Independent LA Studio Hopes for Hollywood Production Rebound

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Shep Wainright, the founder of East End Studios in Los Angeles, spent $230 million to build a new 36,000-square-foot, 42-foot-clear production complex with five state-of-the-art sound stages. But with the film industry facing a barrage of hits including the pandemic, strikes, economic pressures, and productions moving out of state, the studio's occupancy has dropped below 60% - far below the 90% it had when construction began four years ago.

Why it matters

The struggles of East End Studios reflect the broader challenges facing the entertainment industry in Los Angeles, which has long been the heart of Hollywood production. The exodus of productions to other states and countries with better tax incentives has hit LA's film industry hard, raising concerns about the city's ability to maintain its status as a global entertainment hub.

The details

Wainright and his partners at East End Studios were already operating production facilities in LA and New York when they decided to build the massive new studio complex along the iconic Sixth Street Bridge, betting that the movie industry would fill it. However, the pandemic, the 2023 writers and actors strikes, economic pressures, and the lure of tax incentives in other locations have all taken a toll, leaving the new studio largely empty.

• Wainright began developing and building the $230 million movie and TV complex four years ago.
• The studio's stages were at 90% occupancy when construction began.
• The studio's stages are now below 60% occupancy.

What they’re saying

What’s next

Wainright said he's grateful to Mayor Karen Bass and the state for pushing numerous incentives that have begun luring the industry back, and that there's been new chatter about the Trump administration possibly considering a stackable federal tax credit that could make LA more competitive with the UK and Canada.