Why is Netflix Moving to Los Angeles Despite Higher Production Costs?

The state of California has increased its tax budget for the filming industry to $330 million this year. This is to help attract and retain major productions and production companies. Netflix is investing about $6 million into its infrastructure to create a home base for filming original content primarily in Los Angeles, California.

Incentives in Other States

los angelesIncentives to film in other states has dropped drastically this past decade, from around all 50 states to about 35. Apparently, several states couldn’t afford to upkeep the budget necessary to incentivize filming at their locations.


It is estimated to cost an extra 25% per episode to film in LA. Even though it could be a costly decision for Netflix, experts believe that setting up shop there will be a bigger benefit for them. It will give them a “competitive advantage.

Consideration for tax incentives that cause overcrowding in places like New York have also made the decision to film in Los Angeles a little bit easier.

Netflix‘s Chief Content Officer, Ted Sarandos explained that filming in other states was often a strain on the families of actors and actresses. Not to mention, it is also hard on the actors and actresses themselves. It is also more difficult to attract top talent for a television show over a movie when filming out of state.

Keeping Talent from Jumping Ship

Talent will, more likely, be willing to work out of state to film a movie that only lasts about three months over a TV Series that can potentially drag out for years. He feels that instead of “chasing tax credits,” building a strong infrastructure will give them the foundation they need to be successful.

He mentioned that it would benefit them because they would be able to attract more A-List actors and actresses. Removing the strain from everyone is sure to help contribute to creating better quality content as well. He feels that as long as his cast can live comfortable lives, they will be more productive. It will also save them time for travel.

The Mayor is Hopeful for New Job Prospects

Mayor Eric Garcetti is beyond thrilled with this decision because he knows that it will instill the value of Hollywood’s actors and actresses to have such a successful and giant creative force planting roots there. He’s pleased with the prospects of new jobs that it will bring to the city.

Already on the Move

Even relatively large Netflix Original series franchises have already started moving to Los Angeles. American Horror Story and Scream Queens both moved from Louisiana to L.A. in 2016 and actually ended up with better prospects for tax credits.

The Netflix Chief Content Officer did admit that filming elsewhere wasn’t totally out of the question, but he feels good about the decision he has made to try to create a better working environment for his cast in Los Angeles.

A Higher Price for Quality

It is true that sometimes better work comes with a higher price tag. Since a lot of theselos angeles
people being cast for roles in these major television series productions on Netflix, are going to be able to stay in the comfort of their own homes with their own families it will most likely increase the quality of production.

What do you think? Do you think this was a smart move? Or do you think that they are throwing money away? Comment Below.

[See Also: 5 Tips and Tricks to Cut Your Cable Bill and Use Streaming Services Instead]




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