Lawmakers are trying to save Hollywood amid crisis, but why is a major sector being left out?

Kevin Ozebek Image
Saturday, June 7, 2025 8:32AM
Lawmakers are trying to save Hollywood, but a major sector is left out
California lawmakers pushed forward a proposal aimed at saving Hollywood, but some producers and production workers of commercials won't benefit.

HOLLYWOOD (KABC) -- California lawmakers in both chambers pushed forward a proposal this week aimed at saving Hollywood.

A $750 million proposed tax credit for film and TV production now only has a few more steps to go in Sacramento before it heads to the governor's desk.

But some producers and production workers of commercials who are seeing their work dry up won't benefit, and they feel left out as the crisis in Hollywood deepens.

Commercial production over the past decade has plummeted in Los Angeles by nearly 40% according to data from FilmLA, but commercials produced in California won't see a penny of that big tax break.

Frank Scherma, president of RadicalMedia, says nearly half of his business comes from producing commercials.

"We've gone from shooting probably 75% of the commercials here in California to about 25% of the commercials," said Scherma. "So it's gone down incredibly dramatically."

Because of permits, fees and other costs, Frank says a commercial shoot is now 20% cheaper in Atlanta and 35% cheaper in foreign markets like Prague.

So when Frank can't craft a commercial here at home, that means key grips like Danny Stephens aren't being put to work.

"Everybody's scrambling for work, everybody is depressed," said Stephens.

The depression is seeping in because Stephens is now barely doing what he does best, and that's rigging a camera onto anything.

He went from working commercial shoots 20 days a month, to just six.

"I've been doing this 32 years," said Stephens. "I should be thinking about retiring and to know that I have to maybe pivot and start over in a new career if it comes to that."

Stephens is far from the only one in production contemplating a major life pivot.

Finding Hollywood in crisis is a plot twist they never expected.

Because production in the L.A. area fell 22% in just the first quarter of this year according to FilmLA, lawmakers in Sacramento are racing to get a $750 million TV and film tax credit to the governor's desk.

"Most of what it is trying to do is keep the big productions here in California," said Democratic Assemblymember Rick Chavez Zbur who represents the 51st Assembly District.

Zbur is one of the sponsors of the tax credit, a credit that will give a break to film and TV productions, but not commercials.

"In the best of worlds, I would like there to be more money and I would include commercials in it, but we got to do the best with the limited amount of money we got."

Zbur says the bigger the production, the more jobs it generates so they're the Hollywood mega stars that need to be protected first.

That's hard to hear for those who make Hollywood gold, but with 30 second spots.

"I can go to Italy, I could go to China, I can go anywhere, but I don't want to. I want to keep it here," said Scherma. "I want to keep the crews that I know working and supported."

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