The landscape of film and television production across the United States experienced a noticeable contraction in the first quarter of the current year, with most major filming hubs reporting a decrease in activity. However, bucking this nationwide trend, New Jersey has emerged as a significant exception, demonstrating robust growth in both the volume of productions and the associated financial investment. This surprising surge in the Garden State, often dubbed "Hollywood East," stands in stark contrast to the prevailing slowdown, prompting a closer examination of the factors driving its success and the implications for the broader industry.
According to a comprehensive report released Tuesday by ProdPro, a leading production intelligence platform, New Jersey witnessed a remarkable 45 percent year-over-year increase in its filming count. Concurrently, production expenditure within the state surged by an impressive 37 percent. These gains are particularly significant when juxtaposed with the performance of other established production centers, many of which either saw their filming numbers decline or remain relatively stagnant during the same period.
The "Hollywood East" Phenomenon: A Confluence of Factors
Industry analysts attribute New Jersey’s ascendant trajectory to a potent combination of strategic initiatives and existing advantages. The primary driver identified is a substantial uptick in episodic television production. The state’s appeal to series creators has been amplified by a compelling mix of competitive tax incentives, a developing studio infrastructure, and a readily available pool of skilled labor. This burgeoning ecosystem is poised for further expansion with several major studio complexes currently under development.
Foremost among these is Netflix’s ambitious $1 billion investment to establish its East Coast production base. This expansive project, situated at the former Fort Monmouth site, will feature 12 state-of-the-art soundstages, signaling a long-term commitment to the region. In parallel, Paramount has secured an 85,000-square-foot lease at the under-construction 1888 Studios in Bayonne, a commitment that will last for ten years. Lionsgate is also poised to become a cornerstone tenant at Great Point Studios in Newark, further solidifying the state’s growing reputation as a premier production destination.
These substantial infrastructure investments are not merely speculative; they are a direct response to the increasing demand for production facilities and the state’s proven ability to attract and support large-scale projects. The ongoing development of these complexes signifies a strategic vision to position New Jersey as a permanent and significant player in the global entertainment production industry.
Blockbuster Productions Fueling New Jersey’s Rise
The allure of New Jersey’s incentives and infrastructure is already being leveraged by major Hollywood players. The state recently served as the filming location for Steven Spielberg’s highly anticipated science fiction feature, Disclosure Day. Positioned as a major summer tentpole release from Universal Pictures, the film’s selection of New Jersey underscores the state’s capability to accommodate high-budget, star-studded productions.
Another notable project filmed in the Garden State is Amazon MGM’s young Sylvester Stallone biopic, I Play Rocky. This film, which is slated to premiere fifty years after the original Rocky hit theaters, highlights New Jersey’s versatility in accommodating diverse genres and historical narratives. The producer of I Play Rocky, Toby Emmerich, publicly acknowledged the state’s pivotal role in the production’s realization. In a statement to The Hollywood Reporter, Emmerich remarked, "In a normal world we would have shot that movie in New York and Pennsylvania. We ended up shooting it in New Jersey because they had the best tax deal." This candid admission from a seasoned industry professional provides a powerful testament to the effectiveness of New Jersey’s financial incentives in influencing production location decisions.
National Trends: California Holds Strong, New York Stabilizes
While New Jersey celebrates its remarkable ascent, other traditional production powerhouses are navigating a more complex landscape. California, the undisputed heavyweight of the U.S. film industry, maintained its top position in terms of production spend, raking in $1.48 billion in the first quarter. This figure represents a modest 2 percent increase year-over-year. However, this financial resilience was accompanied by a significant 14 percent decline in the total number of filming projects, as indicated by ProdPro’s data.
This divergence between production spend and filming count in California suggests a shift towards larger, more high-value projects. The state has been actively bolstering its appeal through its robust tax incentive program, which was significantly enhanced last year with a doubling of the annual allocation to $750 million by Governor Gavin Newsom. The California Film Commission has been employing an aggressive strategy to attract projects from other regions and to encourage studios to center narratives around the state’s iconic locations. Recent beneficiaries of these substantial tax breaks include a Snoop Dogg biopic filmed in Los Angeles, a Baywatch revival shot at Venice Beach, and an Ang Lee-directed film set during the Gold Rush, which utilized locations near Sacramento.
New York, a perennial rival to California in the production arena, secured the second position with its production spend remaining largely unchanged year-over-year. Similar to California, however, the Empire State experienced a 14 percent decrease in its filming count, indicating a comparable trend of fewer, but potentially more lucrative, projects.
Emerging Markets Face Headwinds, Traditional Hubs Recoup
Beyond the top contenders, other states are experiencing mixed fortunes. Illinois, home to the popular NBC Chicago procedural franchise and FX’s critically acclaimed The Bear, reported flat filming counts for the quarter and a slight uptick in production spend. The state’s film office announced in March that its full-year film production expenditure reached an "all-time high" of $703 million in 2025, a notable increase from the pre-pandemic figure of $560 million in 2019. This sustained growth suggests a strong foundation for production activity, driven by established television series.
In contrast, New Mexico and Georgia, states that have cultivated a reputation as burgeoning hubs for major features and television series in recent years, encountered significant setbacks. Both experienced notable declines in their filming counts and production expenditures at the beginning of 2026. This downturn has led some major soundstage operators to observe a discernible trend of features migrating back to more traditional production centers over the past year.
Victor Coleman, CEO of Hudson Pacific, which owns the Netflix-occupied Sunset Studios, articulated this observation at a Citi conference in Miami. He noted a rise in production within Los Angeles and New York, coinciding with a "downfall of other markets like Albuquerque, New Mexico, New Orleans, Louisiana, Atlanta, Georgia and a little bit of Chicago and Illinois." Coleman further elaborated that these other markets are currently "much more depressed," and that the enhanced tax credits in both Los Angeles and New York have demonstrably influenced the production flow.
A Broader Industry Snapshot: Feature Film Decline, TV Resilience
The granular data from New Jersey and other states paints a broader picture of the U.S. film and television production industry’s performance in the first quarter of the year. ProdPro’s overall analysis reveals a 10 percent decrease in the national filming count. Despite this decline in volume, production spend saw a marginal increase of 1 percent, suggesting a recalibration of project types and budgets.
The primary driver of the overall decrease in filming count was the feature film sector, which experienced a substantial decline of 21 percent. This indicates a potential slowdown in the development and production of new motion pictures. Conversely, the television episodic sector demonstrated resilience, with activity increasing by 4 percent. This sustained demand for television series, particularly in the streaming era, appears to be a crucial stabilizing force for the industry, as evidenced by New Jersey’s surge in this category.
Analyzing the Implications: A Shifting Production Paradigm
The divergence in production activity across the United States signifies a dynamic and evolving industry landscape. New Jersey’s triumph is a clear demonstration of the power of strategic investment in tax incentives and infrastructure development. The state’s proactive approach, coupled with its geographic proximity to major media markets and a growing talent pool, has positioned it as an attractive alternative for productions seeking cost-effectiveness and logistical advantages.
The trends observed in California and New York suggest a continued consolidation of production in established hubs, albeit with a focus on high-value projects that can leverage substantial tax benefits. The significant increases in tax incentives in these states appear to be a deliberate strategy to retain and attract productions that might otherwise seek out more affordable locations.
The challenges faced by markets like New Mexico and Georgia highlight the competitive nature of the production industry. While these states have made significant strides in recent years, they may need to re-evaluate their strategies to remain competitive in the face of aggressive incentives and the gravitational pull of traditional production centers. The observed trend of features returning to established hubs, as noted by industry executives, underscores the enduring advantages of established infrastructure, extensive vendor networks, and seasoned crews that are readily available in locations like Los Angeles and New York.
The contrasting performance of feature films and television series also offers valuable insights. The robust growth in episodic television production suggests that the streaming revolution continues to fuel demand for content, providing a consistent pipeline of work for studios and crews. The decline in feature film production, however, may indicate a more cautious approach by studios in greenlighting new projects, potentially influenced by evolving audience consumption patterns and the economic realities of the theatrical release model.
Ultimately, the first quarter of 2026 presents a complex picture of the U.S. film and television production industry. While a national slowdown in filming volume is evident, the rise of New Jersey and the continued strength of traditional hubs like California and New York demonstrate the industry’s adaptability and the diverse strategies employed to navigate its ever-changing terrain. The long-term implications of these trends will depend on the sustained effectiveness of state-level incentives, the continued innovation in production technology, and the evolving demands of global audiences for both cinematic and serialized content. The unfolding narrative of "Hollywood East" in New Jersey serves as a compelling case study of how strategic planning and investment can reshape the geography of entertainment production.
