Santa Clarita’s entertainment industry, particularly the film sector, has shown marked growth and activity in 2024. The Santa Clarita Valley Economic Development Corporation’s Q2 2024 Economic Snapshot highlights a meaningful year-over-year net job growth, indicating a healthy economic environment that supports the entertainment industry. Historically, Santa Clarita has been a prominent location for film production, tracing back to the early 20th century. The city sits within Hollywood’s 30-mile zone, offering tax incentives and benefits for productions. This positioning has contributed to a steady increase in local filming revenue. Revenues have grown from $6.3 million in 2003 to nearly $44 million in recent years, excluding the pandemic-affected year of 2020. Santa Clarita supports robust infrastructure for film production, including 57 soundstages, five production facilities, and several movie ranches.
Production Facilities and Infrastructure
The Santa Clarita Film Office manages the balance between production needs and community interests, attracting numerous productions and contributing to local economic growth. The Santa Clarita Valley has become a prime location for film production in 2024, seeing substantial investments in infrastructure. These developments underline the city’s appeal to production companies and creative talents, ensuring continued growth in the entertainment industry. In 2024, Santa Clarita continues to host several productions, including popular shows like “S.W.A.T.” The city maintains its reputation as a film-friendly environment, with ongoing projects and new productions regularly taking place.
However, challenges exist, such as the halt of a large studio project by Shadowbox Studios due to funding issues. This project is intended to be a significant addition to the city’s production capabilities, with plans for 19 soundstages and other facilities. Despite these challenges, industry insiders express confidence in the city’s ability to attract and sustain film projects, though they acknowledge competition from other regions offering rebates and incentives. The presence of companies like L.A. North Studios and Triscenic Production Services expanding their operations further underscores the area’s growth potential.
Economic and Cultural Impact
The entertainment industry’s impact extends beyond film production, contributing to local tourism, with visitors drawn to the city due to its association with popular films and shows. This dual effect of film and tourism bolsters the local economy and enhances Santa Clarita’s appeal as a destination for both filmmakers and tourists. Various factors, including infrastructure developments, cultural initiatives, and economic dynamics, have driven growth in Santa Clarita’s entertainment industry in 2024. The city has been a hub for film and television production, partly due to its strategic location within the 30-mile zone of Los Angeles, providing easy access to resources and talent.
Recent developments have both supported and challenged this growth trajectory. A major development was the proposed construction of a massive film and television studio complex by Shadowbox Studios. This project, which included 19 soundstages and spanned 93.5 acres, promised to enhance the region’s capacity for large-scale productions. However, it stalled due to funding challenges and logistical considerations. Despite this setback, the local industry remains optimistic, with other companies like Scenic Companies and Triscenic Production Services expanding their operations. Scenic Companies, for instance, signed a multiyear lease for nearly 300,000 square feet of space at the Saugus Station Industrial Center, highlighting continued investment in the region’s infrastructure.
Potential Economic Impact of Legalized Online Betting
If online sports betting becomes legalized in California, it could significantly impact the local economy, including Santa Clarita. California has the potential to become the largest sports betting market in the United States, with projected annual wagers of $60 billion and potential revenue of $3 billion. This new industry would introduce another revenue stream for Santa Clarita, potentially attracting investments and creating jobs. The region’s existing infrastructure and business-friendly environment make it well-positioned to benefit from such developments. Companies like PlayCA or BetMGM would likely see substantial activity, further contributing to the economic growth of the area. The integration of this new industry could complement Santa Clarita’s entertainment and tourism sectors, fostering a more diverse economic base and enhancing the city’s appeal as a destination for both business and leisure.
Business-Friendly Environment
Santa Clarita’s business-friendly environment has been a key factor in attracting entertainment companies. The absence of gross receipts and utility user taxes, combined with lower living costs compared to other parts of Southern California, makes it an attractive location for businesses and professionals in the media and entertainment sectors. This economic climate supports a high median household income and a robust employment landscape, with average salaries in the sector reaching $92,171. The region’s strategic location also offers logistical advantages, being close to major transportation hubs like L.A.X. and the Burbank Hollywood Airport, further facilitating business operations.
Cultural initiatives have also played a role in the growth of Santa Clarita’s entertainment industry. Old Town Newhall has transformed into an arts and entertainment district, blending the city’s Western heritage with contemporary cultural experiences. This area hosts events, galleries, and performance venues, making it a destination for both locals and tourists. Events such as the SENSES Block Parties and performances at The MAIN theater contribute to the cultural scene, attracting visitors and fostering a sense of community.
Tourism, closely linked to the entertainment industry, has seen a positive trend in Santa Clarita. The city’s tourism marketing efforts have been successful in increasing visitor numbers, with hotel occupancy rates reaching 85.6% in Q2 2024. This growth is partly attributed to the city’s ability to host a range of events from film festivals to sports tournaments, drawing visitors from across the region. The Santa Clarita International Film Festival, for example, continues to grow in prominence, providing a platform for filmmakers and contributing to the city’s cultural and economic vitality.
Despite these developments, Santa Clarita has faced challenges, particularly due to labor strikes and economic uncertainties impacting filming activities. The economic impact from film and entertainment in the city dropped significantly in the past fiscal year, largely due to disruptions caused by strikes. However, recent agreements between major industry unions and producers have provided hope for a rebound in production activities. The residential and commercial real estate markets in Santa Clarita also reflect broader economic trends impacting the entertainment industry. Construction costs have risen, influencing the development of new projects. Nonetheless, the demand for residential housing remains strong, with new developments like Outlook Santa Clarita adding to the housing inventory. This growth in housing supports the influx of professionals and families drawn to the area by its entertainment and cultural offerings.
