As Hollywood celebrates the Oscars on Sunday, the glitz masks a deeper crisis for the entertainment industry: rising production costs.
This year, none of the ten Best Picture nominees was primarily shot on a Hollywood soundstage or studio lot, as studios pursue tax incentives and lower costs across the US and overseas.
In 2025, California more than doubled its film and TV tax credit program to $750 million in a bid to keep projects from leaving the state.
Meanwhile, the industry has been rocked by tens of thousands of layoffs and an identity crisis over the use of AI.
This year’s Oscars reflect Hollywood’s struggle to stay competitive as filmmaking increasingly moves to more affordable locations, analysts said.
