ABCs

“American Idol” is packing up its stars after 25 years in Hollywood.

In the latest blow to Los Angeles film production, ABC’s long-running program will move its upcoming season to the Atlanta area, according to Fremantle, which produces the show with 19 Entertainment, owned by Sony Pictures Television.

Fremantle declined to comment further.

The move comes as Los Angeles’ production levels have tumbled, prompting concern from film workers, union leaders and elected officials who are scrambling to address the crisis. California, despite boosting its tax incentive program, has been struggling to compete against other states that offer more lucrative credits.

TV production activity in the L.A. region was down 27% in the second quarter compared with the same period a year ago, largely because of fewer reality TV shoots, according to the nonprofit FilmLA.

Earlier this year, another broadcast TV stalwart, Fox’s “The Masked Singer,” made plans to vacate its space on the Fox lot on West Pico Boulevard in Los Angeles and head to New Jersey, also in search of more lucrative tax credits. Another ABC hit, “Shark Tank,” also is relocating to Atlanta from its longtime home base on Sony’s Culver City lot.

“American Idol” has been a local economic engine since launching on Fox in 2002. For years, the show ranked as the No. 1 show on TV and employed hundreds of workers each season as aspiring singers hoped for their big break.

The most recent season originated from Red Studios in Hollywood.

Georgia offers generous tax incentives, including up to a 30% tax credit for reality television productions that spend at least $500,000 in the state. Unlike California, Georgia’s tax program allows compensation for actors and other so-called above-the-line workers to be included.

Like California, Georgia has been grappling with lower production levels. For more than a decade, its soundstages attracted colossal movie productions, but the region was dealt a blow when the Walt Disney Co. recently shifted production of its Marvel superhero films to facilities near London.

On Tuesday, a bipartisan coalition of lawmakers, the Motion Picture Assn., industry unions, Hollywood special ambassador Jon Voight and filmmaker Steven Paul made a pitch for a federal film and television tax credit to keep jobs in Hollywood and in the U.S. broadly.

Rep. Laura Friedman (D-Glendale) plans to introduce a bill into Congress as early as this month in collaboration with Rep. Brian Jack (R-Ga.), who represents a district southwest of Atlanta. The MPA released a study estimating a federal tax credit could add 143,000 film and TV jobs.

This year, in particular, has seen big swings as the California Film and TV Tax Credit Program expanded eligibility to include competition shows.

Large-scale competition shows are eligible under the state’s incentive program if they have a minimum budget of $1 million per episode. The credit, however, does not include traditional reality shows, game shows, talk shows or docu-follow television programs.

Changes in California’s formula resulted in a jump to 676 shoot days in the second quarter, compared with 463 shoot days during the first three months of the year. Nonetheless, this year’s April-June quarter still reflected an almost 40% decline when compared with the same time last year.

FilmLA said that over the last five years, reality productions have plummeted nearly 63%.

ABC in late July announced “American Idol” was returning, marking its 10th season on the Walt Disney Co. network. Producers are auditioning potential contestants this week during stops in Georgia, North Carolina and South Carolina.

ABC declined to comment on the move.

Ryan Seacrest has long hosted the show, which last season featured Lionel Richie, Luke Bryan and Carrie Underwood, a previous “American Idol” champion, as the celebrity judges.

Deadline first reported the planned move to Georgia.

Game shows are also leaving L.A.

A growing number of programs long based around Hollywood and New York have headed across the ocean to Ireland and Britain to take advantage of tax credits that bring down the cost of production as broadcast network executives contend with shrinking audiences and lower profit margins.

Fox currently has several prime-time game shows produced overseas, including “The Floor,” “Celebrity Name That Tune” and “Beat Shazam.

Staff writer Stephen Battaglio contributed to this report.

The Federal Communications Commission has asked a judge to toss out ABC’s 1st Amendment lawsuit, arguing that parent company Walt Disney Co. is wrongly attempting to short-circuit the agency’s review into whether the broadcaster has violated the law.

The commission, in court documents, maintains ABC’s lawsuit was premature because regulators simply were in the process of reviewing whether ABC has served the public interest in operating its eight television stations. No final determination has been reached, the FCC argued.

FCC Chairman Brendan Carr made the rare move last spring to call for an early review of ABC’s licenses as part of his yearlong look at whether Disney’s diversity and inclusion programs violate anti-discrimination laws.

The Disney-owned station licenses were not set to expire for several years. For example, the license for KABC-TV Channel 7 in Los Angeles extends to 2030.

But the FCC launched the probe a day after President Trump complained about ABC late night comedian Jimmy Kimmel over a joke that upset First Lady Melania Trump.

ABC has taken an aggressive stance, arguing the FCC is wielding its enforcement powers to punish the network after Trump repeatedly agitated to have ABC’s licenses revoked. ABC maintains the FCC’s enforcement action is an attempt to quell the network’s free speech, in violation of the 1st Amendment. It asked a federal judge to issue a temporary restraining order and injunction to halt the FCC’s early station review.

ABC also is fighting an FCC review into whether its daytime talk show, “The View,” should be entitled to an exemption from the so-called equal-time rule for political candidates who appear as guests.

Disney’s lawsuit has enormous 1st Amendment implications.

ABC is the first major broadcaster to challenge the FCC’s enforcement actions since Trump returned to power, joining a small handful of news organizations, including the Associated Press and the Wall Street Journal, that have pushed back against the president’s efforts to bully outlets he dislikes.

In late December, Trump wrote on social media: “If Network NEWSCASTS, and their Late Night Shows are almost 100% negative to President Donald J. Trump, MAGA, and the Republican Party, shouldn’t their very valuable Broadcast Licenses be terminated? I say YES!”

ABC, which did not comment Friday, argued the FCC’s review is “extraordinarily early” and “that timing underscores the Commission’s true purpose: coercing and retaliating against a network that refuses to bow to the Administration’s demands.”

The FCC has scoffed at the broadcaster’s arguments.

“Disney filed a meritless lawsuit in an effort to stop the FCC’s ongoing investigation into allegations that Disney violated the law,” an FCC spokesperson said in a statement. “The FCC has developed a voluminous record, and it will continue to follow the facts and the law wherever they lead.”

The government filed its motion Thursday in Washington. The 46-page document was filed by U.S. Atty. Jeanine Pirro and signed by Assistant U.S. Atty. Dimitar P. Georgiev on behalf of the FCC.

Disney was “not content to let the Commission’s ordinary investigative processes (and, if needed, ordinary processes of judicial review) run their course. They instead ask this Court to halt the license renewal proceeding in its tracks by issuing a preliminary injunction,” the FCC said.

U.S. District Judge Loren L. AliKhan has scheduled an Oct. 6 hearing.

Disney has argued the FCC has gone well beyond an examination of its internal hiring practices — the original purpose of the agency’s review.

But, in its motion, the FCC faulted Disney’s handling of the matter, saying “Disney’s responses to Commission information requests were deficient and nonresponsive,” prompting the agency to escalate the dispute.

In late April, Carr directed the FCC Media Bureau to force ABC to apply for renewal of their licenses early.

“The Commission’s Chairman has repeatedly emphasized that, although the allegations against Disney are serious, he and the agency remain ‘open-minded,’ have ‘not made a decision,’ and are ‘going to follow the facts and the law wherever they [lead],’ ” according to the motion.

The FCC also argued Disney picked the wrong court because Congress stipulated that any review of commission orders should be heard by an appeals court.

If ABC lost its licenses, it would hobble the network by forcing its largest stations off the air. Other ABC stations at risk include those in San Francisco, Fresno, Houston, Philadelphia and New York.

KABC-TV Channel 7 is owned by Disney in Glendale.

(Gina Ferazzi/Los Angeles Times)

Trump on Sunday called for the FCC to “rebuke or punish” NBC’s “Meet the Press” anchor Kristen Welker after she pointed out that the president has had mixed success in endorsing political candidates in this election season.

The FCC also has an open investigation against NBC owner Comcast, also looking at the Philadelphia company’s diversity and hiring practices. The FCC has not ruled out calling NBC-owned station licenses in for an early review as well.

Sept. 4 (UPI) — The Federal Communications Commission asked a federal court to dismiss a lawsuit from ABC claiming the commission was curbing its right to free speech.

The Walt Disney Company and its subsidiary ABC sued the FCC on Aug. 18 to block an early license renewal from the agency, claiming the Trump administration is attacking the company for content it doesn’t like.

The FCC argued in its motion that the lawsuit is premature because the agency hadn’t yet tried to remove the licenses from eight local stations that ABC owns. In April, the FCC called for an early review of the licenses, an unusual move. None of the licenses were up for renewal for several years.

The FCC claims it asked for the early review because of ABC’s response investigation into the company’s diversity, equity and inclusion hiring policies. But the review came right after President Donald Trump told ABC to fire Jimmy Kimmel after a joke about First Lady Melania Trump.

The eight stations with their licenses are in jeopardy cover New York, Los Angeles, Chicago, Philadelphia, Houston, San Francisco, Raleigh-Durham, N.C., and Fresno, Calif. They renew their licenses every eight years and are almost never revoked. The FCC hasn’t filed an early-renewal order in decades.

“This [lawsuit] would only hobble the Commission’s efforts to investigate and resolve serious allegations that Disney has engaged in unlawful discrimination, and from otherwise ensuring that Disney’s stations are serving the public interest,” the FCC wrote in its filing. “Plaintiffs, in return, would only free themselves from the burdens of proving their case in administrative proceedings.”

“They have shown (at most) minimal and self-inflicted effects on speech, and no harms that could justify” blocking the agency’s moves, the FCC’s document said.

ABC had filed for an emergency stay of the FCC’s activity, arguing it was using the regulatory process to suppress its right to free speech.

ABC in its filing said that President Donald Trump is sending a “message to every media company in the country — that they should “tell only the stories the Administration deems favorable, or face the coercive machinery of the federal government.”

“In such a world, the press could in no way be described as free,” ABC wrote. “The FCC Chairman [Brendan Carr] has left little doubt that this is his goal.”

Judge Loren L. AliKhan scheduled a hearing for the week of Oct. 5.