Move Over L.A.: How New Jersey Became the Hub of ‘Hollywood East’

‘Why Hollywood Is Leaving L.A. for New Jersey’s ‘Hollywood East’

file photo Netflix Fort Monmouth

the staff of the Ridgewood blog

Ridgewood NJ, The geography of the entertainment industry is shifting. While Los Angeles has long held the crown as the movie capital of the world, a quiet revolution is taking place on the East Coast. Major entertainment powerhouses like Netflix, Paramount, and Lionsgate are pivoting away from Southern California and planting permanent flags in New Jersey.

The driving force behind this massive migration? A combination of production deficits in Southern California and some of the most aggressive, lucrative film tax incentives in the United States.

The Decline of Traditional Hollywood Production

The American film and television industry is facing a challenging economic climate, with domestic production dropping roughly 20% year-over-year. To cut overhead costs, production companies have spent years migrating to tax-friendly hubs like Georgia, Canada, and the United Kingdom.

However, external pressures and proposed international film taxes have forced studios to look for competitive, long-term options within the United States. New Jersey has stepped up to fill that void, transforming local economies from Trenton to Newark into bustling backlots.

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Inside the New Jersey Film Tax Incentives Blueprint

To attract major entertainment infrastructure, the Garden State established a highly competitive film and digital media tax credit program.

• Base Tax Credits: New Jersey-based productions receive between 30% to 35% in tax breaks and incentives.

• Studio Partnership Program: A specialized tier offers additional tax credits of up to 40% for studios making long-term infrastructure commitments within the state.

“New Jersey’s incentive program is the blueprint for any state that wants to succeed,” says Netflix CEO Ted Sarandos, comparing the state’s aggressive framework to the highly successful production models found in the U.K.

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The Big Three: Studios Building ‘Hollywood East’

1. Netflix Studios Fort Monmouth

In May 2025, Netflix broke ground on a massive $1 billion project to renovate the former Fort Monmouth Army base into a state-of-the-art production facility. The complex will feature:

• 12 sound stages

• Dedicated dressing rooms and post-production facilities

• Direct local employment pipelines

The investment follows a pattern of domestic growth for the streaming giant. Netflix recently shifted seven major production projects from the United Kingdom directly to New Jersey.

2. Paramount at 1888 Studios (Bayonne)

Following its acquisition of Warner Bros. Discovery, Paramount secured a landmark 10-year lease to become the anchor tenant at 1888 Studios in Bayonne, New Jersey. This massive complex boasts:

• 23 cutting-edge production stages

• Extensive post-production suites

• Eligibility for up to 40% in state film tax credits

3. Lionsgate Newark Studios

Lionsgate is also establishing deep roots in the state with the development of Lionsgate Newark Studios. Construction began in late 2025 with an expected opening in 2027. State officials view the facility as a major economic catalyst engineered to create thousands of local jobs and drive meaningful commercial investments into Newark’s downtown sectors.

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Major Blockbusters Already Filming in NJ

The fruits of these tax deals are already making their way to the silver screen. High-profile directors and producers are bypassing traditional New York or Pennsylvania locations explicitly for New Jersey’s financial benefits:

• Steven Spielberg’s upcoming film Disclosure Day shot key scenes on location in Montvale, NJ.

• Peter Farrelly’s Sylvester Stallone biopic, I Play Rocky, chose to film in Keansburg, NJ.

As veteran producer Toby Emmerich noted regarding the filming of I Play Rocky, the production landed in the Garden State strictly because they offered the best tax deal in the business.

With multi-billion-dollar infrastructure commitments locked in for the next decade, the entertainment industry’s reliance on Los Angeles is shrinking. Hollywood East is no longer a future concept—it is officially open for business.

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• Tags: Entertainment Business, Film Industry, Tax Incentives, Netflix, New Jersey Economy, Hollywood Trends, Movie Production.