Hollywood isn't just a sign on a hill or a state of mind. It’s an economic engine that's currently sputtering. When Skydance Media moved to merge with Paramount Global, the industry didn't just look at the stock price. We looked at the jobs. David Ellison is now steering one of the most storied ships in cinema history, but he’s doing it at a time when the "Runaway Production" crisis has turned from a trickle into a flood. If Ellison wants to prove he's the savior the L.A. film community needs, he has to do more than just greenlight blockbusters. He has to keep them here.
For years, we've watched our crews—the best grips, electrics, and scenic artists in the world—pack their bags for Atlanta, London, or Budapest. They aren't going because they want to. They’re going because that's where the money went. The local film community is tired of hearing about "synergy" and "streamlining." We want to hear about soundstages in Hollywood being booked through 2030.
The Local Economic Reality Nobody Mentions
Everyone talks about the glitz of the Paramount lot, but they forget about the dry cleaners, the catering companies, and the rental houses in the Valley. When a massive production leaves California, those small businesses feel the hit immediately. It’s a chain reaction. Ellison’s Skydance has a history of big-budget spectacles like Top Gun: Maverick and Mission: Impossible. These are exactly the types of projects that can sustain thousands of local families if they stay grounded in Southern California.
The problem is the math. Other states and countries offer tax credits that make California’s program look like pocket change. It’s hard to blame a CFO for wanting to save $20 million by filming in Georgia. But the long-term cost is the erosion of the very infrastructure that made Paramount a titan. If the skilled labor leaves because they can't pay their mortgages in Burbank, the "creative capital" of the world becomes a hollow shell. Ellison has the unique chance to use his leverage to advocate for better local incentives while committing his own slate to California soil.
Why Technical Expertise Still Lives in L.A.
I've talked to countless cinematographers who say the same thing. You can find a camera anywhere. You can't find the institutional knowledge of a third-generation lighting tech just anywhere. Los Angeles has a "tribal knowledge" of filmmaking that’s been refined for a century. When productions move to "emerging markets" to chase a tax break, they often end up flying in the department heads from L.A. anyway. It’s inefficient and, frankly, insulting to the local workforce.
Ellison knows the value of craft. You don't make movies like his without a deep respect for the technical side of the frame. He should lead by example. Imagine the signal it would send if the new Paramount-Skydance entity pledged a specific percentage of its mid-to-high budget projects to be filmed entirely within the 30-Mile Zone. It wouldn't just be good PR. It would be an investment in the quality of the final product.
Rebuilding the Middle Class of Film
The biggest lie in the industry is that you’re either a star or a starving artist. There used to be a massive middle class of film workers. These were people who worked 40 weeks a year, had great healthcare, and retired with a pension. That’s the group that's hurting the most. The "gig economy" mindset has bled into high-end film production, making every job feel like the last one.
Ellison could change this by prioritizing long-term labor stability. Instead of project-based hiring that treats people as disposable, a commitment to local production allows for a more stable ecosystem. We don't need more "visionary" speeches about the future of streaming. We need a commitment to the people who actually wrap the cables and build the sets.
Investing in the Next Generation of Local Talent
It’s not just about the veterans. The kids coming out of film programs at USC, UCLA, and CalArts are looking at an industry that seems to be moving away from them. If Ellison wants to leave a legacy, he should be funding apprenticeships that specifically target local L.A. youth. This isn't about charity. It’s about making sure the pipeline of talent doesn't dry up because the cost of living in L.A. is too high and the jobs are in Vancouver.
Fighting the Runaway Production Trend
The competition isn't just other studios. It’s other governments. Places like the UK and New Mexico are aggressive. They want our jobs, and they’re winning. David Ellison has the political and financial weight to sit down with Sacramento and demand a more competitive landscape for big-budget features.
California’s current tax credit system is often capped or tilted toward television. This leaves big features out in the cold. Ellison is in a prime position to argue that losing a $200 million feature is a massive loss in tax revenue and local spending. He needs to be the loudest voice in the room, not just a guy behind a desk.
A Simple Roadmap for the New Paramount
If I were sitting across from Ellison today, I’d tell him to stop looking at the spreadsheets for five minutes and look at the streets of Hollywood. The transition of power is the perfect time to reset the culture.
- Commit to the Lot: Maximize the use of the actual Paramount studio space. Don't let those stages sit empty while you're renting space in London.
- Advocate for Reform: Use the corporate muscle of the new entity to push for California film tax credit expansion.
- Hire Local: Implement a "California First" policy for below-the-line hiring.
- Transparency: Be honest with the guilds and unions about the long-term production schedule.
The film community doesn't expect miracles. We know it’s a business. But we also know that David Ellison loves movies. You can see it in the stuff he produces. He’s a fan. He’s a flyer. He’s a guy who cares about the spectacle. Now he needs to show he cares about the people who make that spectacle possible.
The honeymoon period for this merger won't last long. The trades will stop talking about the deal points and start talking about the layoffs and the production slates. Ellison can either be the guy who managed a declining asset or the guy who brought the "Magic of Hollywood" back to the place that actually invented it. It’s time to stop exporting our best work and start reinvesting in the neighborhood.
Start by moving a major franchise production back to Melrose Avenue. Show us the trucks. Show us the jobs. Show us that the new Paramount actually cares about Los Angeles.
