For years, when industry professionals talked about the production journey, it was usually about projects leaving Traditional film and television centers such as Los Angeles and New York are lured by new tax breaks, cheaper workplaces, and fewer regulatory restrictions in other US states (or abroad). While this is still true, some of these rising players may now be feeling the pain of inconsistent production as well.
In early March, the CEO of a major studio operator noted that some markets once seen as up-and-coming production destinations were now beginning to experience some slumps in film and TV. “Los Angeles and New York have seen production rise as other markets like Albuquerque, New Mexico, New Orleans, Louisiana and Atlanta have fallen,” said Victor Coleman, who runs Hudson Pacific, owner of Sunset Bronson Studios where Netflix leases in Los Angeles.
Less than two months later, Hudson Pacific is shutting down its studio services supplier, Quixote, which operates in Georgia and New Mexico, as well as laying off 70 employees in Atlanta and Los Angeles as it works to shrink its footprint, a source familiar with the decision says. Hollywood Reporter.
In Georgia and New Mexico, Quixote operated a fleet of vehicles as well as providing production supplies for film and television projects. In Los Angeles, the utility company is finalizing leases on several soundstages including Quixote West Hollywood, which has hosted commercial and music video shoots, as well as Van Nuys’ lease at Quixote Central Valley (formerly Chandler Valley Center Studios, also known as NBC’s Backdrop). The office.) The operator also leases Griffith Park Studios, which has an ongoing tenant, and will retain that location.
“Quixote’s fleet, rental equipment and supplies remain fully operational and ready to support production needs,” Sean Griffin, senior vice president of sales at Quixote, told THR. “For customers of Quixote’s soundstage and Atlanta operations, we are taking a phased and collaborative approach to minimize disruption, while continuing to provide a high level of service during this transition period.”
Hudson Pacific acquired Quixote in 2022 for $360 million at the height of the Streaming Wars content bubble when audio platforms were seen as a better bet than office space. The company is a prominent provider of equipment, lighting, vehicle rentals and other services for film and television filming and an employer of workers below the line on projects. (Those Star Waggons trailers parked on a typical talent movie? That’s Quixote, the legacy Star Waggons brand sold to Hudson Pacific in 2021 as part of a $222 million deal to increase its service offerings.)
Since buying Quixote in 2022, which Coleman described last March at an investor conference in Miami as “not the best deal we’ve ever done,” the major studios have pulled back on content spending, trimming slate and ordering episodes back from the days when the likes of HBO Max and Disney+ were in a global race for subscribers with Netflix (they lost that race). The number of original series on TV networks and streaming companies has declined for three straight years since then, with 2025 seeing an 11 percent decline in premieres compared to 2024, according to data provider Luminate.
Hudson Pacific expects $21 million to $27 million in potential annual cost savings from the move to shrink Quixote’s operations in Atlanta and move “select” equipment to Los Angeles and New York. Both New Mexico and Georgia saw declines in shooting numbers and production spending to start 2026, according to industry platform ProdPro. Georgia was previously the filming home of Marvel Studios, which has now largely moved to the UK
These moves also reflect the reality of occupancy rates at Hudson Pacific soundstages. The operator’s Hollywood theaters are 96 percent leased while Quixote’s stages are “at 53.3 percent,” company President Mark Lamas said on an earnings call in late February, suggesting there is plenty of open space in leased soundstages.
“Quixote is taking steps to move away from leased soundstages and markets characterized by structural cost or demand disadvantages, which will allow Hudson Pacific to focus financial and operational resources on our office portfolio and high-performing segments of our studio business,” Lamas added in a statement issued Tuesday.
These high-performing segments include Sunset Studios, where Netflix is the anchor tenant in the ICON, EPIC and CUE buildings as part of the complex on Sunset Boulevard until 2031. However, the streaming giant is in final talks to buy the historic Radford Studio Center in Studio City, with speculation that it may look to make the complex its new Los Angeles headquarters. This could open up more studio space in the Hudson Pacific suite.
