Hollywood used to be a job machine. Now it’s shedding workers fast.
And yet my opponent, State Sen. Marilyn Dondero-Loop (D-Clark), thinks this is the perfect time to write big checks to bring that same industry here to our district.
A new report from the Wall Street Journal – “See How Hollywood’s Job Market Is Collapsing” – shows the film and TV business is in serious trouble.
Jobs in the industry have dropped about 30 percent since late 2022. Studios are making fewer shows and movies. And the ones they do make are often filmed outside the United States.
That’s not a small dip. That’s a warning sign.
The reason is simple. Companies are chasing tax breaks. Countries like Canada, the United Kingdom, and Australia are offering huge subsidies.
In some cases, they refund nearly half the cost of filming. So studios pack up and leave.
Sound familiar?
That’s exactly what Nevada’s proposed “Hollywood Handout” is trying to do. The idea is to lure film studios to Las Vegas with generous transferable tax credits.
Supporters say it will create jobs and boost the local economy. But the facts tell a different story.
Even with massive subsidies, the industry is shrinking.
Streaming companies like Netflix and Disney+ are cutting back. Wall Street is demanding profits, not endless spending. So studios are making fewer projects overall.
You can’t subsidize your way out of that.
It’s like trying to build a new Blockbuster store right when everyone is switching to streaming. The business model itself is changing.
And it gets worse.
Much of the production work is moving overseas not just for tax breaks, but because labor is cheaper. Some projects are even being filmed in countries where English isn’t the primary language.
That means Nevada taxpayers could foot the bill while the jobs still don’t stay here long term.
Supporters of the bill argue that incentives are needed to compete. They say other states like Georgia and New York have seen growth from film tax credits.
That’s true, up to a point. But even those states are facing questions about whether the return on investment is worth it.
Studies have shown many film subsidies bring back far less in tax revenue than they cost. In plain terms, government gives away a dollar and gets back pennies.
And in Nevada, where we already struggle with education funding, water issues, and public safety needs, that matters. Every dollar spent on Hollywood subsidies is a dollar not spent on teachers, roads, or police.
There’s also a bigger question: If the industry itself is shrinking, why are we chasing it?
The Journal report even raises concerns that Hollywood could end up like Detroit after the auto industry declined. That’s not the kind of future Nevada should be investing in.
And technology is changing everything.
People are watching more content on YouTube and TikTok. Smaller creators are replacing big studio productions. Even artificial intelligence could reduce the need for large film crews.
That’s where the market is heading. Yet Nevada’s “Hollywood Handout” is built on the idea that the old system is coming back.
It’s not.
Smart economic policy means investing in industries that are growing, not ones that are cutting jobs and chasing subsidies around the globe.
Nevada doesn’t need to win a bidding war for a declining business. We need to focus on building a stable, diverse economy that doesn’t rely on government handouts to survive.
Because when the subsidies dry up, so do the jobs.
The opinions expressed by contributors are their own and do not necessarily represent the views of Nevada News & Views. Digital technology was used in the research, writing, and production of this article. Please verify information and consult additional sources as needed.
