“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.
Evelina Fernández’s “Antigone: In the Language of Kings” receives a theatrically entrancing staging at the Getty Villa’s Outdoor Theater in a production co-produced with Latino Theater Company.
The adaptation resets Sophocles’ tragedy to Aztec culture in a transposition that is both visually and musically enlivening. If the drama is oversimplified, it nonetheless makes for a gripping spectacle.
It’s not easy to find analogies that can reanimate the importance of burial rites to a modern audience. The production’s creative team, led by the inexhaustibly inventive director José Luis Valenzuela, returns us to a world where the dead are owed sacred duties and the living are fearful to renege on this basic human responsibility.
The incense-filled production — conducted in English, Spanish and Nahuatl (the language of the Aztecs), with English and Spanish supertitles — proceeds like a pageant. Headdress-clad warriors clash on the battlefield. A masked chorus, moving with the coordination of a Broadway musical ensemble, gives voice to the anxiety and grief of the collective. A statuesque figure of death, trailing black fabric, sweeps up the casualties of war with the efficiency of a human vacuum.
In Sophocles, Antigone, Oedipus’ headstrong daughter, defies the edict issued by her uncle Creon, the newly deputized king, declaring that her slain brother Polynices is an enemy of the state and therefore ineligible for burial. For Antigone this is an imposition of political power over divine law, and she puts her life on the line to uphold her obligation to her family and faith.
The ensemble of “Antigone: In the Language of Kings” at the Getty Villa Museum Outdoor Classical Theater.
The German philosopher Hegel considered Sophocles’ “Antigone” the high-water mark of tragedy for the way it dramatizes the collision between two equally justified moral positions. Creon, representing the claims of the polis over the clan, cannot be dismissed outright. Nor can Antigone, whose all-consuming identification with her cause renders her indifferent to other obligations, be adopted as a user-friendly hero.
Tragedy arises from the one-sidedness of their claims. Antigone loses her life and Creon, for all intents and purposes, destroys his own, suffering the deaths of his most cherished loved ones.
Hegel’s reading of “Antigone” illustrates his thesis-antithesis-synthesis view of dialectical progress. Sophocles, it can be surmised from the other plays in his Oedipus cycle, likely conceived “Antigone” with a larger metaphysical design. But even if Hegel’s interpretation would have seemed off the mark to him, Antigone and Creon are too complex to reduce to a schematic argument.
Fernández simplifies these antagonists. Her Antíkona (a formidable Esperanza América) reveals her softer side even when rejecting her sister, Ixmene (Alexis B. Santiago), for not having the courage to zealously join her fight.
Tlahtoani Klion (Cástulo Guerra), Emperor of Tenochtitlan, is a ruler so intoxicated with his own authority that he’s clearly courting rebuke from the gods. It’s only a matter of time before his hubris is slapped down.
The acting is theatrically robust, though not always subtle. I wondered if ambiguity had been outlawed along with the funeral rites of Antíkona’s warrior brother Polynices. The bold clarity of the performances was energizing, but the wailing sometimes sounded like parody grief.
The outsize nature of the production invites overacting. And Ric Salinas, who plays Chachalacani, humorously obliges, bringing his Culture Clash vaudeville skills to the role of the sentry who’s caught between the rock of Klion’s tyranny and his fellow feeling for Antíkona’s sympathetic cause.
Strong performances are elicited from José Eduardo Moreno, who plays Klion’s son Hemon, Antíkona’s fiancé, and Zilah Mendoza, who plays Cihuatlahtoani Euridice, Klion’s wife. Their portrayals, mixing ferocious strength with stark vulnerability, make the tragedy’s pileup of bodies at the end all the more piercing.
The ensemble of “Antigone: In the Language of Kings” at the Getty Villa Museum Outdoor Classical Theater.
América’s Antíkona is as unyielding as any Antigone I’ve seen. It’s a commanding portrayal, but I wish the production didn’t shrink from its protagonist’s fierceness. The obdurate side of the character is lessened with a gesture Antíkona bestows on Ixmene — a reassurance that even though she’s a revolutionary, she’s still an affectionate sister.
Sophocles is made of harsher stuff. Fernández’s adaptation is anxious to turn tragedy into a sermon, offering theatergoers moral solace where Sophocles leaves his audience in a contemplative state of stunned silence.
But the staging makes up for the dramatic shortfall. Valenzuela masterly orchestrates the mise-en-scène. The majestic costumes of Catarina Copelli, invoking a rich brocaded world on the brink of disappearance, might be the real superstar.
François-Pierre Couture’s scenic design is mesmerizing without ever being overbearing. “Lee” Xinyuan Li’s lighting heightens the sense of theatrical foreboding. Yee Eun Nam’s projections inject into this transient world a welcome subtlety.
Urbanie Lucero’s choreography and movement direction maintain the production’s graceful poise. The musicians, discreetly performing at the back of the stage under the guidance of Mesoamerican instruments director Christopher García, charge the air with percussive Indigenous wonder.
“Antigone: In the Language of Kings” marks the Getty Villa’s 20th anniversary of reinventing classical tragedy for our time. This gorgeous staging makes me ardently wish that the theater extends the tradition for at least another 20 years.
Actor and playwright Ellen McLaughlin, who originated the role of the Angel in Tony Kushner’s “Angels in America,” has put her own modern spin on ancient Greek dramas. Her “Helen,” a satirical reworking of Euripides’ tragicomedy and the eternal beauty myth, ought to be better known.
McLaughlin’s modern verse “translation” of Shakespeare’s “Pericles” is now receiving its West Coast premiere at Boston Court Pasadena. I’m traditionally more resistant to playwrights fiddling around with Shakespeare than I am with them updating Greek tragedy. Making Shakespeare’s plays accessible is a noble goal, but there are other ways to go about this beyond modernizing the text and diluting its lyrical beauty and nuance.
When actors understand what they’re saying, audiences tend to catch their characters’ drift while absorbing poetry that’s still at the root of the English language. But “Pericles” isn’t a play that should raise purist hackles. There is an authorship question. The first two acts and the final three may have been written by different writers. There’s an assumption that the second half is Shakespeare’s, but scholars continue to quarrel over attribution.
Julanne Chidi Hill, Desiree Mee Jung, Adam J. Smith, Joel Swetow (center), Rio Rasch, Nicole Javier and Alexander Matos in “Pericles” at Boston Court Pasadena.
(Brian Hashimoto)
Whatever the scholarly truth, it’s safe to say that “Pericles, Prince of Tyre,” to give this late romance its full title, is a patchwork. A strange epic yarn ignited by incest and attempted murder, the play is crammed with shipwrecks and miraculous rescues, devastating suffering and last-minute recoveries. I don’t think I’ve ever read the final act without shedding tears. That said, the play requires an extra-strength dose of willing suspension of disbelief.
McLaughlin’s most notable change concerns the frame of the play, which now unfolds in a disaster relief center. The conceit is that the worried and impatient evacuees amuse themselves with an impromptu performance of “Pericles,” of all unlikely theatrical works.
Outside, a monstrous storm rages. Inside, under flickering lights, a group of reluctant strangers is coaxed into acting out, in a converted gymnasium, a wild tale promising redemption from agonizing tragedy.
Randolph Thompson, Nicole Javier, Joel Swetow Adam J. Smith, Desiree Mee Jung and Rio Rasch in “Pericles” at Boston Court Pasadena.
(Brian Hashimoto)
The production, directed by Margaret Shigeko Starbuck, runs with the makeshift energy and comical freedom that this contextual shift allows. The characters aren’t professional actors, so it’s fine for them to wear their masks loosely. Flashlights illuminate darkened spaces. And props are improvised so that pool noodles are used for jousting and an earbud case serves as an engagement ring.
Joel Swetow, in the role of Gower, smoothly marshals the narrative, advancing the story from one delightful implausibility to the next, recapping what’s happened in the meantime and, when necessary, urging some of the more reluctant characters to stay with the performance. He also takes on the role of malevolent and benevolent kings, whom Pericles (an excellent Randolph Thompson) encounters on his tumultuous odyssey.
Most of the lead players lock into their roles once the performance of “Pericles,” the play within the adaptation, is underway. Thompson is particularly skilled at emotionally investing in his character’s plight even as the spontaneous production refuses to take itself too seriously.
Randolph Thompson, Joel Swetow and Nicole Javier in “Pericles” at Boston Court Pasadena.
(Brian Hashimoto)
A little meta-theatrical hamminess goes a long way, and actors in general have a tendency to overdo the joke. I appreciated the restraint that the cast imposes on itself without spoiling the fun. Nicole Javier who plays Thaisa, Pericles’ seemingly doomed wife, and Troy Leigh-Anne Johnson, who plays Marina, Pericles’ transcendentally good daughter born into sorrow, ensure that we care about the fate of a man who trails disaster behind him.
Julanne Chidi Hill, Desiree Mee Jung, Adam J. Smith and Alexander Matos adroitly flesh out the world of a play that sets virtue and vice in neon opposition. Their sporting way of differentiating their roles keep the staging brisk and lighthearted, qualities that are cleverly maintained by a design team that conjures ocean swells with a metallic-looking sheet, royal garb out of contemporary casual wear and a deadly threat from a pocket umbrella.
I missed the rhythms of Shakespeare’s music, though the most compelling poetic imagery in the adaptation is from the original. But the biggest sacrifice, one that is never fully restored unlike Pericles’ grievous losses, is the emotional weight of the play’s climax. It’s hard to allow yourself to fully believe in the incredible turn of events when the prevailing attitude is so emphatically tongue-in-cheek.
Adam J. Smith, Joel Swetow, Nicole Javier, Julanne Chidi Hill, Jamie Gallo, Randolph Thompson and Rio Rasch in “Pericles” at Boston Court Pasadena.
(Brian Hashimoto)
Johnson’s Marina performs with lovely gravitas, as do Javier’s Thaisa and Thompson’s Pericles. But the rollicking jollity that accompanies the final two acts, which includes the entrance of pirates and the abduction of Marina to a brothel, robs the ending of some of its pathos. A touch more solemnity would not have been amiss.
My eyes for once failed to moisten. But I was nonetheless relieved that Pericles’ happy ending is intact — a reassuring sight in our age of successive disasters.
‘Pericles’
Where: Boston Court Pasadena, 70 N. Mentor Ave., Pasadena
When: Check theater website for schedule. Ends Sept. 27
For years, Hollywood has talked about a federal film and television tax credit that could help the industry combat the growing number of productions fleeing overseas.
This week, the entertainment business got a glimmer of hope.
After more than a year of quiet work from California lawmakers, industry lobbyists and Hollywood unions to build a bipartisan coalition, President Trump endorsed the effort in a post on Truth Social, providing a major boost to the issue.
If passed, a federal incentive is expected to help draw some productions back to the Golden State, industry experts and advocates said. While it probably won’t immediately end Southern California’s production crisis — as many states now have established film hubs stocked with experienced crews and more generous tax breaks — an added federal credit could certainly help make California more competitive, they said.
“I will put our crews and our talent against any talent anywhere in the world,” said Rep. Laura Friedman (D-Glendale), a former producer who has been pushing for a national film tax credit. “If we have a level playing field upon which to shoot, where we are not much more expensive than other locations, productions will come back to Los Angeles.”
Trump’s Truth Social post came after a meeting with actor Jon Voight, one of the president’s designated Hollywood ambassadors who has played a key role in lobbying for the film industry and advocating for a federal tax credit. Though Trump has had frosty relations with Hollywood, particularly since many heavyweights did not support his presidential campaign, the industry’s jobs push aligns with his focus on re-shoring work, marking a rare moment of agreement.
Speaking to reporters in the Oval Office, Trump said Wednesday that he has done “a lot of work” in the last week to get something done on federal tax incentives for the film and television industry.
Trump said he has spoken to streaming giant Netflix; Ari Emanuel, chief executive of TKO Group Holdings Inc.; and “many others,” and that he is hopeful there will be a bipartisan push to revive productions in Hollywood with “big subsidies and big credits.”
“We don’t give anything and we should,” Trump said, referring to proposed tax breaks for U.S. productions. He added that he wants legislation to “match” what other countries are offering.
Now, lawmakers must hammer out the details of that legislation.
The bill will have a Republican sponsor from a state known for film and TV production, but Friedman declined to name the person, saying she was waiting for Republicans to make their internal decision about that lead lawmaker.
The bill is likely to go through the House Committee on Ways and Means. While exact provisions are still being negotiated, the expectation is that the credit will be stackable with states’ incentives — similar to how Canada’s tax credit works. A 20% federal tax credit on all labor costs — including for salaries of actors and crew members — is being discussed.
An earlier proposal from Sen. Adam Schiff (D-Calif.) had called for a baseline labor-based tax credit of 15% to 20%, in addition to bonus add-ons for indie productions among others, a Schiff spokesperson said.
Schiff has previously noted that 45% of all U.S. films and scripted TV shows were shot internationally last year, up from about 33% in 2022.
Having Schiff and Trump on the same side of this national tax credit is emblematic of the odd bedfellows the effort has gathered.
The Motion Picture Assn. studio lobbying group has released a statement backing the proposal, as have unions such as the Screen Actors Guild — American Federation of Television and Radio Artists, the Directors Guild of America and the International Alliance of Theatrical Stage Employees.
“I am in strong agreement with the President,” Schiff wrote Monday in a post on X. “Congress should immediately take up and pass a federal film tax incentive to bring back these good-paying jobs that we’ve lost to other countries.”
Production incentive experts say any national film tax credit will need to have a seamless process, one with minimal red tape.
One idea is to make the national production incentive an overlay that’s attached to states’ incentives, so the federal government doesn’t need a separate agency to vet the same criteria, which could slow the process, said Peter Marshall, managing principal of media insurance services at Epic, an insurance broker and consultant.
Parameters will also need to be clear, and the program easy to access, said Kathleen Thompson, vice president of tax incentives at payroll service Cast & Crew.
“There is an excitement and an energy and a hopefulness right now from the production community,” she said. “I’ve certainly gotten notes from clients, potential clients and industry colleagues that are very excited about the possibility of this passing and becoming a reality.”
“California is still the leader in production,” said Joe Chianese, senior vice president at Entertainment Partners, which tracks production incentives worldwide. “Producers would like to stay home if they can, but it boils down to the math.”
But even with the improvements to California’s film and TV tax credits, the state’s program still has limitations.
California has an annual funding cap of $750 million, has designated application windows and does allow the cost of actors’ salaries — a major driver of movie budgets — to be counted toward the tax breaks.
Beyond the program, the Golden State is just more expensive than other U.S. locales, and some filmmakers have criticized the red tape that makes shooting in L.A. more difficult.
“Can we be more competitive with a federal incentive? Absolutely,” Thompson said. “Can it completely turn the tide? I don’t know, but I hope so for our industry and our state.”
Industry stakeholders say they are hoping for quick movement on the issue, particularly since it will probably take more than a year after any tax credit is passed for producers to start making plans to move filming back to the U.S. due to lengthy production timelines for movies and TV shows.
“There is a ticking clock,” said Marshall of Epic. “If something isn’t done by the end of the year or in sight, there will be a further solidification of offshoring.”
For Peter Max-Muller, owner of The Ruby, a North Hollywood contemporary clothing rental business, the loss of film and TV shoots in L.A. is one of many threats his business faces, in addition to the use of AI production.
His sales typically mirror the production data from the nonprofit FilmLA, which recorded a 13% drop in shoot days in L.A. County in the second quarter over the same period a year ago.
The goal of a federal incentive, Max-Muller said, “is that we get that runaway production back.”
It’s why Friedman said she is pushing to get the tax credit legislation done as soon as possible.
“The film industry is deep in the identity of Los Angeles,” she said. “And it’s worth saving.”
Staff writer Ana Ceballos contributed to this report.
As spades went into the ground to signal the start of construction of the new Building 47 at Lockheed Martin’s Munitions Production Center in Troy, Alabama, it marked a significant development in accelerating production of the company’s Terminal High Altitude Area Defense interceptor, better known as THAAD. The expansion of factory space in Troy is a key element of the company’s $8-9-billion commitment to expand its munitions production footprint across the United States.
The Department of War’s Acquisition Transformation Strategy is part of a long-term plan that signals clear demand for critical munitions and it enables industry to confidently invest in facilities and workforce development, along with supply chain expansion and advanced manufacturing capabilities. In addition to enlarging the facility in Troy, Lockheed Martin is also growing its plant in Camden, Arkansas, which is another site that’s vital for building more munitions at a faster pace.
The THAAD production line in Troy, Alabama. Lockheed Martin
“My job is to interface and collaborate with the Department of War in achieving the call to action to produce these critical munitions, not only at speed but also at scale, multiplying the current production rates by two, three, or even four times the current rates,” Dan Nimblett, Lockheed Martin’s vice president for Munitions Acceleration Integration told TWZ on the ground in Troy during the groundbreaking event.
“Fundamentally what’s occurred changes how acquisition works [with] long term demand agreements. These long term procurement agreements enable Lockheed Martin and our supply base to make the necessary investments with confidence of the future demand. This allows us to make the investments not only in our people and our facilities, but in the technology necessary to build [these munitions] at a scale and a speed that’s relevant to the threat today,” explained Nimblett.
Lockheed Martin was the first company in the U.S. defense industry to announce a framework agreement with the DoW for munitions acceleration of high-demand missiles – initially tripling production capacity of the PAC-3 Missile Segment Enhancement (MSE) interceptor, followed by a second agreement to quadruple the production capacity of advanced THAAD interceptors. These two defensive missiles are cornerstones of a layered air and missile defense system, and both have been integrated together via Joint All-Domain Operations, including with the U.S. Army’s Integrated Air and Missile Defense Battle Command System (IBCS).
In response to the DoW’s call to action, the company has already invested more than $2 billion in its production facilities and in the related tooling, its key suppliers, and its workforce in order to accelerate production rates.
PAC-3 MSE in production in Camden, Arkansas. Lockheed Martin
Lockheed Martin plans to effectively double the factory footprint in Troy and dramatically increase the workforce. “We’re going to increase that [workforce] by drawing in college students, high school students, veterans, everybody’s welcome,” explains Jason Reynolds, vice president and general manager for integrated air and missile defense. “When they come to Lockheed Martin, they receive training, they get opportunity, and because these programs are on a ramp and in production in such high demand, this is where you come to start your career and you [can] work here for a long time.”
Lockheed Martin currently employs around 1,100 workers at its Camden site, but this is also growing. The Camden training center is seen as being critical in providing the swift increase in skilled operators needed to support this acceleration. “We work closely with the state of Arkansas as well on looking at what else we can do in the community and the infrastructure in that community to support people moving, hopefully into Camden as we ramp up,” says Reynolds.
“People here [in Troy] really know their work matters. It’s meaningful for both the community as well as for our national defense. So, we’re really proud of our employees and we’re on a growth trajectory. We’re hiring and we want as many qualified people to come join our team as possible.”
The Camden site is also accelerating its work on the long-range Precision Strike Missile (PrSM), which is also set to quadruple production over the next few years. Reynolds added that building missiles faster using automation and advanced manufacturing technologies, plus increasing the production line capacity, are some of the vital means for success.
Lockheed Martin is developing the new PAC-3 Adapted Capability Effector (ACE) to help build ammunition reserves faster. Lockheed Martin
“PAC-3 MSE and THAAD are the most capable air defense interceptors on the planet. They’re in extreme demand [and] we’re doing everything possible,” says Reynolds. “With PAC-3, we have been doubling that production over the last four years and now, like I said, we’re going to triple it. We’re working very carefully with our suppliers, with the U.S. government and with our partners and allies all around the world to get all the parts in and get them into factories like you see behind us today to assemble them and get them out to the warfighter as quickly as possible.”
Another way Lockheed Martin is accelerating the delivery of advanced air defense capabilities is the through the introduction this summer of the PAC-3 Adapted Capability Effector, or PAC-3 ACE. This new missile leverages the PAC-3 fire-control system and provides for full integration with the Patriot weapon suite.
The main differentiator of PAC-3 ACE is that it would be produced at less than half the unit cost of MSE and first flight could occur within 18 months. A core part of the rapid fielding strategy is an international, joint-development model. Lockheed Martin is partnering with both American and European industry, sharing production lines, supply chains and expertise.
Lockheed Martin says PAC-3 ACE provides a “cost-effective, multi-threat solution.” The interceptor is engineered to engage a broad spectrum of air-breathing threats, cruise missiles, and both short and medium-range ballistic missiles. By offering a low-cost “kill” per-engagement, it is designed to address the current climate that demands deeper ammunition reserves without compromising on performance.
Inside A Growing Lockheed Martin Site That Is Key To Its Munitions Production Ramp
The keys to munitions acceleration
This year, Lockheed Martin has made significant progress in a series of production acceleration projects for munitions programs under its Missiles and Fire Control division. “I was supposed to retire last year. I’m here because this is the most exciting time in the 30 years I’ve been in this industry,” says Dan Nimblett. “These long-term agreements provide us the certainty to enable us to make these investments.”
“What recent conflicts have demonstrated is that Lockheed Martin and the American defense industrial base never lost the technological edge. The technology and the capability has always been there – we have the best systems in the world. We’ve proven that through real world performance.”
Nimblett explained that Lockheed Martin’s supply chain is following suit, and that they are all now investing in similar ways to ensure they meet the demand signals. “We’re evaluating how we produce and increase additive manufacturing and robotics. We’re also looking at how we develop, which I think is a fundamental part of getting capability into the warfighters’ hands at a speed and scale that’s relevant to the threat.”
A PrSM test firing during the missile’s development. Lockheed Martin
Having received Milestone C approval from the U.S. Army in July 2025, PrSM manufacturing has relied on a high level of automation. PrSM was engineered from the start for automated, robot-driven production – automating tasks once done by hand – and that early-stage streamlining is paying dividends as Lockheed Martin seeks to accelerate output.
“We have a lot of robotics built into our munitions production,” explains Gaylia Campbell, vice president, Tactical Missiles. “A lot of times we use robotics to help increase the safety of the assembly, like an explosive charge that has to be integrated into a munition, and we have a robotic arm that places that and tests the placement. We also robotically paint and coat [PrSM]. So, we have a lot of robotics already in Camden and that’s really going to help us with this ramp-up in production – the fact that so much of it is [already] automated.”
Campbell emphasizes that PrSM entered production with a mindset of acceleration. “We got PrSM through preliminary and critical design reviews, and into first flight in times roughly half of what it would normally have taken us. We’ve been amazingly successful on all these flights. Those early [test] flights went off one after the other during the COVID-19 pandemic, at a time when there were a lot of challenges for all of us in our daily lives, and yet we were able to continue to fly and prove the operational performance.”
Lockheed Martin is reshaping the munitions supply chain with an unprecedented slate of manufacturing initiatives that pull together new facilities, strategic partnerships, and workforce development. The company is also expanding a number of its other production facilities, such as a $60-million investment in its complex in Archbald, Pennsylvania, that will add 700 jobs in support of high‑priority programs including PrSM, THAAD, PAC‑3, and Apache sensors. In Orlando, Florida, three legacy paint bays have been merged into a high‑performance shop that can retool a work cell in hours rather than weeks, while Ocala’s new Progressive Work Smart Assembly Line has cut seeker and mission control unit build times by roughly 50 percent.
Production capacity for THAAD is expanding in Troy, Alabama. Lockheed Martin
A partnership with General Motors will bring high‑rate commercial manufacturing expertise into Lockheed Martin’s production processes, and the new Rapid Fielding Center in Grand Prairie, Texas, is tasked to reduce traditional manufacturing development timelines. What once took years of design, testing and tooling is aimed to be prototyped, fabricated and validated in a matter of months.
Echoing endorsement of the DoW’s initiative, Campbell underscores that knowing what the demand signal will be is a critical differentiator when it comes to production ramp-up. “We can plan for some of those really critical rare earth minerals that we need, the batteries for example in our munitions, we need certain rare earth minerals for that. We need to know the total demand signal and that means we can negotiate with the suppliers and guarantee that we have access. That can really help us accelerate.”
To support the wider munitions efforts Lockheed Martin is also investing in solid rocket motor development and production, as well as lower-tier parts that go into solid rocket motors. “We’re working with different suppliers to develop new sources of supply for solid rocket motors,” says Campbell. “We’re investigating heavily right now in designing and prototyping several motors that we plan to test and take to production, and that really will develop a whole new supply chain and will really be critical for all munitions production.”
Having a five-year contract instead of annual contracts allows the manufacturer to have far more buying power to secure sub-components for a far better price point. “I can go and invest. Invest in more capacity, invest in my supplier’s capacity,” explains Campbell.
“Production is all about velocity. Keeping the line moving and not having to stop because we don’t have a part. Being able to order bigger quantities of things up front is really huge when it comes to acceleration.”
August Wilson’s “Ma Rainey’s Black Bottom,” the first of his plays to reach Broadway, catapulted the author’s playwriting career.
It’s the only drama in Wilson’s 10-play American Century Cycle not set in Pittsburgh’s Hill District. But the series might never have come to fruition were it not for the way “Ma Rainey’s Black Bottom” heralded the emergence of a major new American dramatist.
Although it’s still one of his most produced works, “Ma Rainey’s Black Bottom” has the hallmarks of an early piece. Wilson discovers his playwriting voice in this play, but he’s still working out his approach to dramatic structure.
I wasn’t champing at the bit to see another production of “Ma Rainey’s,” but I’m glad I didn’t miss this latest Wilson revival at A Noise Within, directed by Gregg T. Daniel. Acted with breathtaking ensemble naturalness, the play seems lived in rather than performed.
Francis C. Edemobi, from left, Amber Liekhus and CJ Obilom in August Wilson’s “Ma Rainey’s Black Bottom” at A Noise Within.
(Craig Schwartz)
The voices of the characters come through as though we’re eavesdropping from a discreet distance on their banter and squabbles. There’s nothing more riveting on stage than the truth, and here we have human beings in all their flagrant, unadorned and seemingly irreconcilable complications.
Set in a Chicago recording studio in 1927, the play splits its focus between the title character, a fictitious re-creation of the great blues singer Ma Rainey engaged in a power struggle with her white industry overlords, and the exchanges of her sidemen, a quartet of Black men with markedly different ambitions and sensibilities.
Levee, the role magnificently played by Chadwick Boseman in George C. Wolfe‘s 2020 film adaptation, may have more of a claim on the protagonist role than even Ma Rainey, who’s the play’s thematic center. As she throws her diva weight around in defense of a talent born out of Black suffering, she crystallizes the racial politics that Wilson powerfully illuminates.
But Levee’s role is the most dynamic in the play. A trumpeter who wants to move the band in a more musically sophisticated direction, he’s written his own arrangement of the song “Ma Rainey’s Black Bottom” that they’ve come to the studio to record. But Ma Rainey insists on doing it her way, even if Levee’s version is more interesting from a jazz perspective.
Overcome with anger from a traumatic childhood in which he witnessed his mother being raped by a mob of white men, he can’t tolerate slights, big or small. And his fiery temper, igniting at every possible moment with his older and more accommodating bandmates, turns this snapshot of history into genuine tragedy.
Kai A. Ealy, from left, Alex Morris, Gerald C. Rivers and Jamar Gilbert in August Wilson’s “Ma Rainey’s Black Bottom” at A Noise Within.
(Craig Schwartz)
The bedraggled studio has been visually renovated with the wood-slatted elegance of Tesshi Nakagawa’s scenic design. Daniel’s production demands that we experience the play in a fresh light. The period is respected but never allowed to become stiff or artificial. This isn’t a waxwork staging.
Standing microphones, placed on different tiers of the set, never let us forget that Wilson was first and foremost a conductor of voices. He bestows on his characters arias, and Daniel’s cast delivers them as though the words were expressly made for these particular actors.
Jamar Gilbert’s Levee moves through the world as if it’s a battle zone, which of course for him it has been. Conflict has dogged him his entire life, and injustice is what he’s come to expect. His focus is on himself, his music, his sensual pleasures and his determination not to be anyone’s victim. He takes as much pride in the shine of his new shoes as he does in the flirtatious giggle of a pretty woman.
Toledo (Gerald C. Rivers), the philosopher and historian of the group, tries to broaden Levee’s perspective, but the two men have a knack for getting under each other’s skin. Their antagonism is fueled in part by Levee’s immaturity, but there’s also a divide in their worldview: Levee wants society to change in time for him to make good while Toledo is more concerned with the collective spirit of his people.
Meanwhile, Slow Drag (Alex Morris) mostly wants to get on with the session, collect his money and enjoy life as it was meant to be enjoyed, with whiskey, a little reefer and good-looking women. Cutler (Kai A. Ealy) tries to be a moderating influence, but he winds up as exasperated by Levee as Toledo.
Alex Morris, from left, Amber Liekhus and Jamar Gilbert in August Wilson’s “Ma Rainey’s Black Bottom” at A Noise Within.
(Craig Schwartz)
The authenticity of the production encompasses the music. These actors don’t mime making music, as is often the case in revivals. They jam together, modestly but effectively enough to make their recording session real to us.
There’s nothing at all modest about Amber Liekhus’ musical talent. Indeed, Liekhus is the first actor who was able to convince me that the character of Ma Rainey really is a professional, jobbing singer. She doesn’t imitate being the mother of the blues, as her character is known. She earns the distinction through the wondrous depths of her soulful singing.
She refuses to be bulldozed by either Irvin (Bert Emmett), her manager, or Sturdyvant (Matt Foyer), the owner of the recording studio, knowing full well that they depend on her gift for their pile of money. Her insistence that Sylvester (Francis C. Edemobi), her nephew with a pronounced stutter, speaks the intro to her new record, is her way of asserting human control over corporate greed.
Liekhus’ Ma Rainey isn’t merely being temperamental, as Sturdyvant and Irvin assume. She’s using her limited leverage in whatever ways she can. There’s something touching about her imperiousness, a regal vulnerability that shines through even in her romantic interaction with Dussie Mae (CJ Obilom), whom Levee has his predatory eye on.
The honesty of the acting is so enlivening that I’m tempted to rank this production among the very best Wilson revivals I’ve seen. If there’s one slight misstep, it happens at the play’s violent climax. The moment makes perfect psychological and dramatic sense, but the confrontation needs a few more beats than Daniel allows.
But this encounter with “Ma Rainey” reveals that even early Wilson can, in the right hands, offer unadulterated playwriting greatness.
‘Ma Rainey’s Black Bottom’
Where: A Noise Within, 3352 E. Foothill Blvd., Pasadena
WASHINGTON — President Trump on Monday urged Congress to approve federal tax incentives aimed at reviving American film and television productions, saying Hollywood has been hollowed out by productions moving to Canada and other countries.
In a social media post, Trump said he met with actor Jon Voight, whom he has designated as “Hollywood Ambassador,” and concluded there is “no incentive” to work in Hollywood anymore and that it is “hurting California very badly.”
“Jon, and many others in the Industry, are suggesting we do Federal Tax Incentives in order to Make our Movie and Television Production Business GREAT AGAIN, Perhaps GREATER THAN EVER BEFORE!,” Trump said wrote on Truth Social.
Trump said meetings are already being set up to talk to lawmakers from both parties, noting that he wants to the discussions to be bipartisan, “especially since so much money is being lost in California, and other largely Blue States.”
“I am going to suggest that Republicans and Democrats get together, and immediately craft Legislation to save the Movie, Television and Entertainment Business in America,” he said.
There are few details about what these incentives would look like at this time, but Trump said “the amount of money spent” on tax breaks will be made up “tenfold by the money pouring into the Treasury’s coffers.”
Charles Rivkin, chairman and chief executive of the Motion Picture Assn., applauded Trump’s announcement, and, in a statement, added that “for over a century, American studios, casts, and crews have produced the films and series that the world wants to see.”
“A federal incentive,” Rivkin added, “would be a landmark step toward bringing more production to local communities in all 50 states, strengthening our nation’s economy, and making our country a more competitive place to produce, create, and tell great stories.”
Trump’s push comes as production has continued to shift overseas. Last year, 45% of all U.S. films and scripted television shows were shot internationally, up from about 33% in 2022, an issue that has worried California lawmakers such as Sen. Adam Schiff (D-Calif.).
California and other states have bolstered their production incentive programs, but Schiff has said in the past that it is not enough. He, too, has made the case for a federal tax credit.
“State programs cannot simply substitute for the kind of global, federal and competitive tax incentives that are needed to bring production back to American soil and stop its offshoring,” Schiff said at an event in March. “The urgency could not be greater.”
Trump has previously floated more aggressive measures, including a threat to impose tariffs on foreign-made films, but that idea did not gain traction.
Famous for its walls bearing scribbles and sketches left behind by patrons for over 60 years, El Batey, a bar in Old San Juan, is a Puerto Rican institution serving locals and tourists alike.
It was inside this famed establishment that filmmakers Lorraine Jones Molina and Cristian Carretero first met one night back in 2008. Since then, the two have joined forces in both life and art; they are a married couple, as well as parents and close collaborators on film projects.
Their first feature, “Esta Isla,” which is now available on VOD, made history as the first Puerto Rican film to win at the Independent Spirit Awards in February, taking home the John Cassavetes Award honoring a production made for under $1 million. At the 2025 Tribeca Film Festival, it received three prizes, including best new narrative director.
A politically charged, coming-of-age road-trip movie, “Esta Isla” follows Bebo (Zion Ortiz), a young man from the “caserios,” or projects, and Lola (Fabiola Victoria Brown), a well-off girl unhappy in her bubble of privilege. Violence forces Bebo to run away to the mountains. Lola tags along and together they come across a series of people who expand their worldview.
There’s a grounded, earthy lyricism to the images captured in “Esta Isla” that show a Puerto Rico that’s at once lush and entrancing but also undiscovered and unseen in cinema.
Fabiola Brown, pictured above, plays “Lola” in the new Puerto Rican film “Esta Isla.”
(Experimento Ludico)
Key to their professional success thus far, the filmmakers believe, is their loving personal bond. “We’re always together and talking about ideas. When we were working on ‘Esta Isla,’ it helped a lot to really dig deep and have long conversations about certain details and topics,” Carretero says during a recent video call. “We do mostly everything ourselves, just me and Lorrie. Sometimes I do camera, Lorrie does sound. We keep it pretty small.”
In 2010, Carretero and Jones Molina founded the production company called Experimento Lúdico in the western town of Mayagüez with the intent of decentralizing production on the island. Most opportunities for filmmaking are still based in the San Juan metropolitan area.
“I’m from Arecibo, from the north, and Cristian is from here, from Mayagüez. That’s part of who we are, and we want to tell these stories from here. It’s part of resisting. It feels like somebody has to do this,” Jones Molina says with a laugh, while sitting next to Carretero.
Lorraine Jones Molina and Cristian Carretero are the filmmakers behind the Puerto Rican road trip movie “Esta Isla.”
(Experimento Ludico)
When Carretero and Jones Molina first met, it was the documentary scene that sustained Puerto Rican cinema because those stories could be told with fewer resources. Karen Rossi’s 2007 environmentalist doc “Isla Chatarra,” for example, inspired Jones Molina.
She and Carretero later directed the 2016 medium-length doc “Seeds, Chronicles of the Earth,” about GMO experimentation on the island.
Most of the fiction production on the island then pertained to Hollywood films, such as “Pirates of the Caribbean: On Stranger Tides” (2011). In the 2010s, however, a string of fiction films, including Ari Maniel Cruz’s “Under My Nails” (2012) and “Before a Rooster Crows” (2016) and Ángel Manuel Soto’s “La Granja” (2015), pushed local storytelling forward.
And while those movies, just like “Esta Isla,” don’t address the socioeconomic issues facing Puerto Ricans didactically, their mere existence is in itself a statement. “Making Puerto Rican films in Puerto Rico is political,” says Jones Molina. “Talking about who we are, our identity, our culture, our history and saying that we are here and we exist is political.”
Residents in San Juan are currently experiencing a water crisis, and while the scarcity hasn’t directly affected Jones Molina and Carretero in Mayagüez, this problem is not new and has only turned more urgent in the aftermath of Hurricane Maria.
That’s why they deliberately wrote a scene in “Esta Isla” showing people getting water from a water truck.
“It’s crazy that we filmed that a couple of years ago to talk about that issue, and it’s just gotten worse,” says Carretero. “Now we have a drought, and you have to have water rationing. It’s something that is reflective of a bigger problem in the island: the neglect of the most important needs of the citizens.”
Puerto Rico’s status as a colony of the U.S., where the interests of corporations supersede the well-being of the local population, is the source of many of its challenges. And for a long time, even referring to Puerto Rico as a colony was taboo. A history of persecution on behalf of the U.S. government ingrained fear in Puerto Ricans.
“The FBI would keep ‘carpetas,’ or files with information on regular people, who were suspected of organizing or fighting for independence,” Carretero says. “People were being surveilled by the FBI, and they’d pay family members or people they knew to survey them.”
“Esta Isla” touches on the troubled relationship between Puerto Rico and the U.S. via Lola’s deceased father, who is a stand-in for Filiberto Ojeda Ríos, a Puerto Rican revolutionary and leader of the pro-independence militant group Los Macheteros. After years on the run, the FBI assassinated him in 2005. In the film, the character Cora (Teofilo Torres) lives in the mountains and works the land. The location used for his house carries great significance.
“The inside shots, with the bullet holes, and the windows, and the books, all of that is from Filiberto’s actual house where he was assassinated,” says Jones Molina. “When you go there, you see all those bullet holes; it’s heavy.”
To that, Carretero adds: “There’s an inferiority complex that the colony perpetuates, which has to do with not knowing where you come from. Once you know all these names and all the stories of women and men who’ve worked for the good of Puerto Rican people, here and in the States, it opens up this whole other space for inspiration that’s from our ancestors”
Carretero and Jones Molina found the core concept for “Esta Isla” on the first page of Octavio Paz’s seminal novel “The Labyrinth of Solitude,” where the Mexican author discusses adolescence as a moment in a person’s life where they open up to the world, while at the same time noting that societies themselves also go through a coming-of-age.
Zion Ortiz, pictured above, plays “Bebo” in the new Puerto Rican film “Esta Isla.”
(Experimento Ludico)
“Puerto Rico is still an evolving organism. It’s a country, a people and a culture still evolving,” Carretero explains. “We’re still trying to understand who we are and where we’re going. Are we a country? Are we not? Are we part of the U.S., or not? Are we Americanos, or somos latinoamericanos?Tantas preguntas that are still unresolved.”
Jones Molina continues: “There’s this idea that you have to just be grateful that you’re a part of the United States and don’t complain. But when you question that, and when you want to really look at why you love and care about your country and your culture and want to educate yourself, then you’re definitely going through this kind of coming-of-age.”
For this filmmaking couple, reaching maturity as artists forged in the complex context of a modern colony hinges on acknowledging their limitations and still persevering.
“We also wanted to show that you can make films with very little; you don’t have to wait for the perfect moment or all the different resources. That’s what we call tropical realism. Not only the style of the filmmaking, but it’s also the means, and how that matches your reality,” explains Carretero. “We cannot pretend to be something that we are not. We have to develop our own language, our own way of filming, our way of telling our stories.”
Weekly insights and analysis on the latest developments in military technology, strategy, and foreign policy.
The United Kingdom is clearing the way for Ukraine to locally assemble the Storm Shadow/SCALP cruise missile, adding another layer to Kyiv’s rapidly expanding long-range strike arsenal. Storm Shadow/SCALP was first used by Ukrainian forces years ago and became the weapon of choice for standoff strikes against high value targets. Since then, stockpiles of these missiles have dwindled, but Ukraine’s own defense industry has made large leaps in producing increasingly advanced standoff weapons, which will apparently include a version of Storm Shadow/SCALP in the future.
British Prime Minister Andy Burnham arrived in Kyiv today for his first overseas trip since taking office, bringing with him a significant new commitment to Ukraine’s long-range strike capabilities. The U.K. government has authorized defense contractor MBDA to release classified information relating to British-made components incorporated into the SCALP long-range cruise missile. The move is intended to allow France and Ukraine to establish local assembly lines for the weapon inside Ukraine.
We’re sharing technology with Ukraine that will enable them build Storm Shadow missiles on their own soil.
“We will stand with them for as long as it takes.” – Defence Minister @LukePollard this morning from Devonport on Ukrainian Independence Day.
SCALP is the French designation for the air-launched missile known in British service as Storm Shadow. The two variants share substantial French and British technology and are produced by MBDA. According to the U.K. Ministry of Defense, Storm Shadow has a range in excess of 300 nautical miles, although in its export configuration it has an officially stated range of around half that.
An infographic on the Storm Shadow missile prepared by the U.K. Ministry of Defense. (Note that the missile was never cleared for use by the F-35). Crown Copyright
The weapon is an air-launched, conventionally armed cruise missile designed for precision attacks against fixed targets well beyond the immediate battlefield. Its primary targets include command facilities, hardened infrastructure, and other high-value installations.
Storm Shadow/SCALP
The announcement removes a major technology-transfer barrier surrounding British-origin components in the Franco-British weapon, allowing the French-Ukrainian production project to move forward.
Ukraine is already heavily dependent on Western deliveries for some of its most capable long-range weapons, while European stocks of Storm Shadow and SCALP missiles have been depleted by years of procurement limitations and transfers to Kyiv.
Local production could eventually give Ukraine a new source of these weapons closer to the battlefield and reduce its dependence on foreign stockpiles.
The U.K. production line for Storm Shadow at the MBDA factory in Stevenage. Crown Copyright
At the same time, the Storm Shadow/SCALP project is only one part of a much broader Ukrainian effort to build a sustainable deep-strike capability.
Ukraine has spent the past several years rapidly expanding its domestic long-range strike industry, with long-range one-way attack drones currently forming the largest and most mature component of that arsenal. Ukrainian forces are now capable of launching large numbers of domestically produced strike drones against targets hundreds and, in some cases, more than a thousand kilometers from Ukraine. Relatively inexpensive one-way attack drones can be launched in mass and used to overwhelm air defenses, attack energy and industrial infrastructure, and impose a sustained cost on targets deep inside Russia.
Alongside those relatively inexpensive systems, Kyiv is pushing ahead with domestically developed cruise missiles intended to provide a substantially heavier payload and more sophisticated guidance and penetration capability. The most prominent example is the FP-5 Flamingo, developed by Ukrainian defense company Fire Point, while other indigenous cruise-missile programs are also progressing.
Video showing the launch of an FP-5 Flamingo cruise missile:
Випробувальний пуск ракети “Фламінго”
Ukraine is also moving into the ballistic-missile arena. Domestic ballistic-missile programs have progressed toward testing and deployment, with Ukrainian officials and industry working toward serial production of systems intended to extend the country’s ability to strike targets deep inside Russia. With their high speed and steep terminal trajectories, ballistic missiles provide a substantially different challenge to Russian air defenses.
Western-supplied systems such as Storm Shadow/SCALP and the Army Tactical Missile System (ATACMS) short-range ballistic missile have meanwhile provided Ukraine with critical combat experience and an immediate deep-strike capability while its domestic missile industry matures.
Debris from an ATACMS missile launched by Ukrainian forces is seen near the Russian city of Voronezh on November 19, 2025. Photo by Russian Defense Ministry/Handout/Anadolu via Getty Images Anadolu
Rather than simply replacing missiles consumed in previous campaigns, the planned Ukrainian production of Storm Shadow/SCALP is particularly significant because it could eventually give Kyiv another sophisticated cruise-missile type within an arsenal that is becoming increasingly indigenous.
A domestic assembly capability could provide Kyiv with greater control over production rates, sustainment, and replenishment while reducing the logistical burden associated with obtaining complete weapons from foreign stockpiles. Potentially, Ukraine might also have the option to adapt the missile according to its own requirements. This could include changes to the guidance system or warhead, and perhaps even adaptation for launch from the ground.
The limited availability of the Su-24M/MR Fencer swing-wing combat jets that currently launch Ukraine’s Storm Shadow/SCALP missiles are currently a limiting factor and there is no realistic means of replacing them. It was expected that Mirage 2000 fighters transferred to Ukraine by France would be modified to launch SCALP, but this has so far not been confirmed. Should Ukraine receive the French-made Rafales that it plans to, then SCALP compatibility would be provided from the outset.
A SCALP-EG long-range cruise missile under the wing of a Ukrainian Su-24. Ukrainian Ministry of Defense screencap
Maybe even more importantly, it would allow these weapons to be used however Ukraine wants, without geographical and target type restrictions that are currently dictated by whoever donates them. It could also result in critical technology transfer, including about low observable cruise missile design, that Ukraine can gestate and deploy into other programs. Finally, it’s possible this could even be a future export for the country, especially if it can produce a variant that is adaptable and economical.
It is unclear when locally built Storm Shadow/SCALP missiles will join Ukraine’s strike arsenal. However, establishing an industrial production line for a sophisticated cruise missile is a major undertaking, particularly inside a country that remains under sustained Russian missile and drone attacks.
As noted in the opening of this article, the United Kingdom supplied Storm Shadow missiles to Ukraine beginning in 2023, giving Kyiv a long-range precision-strike capability that was previously unavailable from most of its Western partners. Soon after, France committed to sending SCALP missiles, and Italy, another Storm Shadow operator, has similarly supplied the missiles to Ukraine.
The weapon has subsequently become one of the most important Western-supplied strike systems in Ukrainian service and has been used against some notably high-profile targets.
Storm Shadow/SCALP has been used against Russian military infrastructure, including targets far behind the front line. The weapon’s combination of range, low-observable design, and tandem penetrator warhead makes it particularly useful against hardened or otherwise heavily defended targets.
Speaking last Friday at Malmen Air Base in Sweden, during an event to celebrate the Swedish Air Force’s 100th anniversary, the commander of the Ukrainian Air Force, Lt. Gen. Anatolii Kryvonozhko, highlighted some of the key issues facing the service now in its conflict with Russia.
Among them was the urgent “need for asymmetric actions,” including effectors capable of striking deep beyond the front lines and into the heart of enemy territory.
“With the enemy having the prevailing in numbers, we need to have technology that can be smartly used, and this is how we can prevail,” Kryvonozhko said. “No matter how big your manpower is, if you don’t have innovative technology, you will not prevail. So innovative technology, smartly used, can be a factor for prevalence and domination in the battlefield.”
For Ukraine, local Storm Shadow/SCALP production would fit squarely into that asymmetric strategy, adding a proven, capable deep-strike weapon to an increasingly diverse arsenal while reducing reliance on increasingly strained Western missile stockpiles.
The U.K. decision to support Ukrainian Storm Shadow/SCALP production is separate from its own effort to develop a new generation of lower-cost long-range strike weapons for Ukraine.
The British government is pursuing that effort through Project Brakestop, intended to produce advanced, low-cost, long-range weapons without relying on U.S. components.
Industry has “risen to the challenge” of Project Brakestop, Armed Forces Minister Louise Sandher-Jones has said
Three UK-designed long-range strike systems undergo flight testing with the aim of delivering low-cost precision strikes against targets more than 500km away pic.twitter.com/mlD7jua4sG
The British prime minister’s visit to Ukraine comes at an especially tense point in U.K.-Russian relations.
Moscow has repeatedly warned Britain over its military support for Ukraine, including assistance connected to Ukrainian long-range strike operations. The Kremlin has now criticized Britain’s decision to facilitate Ukrainian Storm Shadow/SCALP production, accusing London of escalating the conflict and warning that Russia is tracking Ukrainian missile-production facilities.
Russia has also withdrawn its ambassador from London, further highlighting the deterioration in relations between the two countries.
Luke Pollard, the U.K. defense minister, told Times Radio today: “We’ve already seen Russian activities against the United Kingdom, we’ve seen them loitering over our critical undersea cables, we’ve seen cyberattacks on our systems … we’ve also seen them prosecute an illegal war against one of our close friends. So am I surprised that Russia doesn’t like people supporting Ukraine? No, I’m not. Will that stop us from supporting our friends in Ukraine? No.”
Burnham is in Kyiv on Ukraine’s Independence Day to meet President Volodymyr Zelenskyy and chair a meeting of the Coalition of the Willing, the multinational group supporting Ukraine.
The British prime minister has framed the visit as a reaffirmation of London’s long-term commitment to Ukraine, with the transfer of Storm Shadow/SCALP blueprints as tangible evidence of this.
The missile announcement aims to help Kyiv expand its ability to make, replenish, and diversify its long-range strike arsenal, as it works toward developing a deep-strike force capable of reaching far beyond the battlefield without relying entirely on foreign weapons transfers.
It was a television show tailor-made for Los Angeles: a highly anticipated Netflix crime drama about a team of ex-special forces operators who outsource their skills to criminals in the city.
The production was backed by a prominent indie studio and had a critically acclaimed lead actor attached. And with a budget of more than $100 million and a crew of 350, the series seemed like a shoo-in for California’s film tax and TV credit.
But last month, shortly before filming was set to begin, producers were stunned to learn the film didn’t make the cut based on a formula the state uses to rank projects by the number of jobs they produce and their spending levels. After two applications for a tax credit had been rejected, they opted to shoot the series in New Jersey, where it was much easier to qualify for film incentives.
“We were shocked,” said a producer on the project who declined to be identified because of the sensitivity of the matter. “This is the birthplace of entertainment. It shouldn’t be so hard to shoot here.”
Despite improvements to the state’s tax incentive program, Los Angeles and California continue to struggle to keep movies, television series and even game shows from fleeing elsewhere. Production levels have failed to bounce back since the pandemic and the labor strikes by writers and actors, and they remain at historic lows.
Film activity in the L.A. region plummeted in the second quarter of this year, with shoot days for feature films and TV productions falling 20% and 30%, respectively, compared with already anemic levels from a year ago, according to FilmLA.
The story of how L.A. steadily lost much of its homegrown industry to other locales is a tale of hubris, escalating costs, political inaction and fierce competition from states and countries hungry for a piece of the Hollywood pie. California eventually adopted a very limited film tax credit plan in 2009, but even then production had already gone elsewhere.
Filmmaker Jonathan Nolan, on the set of “Fallout,” has been at the forefront of efforts to keep Hollywood at the center of the entertainment industry.
(Lorenzo Sisti / Prime Video)
This account is based on interviews with more than a dozen producers, studio executives, lawmakers and film industry veterans.
Despite warning signs that runaway production was causing an exodus of talent and jobs, many took for granted that L.A. would remain the epicenter of film and television.
Film activity in Los Angeles has plummeted to historic lows, with devastating consequences for crews and vendors. This series examines how L.A. lost its dominant perch as a film and TV destination and what can be done to bring Hollywood back home.
“I’ve been around long enough … to realize that things kind of die slowly and then they die quickly,” said Jonathan Nolan, a writer, director and producer, whose credits include the HBO series “Westworld” and “Fallout” on Amazon.
Nolan, who championed efforts to get the state to expand its tax incentives, lamented that L.A. once “stood in for everywhere. Now L.A. doesn’t even stand in for itself.”
‘The X-Files’ and the birth of Hollywood North
Like the fall of Rome and the decline of Detroit, Hollywood’s spiral did not happen in a single day, but rather unfolded over decades.
Before World War II, Los Angeles’ production hegemony was uncontested. An abundance of sunny weather and a range of landscapes, along with highly skilled artisans, from set designers to scenic painters, re-created the entire world on Hollywood soundstages and backlots.
That began to change during the late 1940s and early 1950s when studios broke with tradition and filmed abroad, attracted by Europe’s cheap labor and the desire among directors for more realism in movies.
William Wyler’s 1953 classic “Roman Holiday,” starring Audrey Hepburn and Gregory Peck, was one of the first, shot entirely overseas on the streets of the Italian capital and at Cinecittà studios.
Still, as productions went on location, often for creative reasons, Hollywood remained the center of entertainment gravity.
“Roman Holiday,” starring Audrey Hepburn and Gregory Peck, was one of the first big American studio films to be shot entirely overseas.
(Paramount Pictures)
In 1993, when there were four broadcast networks, cable TV relied on set-top boxes and streamers were, well, party decorations, a relatively unknown television writer named Chris Carter began pre-production on a new supernatural drama series that he had created.
For the pilot’s opening scenes, he needed a forest, one that was dark and moody. There, a terrified teenage girl would be filmed fleeing before she was consumed by a blinding flash of light and then found dead, bearing unexplained marks on her body.
“It became clear that not only were there not great forests in the ‘zone,’” said Carter, referring to the 30-mile-zone (TMZ) around L.A. that producers try to shoot within to avoid mandatory union surcharges. “But there were better forests in Vancouver.”
As it happened, during the 14-day shoot, Carter, who was working with a tight budget, discovered that Vancouver supplied numerous benefits.
The grim weather naturally provided a spooky atmospheric backdrop while the city “beautifully doubled for almost any place in the U.S. without having to pretend too much,” he said.
Carter’s pilot became “The X-Files,” the wildly popular and groundbreaking 1990s TV series that ran for nine seasons (plus two revival seasons), redefined the science fiction genre and spawned two feature films.
The success of “The X-Files” propelled Vancouver’s reputation as “Hollywood North.”
(Associated Press)
“As David Duchovny said, ‘two weeks became five years,’” quipped Carter.
While other productions such as “Wiseguy” had filmed in British Columbia years earlier, “The X-Files” unintentionally cemented Vancouver’s reputation as “Hollywood North,” fueled by Canada’s favorable exchange rates, skilled crews, lower labor costs and, eventually, tax credits.
The show’s colossal success helped create the model still in play 33 years later for outsourcing movie and television production to regions where tax incentives are higher and production costs are lower.
“It was simply a choice I made for the location, not for the financial benefit,” said Carter. “It wasn’t part of my calculus, but it ended up being a fact of life.”
Throughout the 1990s a steady stream of TV shows and movies shot in Canada. The 1994 adaptation of “Little Women” starring Winona Ryder was largely filmed in Vancouver, with a stand-in for Orchard House, Louisa May Alcott’s home in Concord, Mass., built in a local forest.
But, at the time, few saw what was happening as an existential crisis in the making.
For one thing, L.A. was in the midst of a production boom, prompting the development of the$77-million Manhattan Beach Studios, a 22-acre production facility in 1996. (The studio is now fielding offers by its bank lenders after its owner, the real estate investment firm Hackman Capital Partners, defaulted on over $2 billion in mortgages on several studio facilities it had acquired in recent years.)
Losing the ‘golden goose’
Canada’s booming film business inspired other U.S. states to get in on the action. Louisiana became the first to pass a film tax incentive, enhancing it in 2002; New Mexico and Georgia followed with their own programs.
Helping to fuel the film tax credit frenzy was none other than the Motion Picture Assn. The Washington, D.C.-based advocacy group for the major film studios and streamers for years aggressively lobbied lawmakers and even governors in other states to adopt their own film programs.
Eventually, nearly 40 states and some 80 countries and territories were offering film incentives in the form of transferable tax credits, grants or rebates.
“Everybody thought, ‘We are Hollywood. Why do we have to do anything?,’” said Lori Balton, a top location manager, whose list of credits spans nearly 40 years and includes such films as “Heat” and “Once Upon a Time in … Hollywood.”
“They always thought that they had the golden goose. And it was going to keep laying eggs and instead, it packed up its bags and moved.”
Earlier this year, while speaking at Burbank City Hall chambers, Sen. Adam Schiff (D-Calif.) dropped some sobering data: 45% of all U.S. films and scripted television shows were shot abroad in 2025, up from 33% in 2022.
Like most filmmakers, Miles Millar would prefer to work in Los Angeles, where he lives, but he hasn’t done so for 25 years, since he was a co-producer and writer on the CBS action series “Martial Law.”
“It is not financially viable to shoot the kinds of shows we do here,” said Millar, whose work includes “Smallville” and “Beetlejuice Beetlejuice.”
It was too expensive to film in Los Angeles, so the Netflix hit “Wednesday” shot its first season in Romania before relocating the show to Ireland.
(Netflix)
When Millar and his “Wednesday” co-creator and co-showrunner Alfred Gough began pre-production on the first season of the Netflix hit series about five years ago, L.A. as a location wasn’t even discussed.
They settled on Romania. Tim Burton, “Wednesday’s” executive producer and primary director, “loved the idea,” said Millar, noting that the director was predisposed to its gloomy and gothic wonders, having once visited Dracula’s castle in a Transylvanian mountain village with rocker Alice Cooper.
“We built the whole town of Jericho and six standing sets at a huge scale. There was no way you could even begin to construct the level and scale of sets that we did, in L.A.,” he said. “We’re talking about the difference of tens of millions of dollars.”
Still, the former Eastern Bloc country had its challenges. The crew didn’t speak English and its promised tax rebates never materialized.
When “Wednesday” was picked up for a second season (it is now filming its third), the show moved to Ireland, where it received more than $23 million in tax credits last year, according to the country’s Tax and Customs office.
“The last thing I want to do is shoot thousands of miles away from my family for nine months, year after year,” Millar said. But it has come down to “where do we get the most bang for the buck?”
Outsourcing scores and VFX
Other critical components of filmmaking, including visual effects and musical scoring, have also been outsourced over several years.
L.A. was once home to 18 film scoring stages that could accommodate full symphony orchestras. Today only three remain, driven away partly by high labor costs and cheaper overseas competition.
Similarly, many visual effects studios have moved elsewhere. Vancouver alone has dozens of visual effects studios, including Sony Pictures Imageworks and a major branch of Industrial Light & Magic.
“We’ve allowed that piece of the market to leave,” said Marielle Abaunza, president of the California Post Alliance, an advocacy group backing a state bill offering post-production firms their own tax breaks, similar to what New York offers.
“For 16 years, places like New York have slowly been building up their talent, their facilities, their relationships with filmmakers and their relationships with studios,” Abaunza said.
Even as other states and foreign governments invested in their own film industries and began luring away productions from California, lawmakers in Sacramento were initially skeptical of giving tax breaks to producers. Some critics saw them as little more than a handout that diverted resources from more pressing needs such as healthcare and education.
“If you’re on the outside looking in, there is this false sense that everyone who works in Hollywood has to be rich whether you’re crew or not,” said Amy Baer, a producer and former Sony executive who now runs Artists Equity, Ben Affleck and Matt Damon’s production company.
As production losses mounted in L.A., a coalition of labor and industry groups lobbied then governor and actor Arnold Schwarzenegger to take action.
Schwarzenegger, a longtime champion of tax credits, was able to get a program passed as part of an economic stimulus provision of the state’s 2009 budget. It was dubbed “The Ugly Betty” bill, named after the ABC show that had relocated from L.A. to New York.
Though hailed as a significant step, the new film sweeteners had some key limitations. The pool of money was small — capped at $100 million annually over five years. And it couldn’t be applied to offset the cost of actors’ salaries, a key driver of budgets.
In reality, the program was too small and restrictive to compete with a growing crop of rivals that had larger tax breaks and fewer restrictions.
Chief among them was the United Kingdom, which soon began to attract a number of big-budget movies thanks to a hugely popular 25% cash rebate on production expenses, including money spent on actors’ salaries and other above-the-line costs.
In a paradigm-shifting move, Warner Bros. purchased Leavesden Studios outside of London in 2010, investing more than $160 million into the facility. Much of the blockbusters “Wonder Woman” and “Barbie” were filmed there.
Although the California program was tripled to $330 million annually starting in 2014, it did little to halt the continued exodus of film work. Marvel Studios began moving its production operations to Georgia, enticed by the state’s uncapped tax credits that could be used for actors’ salaries. Both “Black Panther” and “Avengers: Infinity War” were filmed largely at Trilith Studios in Fayetteville, Ga. Another historic town east of Atlanta attracted so many movies and TV shows it became known as “Hollywood of the South.” (Last year, Marvel shifted most of its operations to the U.K. in search of even bigger cost savings.)
Marvel Studios, which filmed blockbusters such as “Black Panther” in Georgia, has since shifted operations to the U.K.
(Film Frame / Marvel Studios)
While numerous studio facilities lay empty here, streamers and studios have built major production hubs outside of L.A. Though it still shoots dozens of productions in L.A., Netflix has spent billions to operate production hubs abroad while constructing massive facilities in places like New Jersey and New Mexico.
“Everyone kept saying, if we have more tax credits, then at least we’ll be able to bring production back,” said Monica Levinson, a veteran producer who has worked on FX’s “Love Story” and the movie “Zoolander.” “Well, that didn’t happen. And the crews got better and better out of the country.”
Rising costs
As the rest of the world courted Hollywood, L.A. did little to help itself.
Despite recent improvements to streamline and reduce costs, the city’s film approval system remains a maze of multi-layered permitting, fees and complex logistics, location managers say. The Greater L.A. area has more than 100 jurisdictions, many of which have their own rules, regulations and permitting fees for filming.
Filming in L.A. also has become more expensive compared with other film hubs due in part to higher labor costs and mandatory staffing requirements, such as paid on-set fire safety monitors, and traffic and parking controls.
What’s more, unlike New York, the city doesn’t have its own film commissioner who could advocate for the industry.
An L.A. commissioner would be “somebody that is beating the drum 365 days a year that is not aligned with a special interest other than creating more production in California, which makes our state and our people prosperous,” said Scott Budnick, a producer on the wildly successful “The Hangover” franchise who lobbied for the state’s enhanced film tax credits.
For a time, the loss of market share was masked by a surge in local TV shoots as studios spent heavily to supply content to their new streaming platforms.
But the pandemic and back-to-back strikes by actors and writers roiled the industry. Studios laid off thousands, cut back on films slates and slashed TV spending and it never rebounded. Film incentives became even more critical for those deciding where to shoot.
By the time Gov. Gavin Newsom announced a plan in October 2024 to more than double funding for the film and TV tax credit program, to $750 million annually (closer to New York’s annual allocation of $800 million, although it retained annual caps and doesn’t count actors’ salaries), the industry outlook was bleak.
“I think there was a tipping point between COVID and the strikes that shone a very bright light on the fact that the majority of production had fled the state,” said Baer, the producer.
There are a few bright spots, however.
The critically acclaimed HBO hit medical drama “The Pitt” is filmed almost entirely on the Warner Bros. lot in Burbank, and has injected tens of millions into the local economy while sustaining nearly 1,000 jobs. Two other Emmy-award winning series, Apple TV’s “The Studio” and HBO’s “Hacks,” which just ended, also shot locally.
At Jonathan Nolan‘s urging, Amazon agreed to relocate his post-apocalyptic series “Fallout” to Los Angeles in 2024 after filming its first season in New York, Utah and Namibia. The show received $67 million in California tax credits for its second and third seasons.
Walton Goggins plays the dual role of Cooper Howard and The Ghoul in Amazon’s post-apocalyptic series “Fallout.”
(Courtesy of Prime Video)
“We want to keep shooting here,” Nolan said. “I don’t want to pack my kids off to the back end of beyond just for the privilege of being able to continue doing what I’m doing.”
To build support for the expanded credits, Nolan last year allowed state lawmakers to visit the sets of “Fallout,” including at the Melody Ranch in Santa Clarita.
“I think they were struck by just how big an endeavor this is,” said Nolan, whose brother Christopher is director of “The Odyssey,” (The epic film was shot across Greece, Sicily and several other countries.) “These are hundreds or thousands of jobs on one production alone, hundreds of millions of dollars being put in the local economy.”
Nolan and others in the industry admit the California program is imperfect.
Mayor Karen Bass, who backed the tax credit program in 2009 when she was speaker of the California Assembly, has touted the success of the expanded incentives, saying they’ve created “thousands of good-paying union jobs … right here in Los Angeles, bringing direct investment to our community.”
Since the expanded program went into effect last July, 179 projects have generated $7.2 billion in direct production spending, bringing nearly 38,000 cast and crew jobs to the state, according to the California Film Commission.
“We remain committed to supporting the entertainment industry here and feel optimistic and energized by the response from the community to the program’s modernization and enhancements,” Colleen Bell, the commission’s executive director, said in a statement.
Bass, who is up for reelection, said she would redouble efforts to remove tax credit caps and further reduce film permitting fees “because this industry is core to the history, culture and economic power of Los Angeles.”
The question, however, is whether L.A. is still core to the film industry.
Earlier this year, writer and director Ryan Coogler, who won an Oscar for his “Sinners” screenplay, began filming the pilot for a reboot of “The X-Files.”
During the “Happy Sad Confused” podcast, Coogler called the drama “one of the most beautiful American television shows ever made” and assured fans that while he planned to put his own stamp on the seminal series, his version would pay homage to the original.
“We intend on having both monsters of the week and also the overarching conspiracy,” he said.
And like the original series, it was shot in Vancouver.
Final voting for the 78th Emmys is now underway, which means The Envelope is bidding adieu to the TV awards season — and already gearing up for the film one.
This year, I’ll be in Venice while columnist Glenn Whipp heads to Telluride and movies editor Joshua Rothkopf leads our team at the Toronto International Film Festival. You can catch a daily roundup of our TIFF coverage, including exclusive photo and video highlights from our studio activation, right here in the Envelope Sept. 11-14.
Until then, enjoy highlights from this week’s issue below, and Glenn’s last newsletter of Emmy season on Friday.
Digital cover: Dakota Fanning
(David Urbanke / For The Times)
This week’s digital coverline is inspired by Dakota Fanning’s busy, busy schedule — with two Emmy-nominated shows, a film with sister Elle in the can, an Apple TV thriller in production and more — and, among her many credits, the one fans still bring up to her the most: “Man on Fire.”
“When people ask, ‘Do you even remember doing “Man on Fire”?’ I’m like, ‘Yeah, of course I do. What do you mean?’” she tells contributor Kara Warner of Tony Scott’s 2004 thriller, starring Denzel Washington as the bodyguard to Fanning’s 9-year-old kidnapping target. “I think about the memories with Denzel and with Tony, and getting to live in Mexico City for six months when you’re 9 years old is pretty spectacular.”
‘The Comeback’
(Christina House/Los Angeles Times)
For those of us who’ve been following the peaks and valleys of Valerie Cherish’s career since 2005, the end of “The Comeback” is bittersweet at best: While the series has achieved greatness by adhering to the old showbiz adage “always leave them wanting more,” I’d be happy to visit with the fictional actress for another two decades (or more).
There’s some solace, I suppose, in knowing creators Lisa Kudrow and Michael Patrick King feel the same way. In a moving essay for The Envelope, the pair share how the spirit of Robert Michael Morris, who played Valerie’s friend and hairdresser Mickey in Seasons 1 and 2, aided them during a crucial moment in production on Season 3. RIP, Mickey — and “The Comeback.” You are, and will be, sorely missed.
Viva Las Vegas!
Perhaps even more than Hollywood — and thanks in large part to Hollywood — Las Vegas is subject to cliched depictions in popular culture. But a new wave of Emmy-nominated series are showing a different side of Sin City,” writes contributor Whitney Friedlander.
“The Vegas we wanted to show and explore was Shyanne’s Vegas, which is so specific to her,” “Margo’s Got Money Troubles” director of photography Tari Segal tells Friedlander, referring to Michelle Pfeiffer’s character. “It would have that more aged, timeless quality of downtown Vegas, [and] it would have the income bracket of a Vegas that she would be comfortable in.”
Dave Bautista will take over as the lead in the Amazon Prime live-action TV series based on the widely revered video game franchise of the same name.
“Sons of Anarchy” alum Ryan Hurst had initially landed the role of one of the most famous dads in video game history, but in June he suffered an injury on-set while performing a stunt.
Hurst was announced as Kratos in January, and in a social media post he said that he used to play as Kratos. “Now I get to be him,” he wrote. “Grateful to pick up the axe, and honored by the fans who made this story legendary.”
Hurst needed surgery after severely tearing his bicep, and the recovery time would push production into 2027, which reportedly conflicted with filming schedules. Earlier this year, Hurst completed filming on four episodes of the first season of the highly anticipated show, but those will be scrapped and reshot with Bautista stepping in, and production resuming in the fall.
“God of War,” based on PlayStation’s ancient-mythology themed video game, follows Kratos — a Spartan by birth who later becomes the Greek god of war — and his son, Atreus, as they set off on a journey to spread the ashes of their wife and mother, Faye. Along the way, Kratos tries to help mold his son into a better god, and Atreus teaches his dad how to be a better man.
Bautista, a WWE wrestling champ turned movie star of Greek and Filipino descent, will join a cast that includes Callum Vinson as Atreus, Mandy Patinkin as Odin, Ed Skrein as Baldur, Max Parker as Heimdall, Ólafur Darri Ólafsson as Thor, Teresa Palmer as Sif, Alastair Duncan as Mimir, Jeff Gulka as Sindri, Danny Woodburn as Brok, Sonya Walger as Freya, Island Austin as Thrud, Ben Chapple as Magni, Louis Cunningham as Modi, and Evelyn Miller as Gna.
Emmy-winning director Frederick E.O. Toye, known for “Shōgun,” “The Boys” and “Fallout,” is helming the first two episodes of the forthcoming series.
Paramount Skydance’s proposed $111-billion takeover of Warner Bros. Discovery could result in 4,500 jobs eliminated in Los Angeles over a three-year period, according to a new report.
Los Angeles County supervisors earlier this year wanted to explore the potential economic impact of David Ellison’s proposed union of two historic Hollywood studios. The report, completed this week by CVL Economics, paints a sobering picture of the potential aftermath of the debt-laden deal, including the prospect of an estimated $1.26 billion in lost wages.
“Los Angeles County’s film and television economy is already undergoing a significant structural contraction,” the report said. “The proposed merger of Warner Bros. Discovery and Paramount Skydance introduces an additional source of risk into that already changing market.”
California Atty. General Rob Bonta is leading a coalition of 12 states attempting to block the merger on antitrust grounds. A trial has been set for March. Paramount and other groups, including cinema chain owners and some Hollywood unions, have agitated for a settlement to curtail months of uncertainty over whether the deal will go through.
The goal of the county’s report was to provide “a comprehensive assessment of the merger’s production workforce implications,” amid the ongoing decline of L.A. based film and television production work. Los Angeles has witnessed the elimination of more than 50,000 entertainment jobs since 2022.
The 120-page report, from the county’s Department of Economic Opportunity and Film Office and requested by Supervisor Lindsey Horvath, found that more than 15,000 corporate roles would be at risk, including an estimated 2,495 jobs based in Los Angeles County.
The two companies would have an overlapping workforce within its linear cable channel divisions, film and television studios, streaming operations and corporate functions, including marketing, technology and advertising sales.
“Effects on crews, crafts, post-production personnel, vendors, and production-serving small businesses,” could also be substantial, the report said.
“LA County’s own economic report underscores what we have been saying all along: our industry is in decline, production is down and jobs are being lost — and lost for good if we don’t act,” Paramount said. “Our plan to invest $30 billion annually in production and release at least 30 films a year.”
That commitment, Paramount said, would lead to “more jobs over time, and ultimately, a stronger, more durable entertainment industry for generations to come.”
Paramount has received clearances from the U.S. Justice Department and 65 other regulators around the globe to complete the merger.
Paramount has promised investors the deal would lead to at least $6 billion in cost savings through the consolidation of operations. The company has said the merger would ultimately be good for consumers and workers because a combined Paramount-Warner Bros. would have greater resources to compete with tech giants that are investing heavily in entertainment.
But the report pointed to the high level of debt that Paramount would have to take on — nearly $82 billion — to buy the stock of Warner Bros. Discovery shareholders to finalize the takeover.
The two companies already are carrying substantial interest costs due to their existing debt structures. “In the quarter ended June 30, 2026, the two companies reported a combined $712 million in operating income and $737 million in net interest expense,” the report said, meaning that the companies were producing less profit than what was needed to support their debt obligations.
Despite Paramount predicting cost savings and reduction in debt over time, “those savings will take several years to fully realize,” the report said.
David Ellison was hoping to wrap up his $111-billion merger with Warner Bros. by September.
(PATRICK T. FALLON/AFP via Getty Images)
Television production in Los Angeles could be especially vulnerable, in large part, because Paramount and Warner Bros. already have moved most of their feature film projects outside of L.A. High levels of TV production continues at Warner Bros. complex in Burbank and Paramount’s and CBS’ soundstages in Hollywood and Santa Clarita.
“The economic impact extends well beyond employment,” with an expected elimination of $547 million in tax revenue, including $78.6 million in local taxes, the report said.
It noted that Warner Bros. and Paramount films were “particularly employment-intensive.”
“Their theatrical releases carry 2.74 times as many screen credits as the average theatrical release, while their streaming films carry twice as many,” the report found.
The document also highlighted a pre-existing pull-back in production at the two studios in recent years — something that Ellison plans to correct.
Paramount was struggling to remain solvent prior to the Ellison family’s purchase of the media company last year. Warner Bros. had scaled back offerings following Discovery’s $43-billion takeover of WarnerMedia in 2022 as it struggled to contain the debt from that deal.
“Between 2019 and 2025, Warner Bros. Discovery and Paramount accounted for a net reduction of approximately 195 major U.S. releases,” the report said. At the same time, other major distributors combined “added about 67 projects.”
Ellison is looking to finalize his massive Hollywood deal — folding CNN, HBO, TBS, Food Network and the Warner Bros. film and television studios under Paramount — as quickly as possible. He must hold together Paramount’s coalition of financiers and manage rising expenses, primarily legal fees and escalating obligations to Warner shareholders.
The state attorneys general, including from Colorado, Oregon, Nevada, Washington and New York have argued that the blockbuster merger — the largest in Hollywood in decades — would violate the century-old Clayton Antitrust Act.
Paramount hoped the trial over Bonta’s lawsuit would begin in November but U.S. District Judge Araceli Martínez-Olguín set the trial for March 2.
If the deal goes forward, just four studios — a post-merger Paramount-Warner, Disney, NBCUniversal and Sony Pictures — would control 86% of movies that are widely released (in more than 3,000 movie theaters), according to the attorneys general lawsuit. Paramount has argued that projects from Amazon MGM, Netflix and Apple should be included because they compete with the traditional companies for talent and audiences.
Paramount-Warner Bros. would also own more than 50 cable channels, including HGTV, Animal Planet, BET, MTV and Comedy Central.