The Economics Behind Sheridan's Texas Move

Why Texas Will Beat LA at Film Production

Property owners in Malaysia sometimes ask if they need to pay us to have their location featured in our films.

Compare that to Los Angeles, where my friends complain about burned-out property owners who've been damaged by too many productions. The contrast tells you everything about why Taylor Sheridan just invested $450 million in a Texas studio complex.

I built Wave Films across Singapore, Malaysia, and the Philippines instead of traditional hubs like LA or New York. The decision wasn't just about costs.

It was about room to grow.

Why Enthusiasm Beats Saturation

Saturated markets create friction. Emerging markets create opportunity.

In Asia, people get excited about participating in film projects. Local businesses want to collaborate. Governments actively support productions rather than just tolerate them.

Sheridan's Texas investment taps into this same dynamic. Texas increased its film incentive funding from $200 million to $300 million every two years until 2035, creating the predictable support structure that productions need.

The 450,000-square-foot facility with six soundstages isn't just infrastructure. It's Texas saying they want to win this competition.

How Regional Studios Create Economic Momentum

Regional production hubs generate economic upside for entire communities, not just studios.

When we expanded into Malaysia, we didn't just bring production dollars. We created partnerships with local vendors, hired regional talent, and sparked interest from other international productions.

The same multiplier effect drives Texas's strategy. Fort Worth's growing status in the film industry demonstrates how strategic incentive programs create positive feedback loops.

One major studio attracts supporting businesses. Supporting businesses attract more productions. More productions justify infrastructure investments.

This cycle doesn't happen in oversaturated markets.

Location Decisions Beyond Tax Breaks

Production location decisions increasingly favor regions offering competitive advantages beyond just tax breaks.

Texas provides diverse filming locations, lower operational costs, and most importantly, communities excited about hosting productions. The state's commitment to consistent incentive funding addresses the variability that previously made producers hesitant.

California still has unmatched workforce depth and century-long industry leadership. But it faces the same saturation challenges I encountered when considering LA expansion.

Why compete for overpriced, burned-out resources when eager markets offer better economics?

What This Means for Smaller Production Companies

Regional studios democratize production opportunities.

Smaller production companies like Wave Films can leverage these emerging hubs to compete with larger players. Lower costs and enthusiastic local support level the playing field.

International productions benefit from diverse locations and communities that view film projects as economic opportunities rather than disruptions.

The decentralization trend that accelerated during the pandemic isn't reversing. It's expanding.

The Future Belongs to Regional Hubs

Sheridan's Texas investment represents more than infrastructure expansion.

It signals a fundamental shift in how the industry thinks about production location. Success comes from combining economic incentives with community enthusiasm and strategic infrastructure investment.

The model works. I've seen it across Asia, where eager participation replaces the burned-out attitudes common in traditional hubs.

Texas just became the latest region to crack this code. Other states are watching.

The geography of film production is changing, and enthusiasm matters as much as economics.