When we mention Hollywood, this is often used to reference the film (and television) industry. This stems from the fact that many of the long time movies studios are located in that area along with the filming.

This is a district of Los Angeles. It has been the cultural epicenter of the United States (and perhaps the world) for a century. As we reported over the past 18 months or so, this is dying.

We are dealing with a multi-faceted downfall. There are many things to point to. Our regular analysis centers around technology and the impact it is having.

In this article, we will take a more geographical approach. The physical epicenter of Hollywood is waning.

Image from article linked below

Movie Industry Moving Out Of Los Angeles (Hollywood)

It is too costly to shoot in Los Angeles.

This is the consensus being reached by the industry. Over the last few years, movie making has left. It is a move that is meant to counteract the high costs associated with being in California.

Los Angeles is one of the most expensive places to live in America, and California is one of the most expensive places to shoot. It's sad to say, but Hollywood movies are rarely ever made in Hollywood anymore.

High cost of living means everything is expensive. This not only includes salaries but location rentals, permitting and materials for sets and costumes.

The situation is compounded by aggressive tax incentives being offered by other areas. This was done to lure Hollywood production to these areas. It is working.

But where are they all going? This is what we will share.

The New Hollywood?

In an article from NoFilmSchool.com, we get a list of a number of states (and countries) that is capturing much of the production/

Before getting to the article, two locations that were omitted from the list is Atlanta, GA, New Mexico, and Ireland. Both have picked up a great deal of the movie business, providing movie infrastructure that is needed.

From the article, we see, within the United States:

• Kentucky
• North Carolina
• Texas

These are led by tax cuts, both at the state and local level. For example, the City Louisville is spending $75 million to build a movie studio.

On a country level, we see Canada and the UK. Vancouver and London saw a huge uptick in the business. The UK government offered a 40% cut in corporate taxes.

Will any of these take over as the new Hollywood?

The concept of the old Hollywood dying would lead many to believe a new one will emerge. To me, this is a mistaken concept. We are in an era of decentralization. As we can see, it extends to geography.

My view is the pie will be sliced up from a physical perspective. Different areas are going to accumulate production share. Some might excel more than others but none will truly dominate. This is something that we are also seeing occur in the financial industry.

What this means is the cultural impact, which was well scripted, is waning. It will now switch overnight but Southern California as the center of this industry is now history. How this affects the culture will unfold over the next decade.

Of course, we still cannot overlook the impact of technology on this industry. Even these newer areas are going to face disruption from the technological advancements.

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