For decades, the image of Hollywood was singular: the iconic hillside sign, sprawling studio lots in Burbank and Culver City, and the relentless sunshine of Southern California. It was the undisputed epicenter of the global film and television industry. But over the last 15 years, a quiet revolution has reshaped the American media landscape. The bright lights have found powerful new hubs far from the Pacific, transforming cities in the American South and Southwest into what can only be described as Hollywood’s new backlots.
This is not merely a story of a few location shoots. It is a fundamental restructuring of an industry, driven by economic calculus, strategic policy, and a hunger for authentic landscapes. Atlanta, Albuquerque, and New Orleans have emerged as the triumvirate of this new heartland, each cultivating a unique and thriving ecosystem that supports billion-dollar productions. This is the story of how they did it, the profound impact they’ve had, and what it reveals about the future of storytelling in America.
The Engine of Incentives: The Great Migration Begins
The single most powerful force behind this geographic shift is the film tax credit. Beginning in the 1990s and accelerating after the 2008 financial crisis, states began to see the film industry not just as a glamorous novelty, but as a potent engine for economic development. The model was simple: offer production companies a refundable or transferable tax credit for a percentage of the money they spend locally on labor, goods, and services.
The appeal for studios was immediate and powerful. Facing rising costs and shrinking margins, a 25-30% rebate on a $100 million production was no longer a perk; it was a business necessity. This triggered a race among states to offer the most attractive packages, creating a competitive landscape where production dollars would flow to the most hospitable environments.
But as countless states have learned, a generous incentive alone is not enough to build a sustainable industry. The true success stories—Atlanta, Albuquerque, and New Orleans—combined these financial carrots with strategic infrastructure investment, workforce development, and a unique “look” that producers craved. They didn’t just offer a discount; they built a home.
The A-T-L: Georgia’s Unstoppable Rise as “The Hollywood of the South”
If one city embodies the scale of this industry migration, it is Atlanta. What began as a trickle of productions in the early 2000s has become a deluge, earning Georgia the fitting nickname “Y’allywood.”
The Catalyst: The Georgia Entertainment Industry Investment Act. Enacted in 2008, this legislation was a game-changer. It offered a flat 20% transferable tax credit for qualified production and post-production expenditures. Crucially, it added an additional 10% uplift if the finished project included an embedded Georgia promotional logo. This created a stable, predictable, and highly attractive financial model. Producers could bank on the math, making long-term investment in the state a viable strategy.
Building an Ecosystem, Not Just a Set. Georgia’s genius was in anticipating the needs of a full-scale industry. The incentives attracted the projects, but it was the infrastructure that made them stay.
- Pinewood Atlanta Studios: The arrival of the UK-based Pinewood Group in 2014 was a watershed moment. The state-of-the-art facility in Fayetteville, with its massive soundstages (including the 18,000-square-foot “007 Stage”) and on-site support services, signaled that Georgia was in it for the long haul. It became the home base for the Marvel Cinematic Universe, among other blockbuster franchises.
- Tyler Perry Studios: A testament to homegrown power, Tyler Perry acquired 330 acres of the former Fort McPherson army base, creating one of the largest and most comprehensive film studios in the country. With 12 soundstages and standing sets that replicate everything from a White House to a suburban neighborhood, it is a vertical empire of production.
- Workforce Development: The state’s technical colleges and universities, like Savannah College of Art and Design (SCAD) and Georgia State University, rapidly developed programs to train a local crew base—from gaffers and grips to animators and VFX artists. This prevented the need to import expensive crews from LA, keeping more money in the local economy and making productions more efficient.
The On-Screen Proof: A Universe of Content. Atlanta’s portfolio is staggering. It is the undisputed home of the Marvel Cinematic Universe, with films like Black Panther, Avengers: Endgame, and the Guardians of the Galaxy series largely shot at Pinewood. It’s the dystopian backdrop for Netflix’s Stranger Things and the high-octane racing grounds for the Fast & Furious franchise. Critically acclaimed films like Ford v Ferrari and award-winning shows like The Walking Dead further cement its status as a versatile production hub capable of handling any genre and scale.
The Economic and Cultural Impact. The numbers speak for themselves: the film and television industry in Georgia generates billions of dollars in direct spending annually and supports over 100,000 local jobs. But beyond the economics, Atlanta has developed a unique cultural identity within the industry. It has become a hub for Black creatives and stories, from the productions of Tyler Perry and Will Packer to the global phenomenon of Black Panther, which showcased the city’s vibrant culture to the world. Atlanta is no longer just a filming location; it is a creative capital in its own right.
The Albuquerque Model: How a “Breaking Bad” Economy Was Built
While Georgia went for scale, Albuquerque carved out a different, equally successful niche. Its story is a masterclass in leveraging a single, iconic success to build a diverse and resilient production economy.
The Before-Time: A Desert Backlot. New Mexico was an early pioneer, launching its incentive program in 2002. It offered a 25% refundable tax credit on direct production costs, making it immediately competitive. This attracted films like No Country for Old Men and The Book of Eli, which utilized the state’s stark, beautiful landscapes. But it was a television show that would change everything.
The “Breaking Bad” Effect. When Vince Gilligan’s Breaking Bad chose Albuquerque as its home in 2008, it was more than just a location shoot. The city became a character in the story. The sprawling desert, the distinct adobe architecture, and the unique high-desert light were integral to the show’s tone. The show’s critical and commercial success put Albuquerque on the map for a new generation of creators. It proved that the city could be the backdrop for sophisticated, character-driven, and visually stunning prestige television.
Sustaining the Boom: Nurturing a Homegrown Industry. Unlike some states that saw productions come and go, Albuquerque and New Mexico focused on retention.
- Netflix Takes Root: In a move that validated the entire strategy, Netflix chose Albuquerque for its first-ever U.S. production hub, purchasing ABQ Studios in 2018. This billion-dollar investment created a long-term anchor, making the city a home for major Netflix productions like Stranger Things spinoffs, The Harder They Fall, and Daybreak.
- Leveraging the “Better Call Saul” Legacy: The Breaking Bad universe continued to fuel the local economy with the spin-off Better Call Saul and the sequel film El Camino, ensuring a steady pipeline of work and maintaining the city’s profile.
- Diversifying the Portfolio: While known for its gritty dramas, Albuquerque has shown remarkable versatility. It’s the comedic home to the High School Musical reboot series, the fantastical setting for Roswell, New Mexico, and the sci-fi landscape for films like Sonic the Hedgehog. This diversity protects the local industry from being tied to a single genre.
The Community Impact. The influx of production dollars has had a tangible effect on Albuquerque’s small business economy. Local vendors for catering, lumber, transportation, and hardware have become integral parts of the production machine. The industry has created a stable, well-paying career path for New Mexicans, stemming the “brain drain” of creative talent to the coasts. The “Breaking Bad” tour has even become a significant tourist attraction, demonstrating the secondary economic benefits of a robust film industry.
The Crescent City Comeback: New Orleans’ Resilient Film Scene
New Orleans’ journey is one of resilience and reinvention. Long a favorite for location managers seeking its unique French Quarter aesthetics and bayou mystique, it has weathered natural and economic disasters to build one of the most distinctive and creative production hubs in the country.
A History of Character. Even before modern incentives, New Orleans had a film history, with classics like A Streetcar Named Desire and Easy Rider capturing its singular atmosphere. Its natural and architectural authenticity is nearly impossible to replicate on a soundstage. Louisiana supercharged this inherent appeal in 2002 with one of the nation’s most aggressive incentive programs, offering up to a 40% tax credit on in-state expenditures. This launched the first “Louisiana boom,” earning the I-10 corridor between New Orleans and Baton Rouge the nickname “Hollywood South.”
Weathering the Storms: Katrina and Fiscal Challenges. The devastation of Hurricane Katrina in 2005 was a catastrophic blow, shutting down production entirely. Yet, the industry played a vital role in the city’s recovery, providing jobs and hope when they were needed most. Productions like The Curious Case of Benjamin Button returned, signaling a comeback. However, the industry faced another threat in the 2010s: concerns over the cost of the program led the state to cap its annual spending, creating uncertainty and driving some productions away.
The Phoenix Rises: A Mature and Adaptable Industry. Through these challenges, New Orleans’ film community proved its mettle. The city refined its incentives, creating a more sustainable but still competitive program. More importantly, it leaned into its unique strengths.
- A Crew Base of Craftspeople: New Orleans developed a deep and highly skilled local crew base known for its problem-solving ingenuity and “can-do” attitude, a reflection of the city’s own resilient spirit. These are not just technicians; they are craftspeople who bring a unique passion to their work.
- Genre Specialization: The city has become a global capital for fantasy and horror, genres that fit its gothic, mysterious, and slightly surreal ambiance. The American Horror Story franchise, The Originals, Interview with the Vampire, and Mike Flanagan’s Netflix hits like The Haunting of Hill House have all called New Orleans home.
- Beyond Location: A Creative Hub: New Orleans has transcended its role as a mere backdrop. It has become a source of original stories and a magnet for independent filmmaking. The city’s rich cultural tapestry—its music, its food, its traditions—infuses the projects filmed there with an authenticity that is palpable on screen.
The Cultural Symbiosis. The relationship between the film industry and the city of New Orleans is deeply symbiotic. Productions infuse the local economy with capital, but they also draw creative energy from the city’s vibrant culture. The result is a body of work that feels intrinsically linked to its place, a quality that audiences and critics increasingly value.
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The Ripple Effects: Challenges and the National Conversation
The rise of these regional hubs is not without its complexities and critics. The success of Georgia, New Mexico, and Louisiana has sparked a national conversation about the costs and benefits of this new model.
The Incentives Debate. The primary criticism revolves around the use of public money to subsidize a wealthy, for-profit industry. Opponents argue that these tax credits represent a massive giveaway that could be better spent on education, infrastructure, or healthcare. They question the true return on investment, suggesting that the transient nature of production work and the importation of some high-level talent can inflate the economic benefits.
Proponents counter that the economic activity is undeniable. The spending on local hotels, restaurants, lumberyards, hardware stores, and car rentals creates a powerful multiplier effect. They point to the tens of thousands of stable, middle-class jobs created—not just for actors and directors, but for carpenters, electricians, and accountants. The debate is ongoing, forcing states to continually refine their programs to ensure they deliver tangible value to their citizens.
The Infrastructure Strain. Rapid growth brings growing pains. In cities like Atlanta, the explosion of production has led to a shortage of soundstage space and crew, driving up costs and creating scheduling logjams. Housing costs in popular filming neighborhoods have risen. This has created a new challenge for these hubs: managing their own success to avoid the very problems of cost and congestion that drove productions out of Hollywood in the first place.
A More Democratic Creative Landscape. Perhaps the most profound positive effect is the democratization of the industry. The concentration of production in Los Angeles created a high barrier to entry. Today, a talented filmmaker in Atlanta, a skilled grip in Albuquerque, or a production designer in New Orleans can build a thriving career without ever having to move to California. This geographic diversity is also fostering a diversity of stories. The perspectives of the American South and Southwest are being woven into the national narrative in a way that was less common when the industry was confined to a single coastal city.
The Future of America’s Backlots
The transformation of Atlanta, Albuquerque, and New Orleans into production powerhouses is a permanent feature of the modern media landscape. It is a shift born of economic imperative but solidified by community, infrastructure, and creative synergy.
The future points toward further consolidation and specialization. Atlanta will likely continue its trajectory as the blockbuster capital, a hub of scale and VFX-driven storytelling. Albuquerque will solidify its role as a home for innovative, auteur-driven television and film, buoyed by the deep pockets of streaming giants. New Orleans will continue to be the go-to destination for projects that demand a specific, soulful, and atmospheric texture.
The “Hollywood sign” is no longer a single location on a California hillside. It is a network of creative centers scattered across the American heartland. The story of how Atlanta, Albuquerque, and New Orleans became America’s backlots is more than a business case study; it is a testament to the power of place, the allure of authenticity, and the enduring, evolving magic of telling American stories, from the heart of America itself.
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Frequently Asked Questions (FAQ)
Q1: Why did this shift happen so rapidly in the last 15 years?
A: A perfect storm of factors converged: the 2008 financial crisis pressured studios to cut costs dramatically; digital technology made remote collaboration easier; states, desperate for new economic engines, refined and aggressively marketed their incentive programs; and a generation of producers and directors who came of age outside of LA began championing new locations.
Q2: Aren’t these just tax giveaways to rich Hollywood studios?
A: This is the central debate. While studios do benefit financially, the argument for incentives rests on the broader economic impact. A $100 million production might get $30 million back in credits, but it spends the entire $100 million locally on wages, goods, and services, supporting thousands of jobs and small businesses. States see it as an investment that stimulates far more economic activity than the credit’s cost.
Q3: What happens to Los Angeles? Is “Hollywood” dying?
A: Not at all. Los Angeles remains the undisputed center of the industry for development, financing, agency representation, and post-production, especially for VFX and sound mixing. It is the corporate and executive headquarters. The “Hollywood” model has simply evolved into a hub-and-spoke system, with LA as the central hub and cities like Atlanta and Albuquerque as major production spokes.
Q4: I live in one of these cities. How can I get a job in the film industry?
A: The best path is through local connections and training. Most states have a film office website (e.g., Georgia Film Office, New Mexico Film Office) that lists resources and sometimes job boards. Look for local union apprenticeship programs (for IATSE grips, electricians, etc.), PA (Production Assistant) training workshops, and courses at local colleges. Networking is key—attend local film festival events and industry mixers.
Q5: With the rise of virtual production (like LED “Volume” stages), will location shooting still be necessary?
A: Virtual production is a powerful tool, but it complements rather than replaces location shooting. It excels at creating impossible or logistically difficult environments (like alien worlds). However, the authenticity, texture, and cultural specificity of a real place like the French Quarter or the New Mexico desert are incredibly difficult and expensive to replicate digitally. The future will likely be a hybrid model, using real locations enhanced by VFX and virtual production.
Q6: Which other U.S. cities are emerging as significant production hubs?
A: The success of the “big three” has inspired others. Key emerging hubs include:
- Austin, Texas: A strong independent film scene and a unique culture.
- Philadelphia, Pennsylvania: Proximity to New York and generous state incentives.
- Chicago, Illinois: A long history of filmmaking and a deep crew base.
- The entire state of California: In response to the outflow, California has significantly enhanced its own tax credit program to retain and lure back productions.
Q7: Has this trend affected the types of stories being told?
A: Absolutely. When you film in Atlanta, you have access to a different pool of background actors, local talent, and cultural influences than in LA. This inherently brings more regional and cultural diversity to the screen. Stories like Black Panther and Treme are deeply connected to their filming locations in a way that would be impossible to replicate on a soundstage in Burbank.