Studios put 42% of film budgets into U.S.-shot productions, down from 74% in 1999: Study

Major Hollywood studios now spend 42% of their film production budgets on movies shot mostly or partly in the United States, down from 74% a quarter-century ago, according to a study commissioned by seven Hollywood unions.

The report, prepared by EY Quantitative Economics and Statistics and released Monday, compared 1999-2001 with 2022-2024. The share of film budgets going to productions filmed primarily outside the U.S. rose from 26% to 58% over that period. Of the 42% that remains, 37% went to films shot primarily in the U.S. and 5% to films with partial U.S. filming.

The shift also showed up in employment. The share of cast and crew working on films shot mostly or partly in the U.S. fell from 72% to 43%. Among the 25 highest-budget films each year, which account for roughly two-thirds of film spending, the U.S. share of budgets dropped from 74% to 34%. EY estimated that annual U.S. film production budgets would be about $2 billion higher had the shares not changed.

Television followed a similar path. The U.S. share of episode budgets fell from 94% to 64%, the share of episodes from 96% to 70%, and the share of cast and crew from 86% to 58%.

Among the major foreign destinations that gained share, the United Kingdom added the most, 14 percentage points of film budget share. Italy gained 6, Australia 3, and Iceland and Portugal 2 each.

The study covers scripted, live-action productions by major U.S. studios with budgets of at least $5 million for films. For television, it covers episodes costing at least $1 million if they run 40 minutes or less and at least $1.7 million if they run longer. All thresholds are in inflation-adjusted 2025 dollars. Spending in that category has grown, with film budgets averaging about $7 billion a year in 2022-2024, up from about $3 billion in 1999-2001. EY said that growth largely tracks the broader economy, noting that U.S. gross domestic product rose by a factor of 2.7 while film budgets rose by a factor of 2.3.

EY said the analysis measures where productions were filmed and does not try to explain why they moved. The report also notes that it made no adjustment for co-financing, which could overstate the relocation of U.S. studio productions. About 20% of film budgets and 80% of television budgets were estimated using regression models.

The findings come as Congress weighs a bipartisan federal film tax incentive that would offer a 20% base rate on cast and crew spending, rising to 30% with certain bonuses. A separate Motion Picture Association study estimated that annual U.S. production spending could reach $38.7 billion in 2035 with such an incentive, compared with $16.7 billion without one. Backers hope to pass the measure by the end of the year, with any vote expected after the November midterm elections.