According to a study conducted by EY Quantitative Economics and Statistics, Hollywood has experienced a collapse in domestic production over the past 25 years, as the industry has increasingly chosen to produce films and television series in foreign markets. The report was commissioned by a coalition of unions: DGA (Directors Guild of America), IATSE (International Alliance of Theatrical Stage Employees), SAG-AFTRA (Screen Actors Guild-American Federation of Television and Radio Artists), Teamsters, LiUNA (Laborers’ International Union of North America), and the two Writers Guilds of America, East and West.
The study examines the period between 1999 and 2024, highlighting how the share of budgets allocated to U.S. productions fell from 74% to 42%. At the same time, the share of films produced outside the United States rose from 26% to 58%.
This phenomenon is particularly evident in Hollywood blockbusters. Among the most recent examples is Spider-Man: Brand New Day, filmed primarily in the United Kingdom, with Glasgow transformed to recreate some of the exterior settings of New York. Avengers: Doomsday also carried out most of its filming between England (Pinewood Studios) and Bahrain.
The trend is not limited to Marvel: Matt Reeves’ The Batman was filmed predominantly in Great Britain, while Mission: Impossible – Fallout used locations in several countries, including the United Kingdom, France and Norway. Gladiator II was also produced across Malta, Morocco and the United Kingdom. Another example is Christopher Nolan’s The Odyssey, which was filmed in several international locations, including Morocco, Greece, Italy, Iceland and Scotland, with Malta involved in some stages of production.
These examples show how major American studios are increasingly relying on foreign infrastructure and tax incentives. Italy is also an example, offering a tax credit for foreign productions that provides a tax credit of up to 40% of eligible expenses incurred in the country.
The growth of television series has also undergone a profound transformation with the rise of streaming. The data show a decline in the share of budgets allocated to U.S. productions, from 94% to 64%. EY highlights how streaming has significantly changed production budgets, season lengths and distribution models, creating a discontinuity between different periods.
Among the most significant examples of television productions filmed in Italy is Ripley, created and directed by Steven Zaillian. The series was produced by Showtime and distributed on Netflix. The locations used include Rome and its surroundings, Naples, Venice, the Amalfi Coast, Cinecittà soundstages and Palermo.
The market, however, has undergone a radical transformation as a whole. Annual spending on film production rose from approximately $3 billion in the 1999–2001 period to around $7 billion between 2022 and 2024.
Meanwhile, Congress is considering a federal tax incentive to bring productions back to the United States. The proposal provides for a 20% tax credit on American labor costs, extendable up to 30%. According to a study by the Motion Picture Association, the measure could generate $22.1 billion in new production spending by 2035, although this is an estimate based on economic projections.
Photo Credits: Photo by Nik Shuliahin su Unsplash
