Paramount Eyes Texas and Tennessee as Hollywood Exodus Accelerates

Paramount is reportedly considering leaving Los Angeles and California, a move that would remove one of Hollywood's Big Five studios from the entertainment capital. According to FOX Business, internal discussions are ongoing, though no final decision has been made. The studio has been exploring options in Austin, Texas, and Nashville, Tennessee.

This potential relocation comes amid a proposed merger between Paramount and Warner Bros., which has faced pushback from state and local authorities. California has sued to block the merger. If both the merger and the move proceed, the landscape of Hollywood's major studios could shift dramatically.

The Big Five currently comprises Disney, Universal, Warner, Sony, and Paramount. Depending on the outcome, that number could shrink to four or even three. Such a consolidation would be a significant blow to the region's status as the world's entertainment production hub.

Paramount's potential exit is not an isolated event. A growing list of stars and productions have already left California for states with lower taxes and fewer regulatory burdens. "American Idol" recently announced it will move from Los Angeles to Atlanta, changing its iconic line from "You're going to Hollywood!" to "You're going to Atlanta!" This shift also improves the tax situation for those involved.

Other notable departures include Kelly Clarkson, who relocated her daytime talk show, and Jason Eisenberg, who moved to Indiana. Glenn Powell (Texas), Harrison Ford (Montana), Matthew McConaughey (Texas), Ty Burrell (Utah), Jessica Biel and Justin Timberlake (Tennessee and Montana), and Dean Cain (Nevada) are among the stars who have cited California's taxes and policies as reasons for leaving.

Dean Cain, known for his role as TV's Superman, criticized California in June 2023, calling it the "land of ridiculousness" and blaming "terrible fiscal policies, soft-on-crime policies, and homelessness policies" for driving out those who can afford to leave. He noted that people are "flocking out of there in droves."

The pattern suggests that if Paramount moves to Tennessee or Texas, it would follow other businesses and individuals to red states with lower taxation and regulatory burdens. These states also tend to have leadership that prioritizes law and order and economic growth.

California, New York, and Illinois have been losing residents and businesses to states like Florida and Texas. Tennessee is now emerging as a contender, while Georgia, despite turning purple, offers production incentives that make California envious. Texas has already attracted tech and finance with the Silicon Prairie and Y'all Street, and has been reducing property taxes. Florida boasts beaches, sunshine, and a favorable tax climate. Georgia and Tennessee offer willing workforces and proactive leadership eager to attract high-profile industries.

The old mantra "Go West, young man!" that once drew ambitious individuals to California during the Gold Rush holds little sway in the era of Zoom, AI, and easy mobility. Technologies like The Volume, the digital stage used in "The Mandalorian," reduce the importance of California's weather.

If people cannot persuade their legislatures to lower taxes, they will find a state that will. As Dean Cain implied, California's tax collectors would confiscate most of the gold anyway.

Paramount has yet to decide whether to move. It may still negotiate concessions from state and city officials and remain in Hollywood. However, the writing is on the wall, and it is increasingly being written hundreds of miles away from Hollywood.

Coinasity's Take

The potential departure of Paramount from California underscores a broader trend of businesses and talent fleeing high-tax, high-regulation states for more business-friendly environments. This shift could have significant implications for the entertainment industry and the economies of states like Texas and Tennessee. As the crypto and blockchain sectors also seek regulatory clarity and lower taxes, states that welcome innovation will likely attract more investment and talent. California risks losing its status as the epicenter of entertainment and technology if it doesn't address its fiscal policies.