TV projects, as Los Angeles County reports a loss of more than 42,000 jobs since 2022, according to Congresswoman Laura Friedman, a former producer.
High production costs and competitive tax incentives have driven studios to film in states like Illinois, Louisiana, Georgia, New Mexico and New York, as well as abroad in Canada, the United Kingdom, Romania and the Canary Islands. Although the state legislature doubled the Film & Television Tax Credit Program to $750 million, Governor Newsom’s proposal to restrict corporate tax credits has been criticized for undermining those incentives.
Major unions, including the Directors Guild of America and IATSE, have urged Bonta to settle the lawsuit, warning that the uncertainty threatens remaining employment. The dispute highlights a growing tension between California’s regulatory approach and the industry’s need for cost-effective production environments.
Why it matters
The conflict threatens thousands of California jobs and could reshape where major entertainment projects are produced.
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