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Hollywood Studio Giant Pulls Back: Hudson Pacific Slashes Operations Amid Streaming Slowdown

A Shift in the Industry Landscape

A major Hollywood real estate and production firm is making drastic cuts to its studio operations, signaling a sharp reversal in the once-booming streaming era. Hudson Pacific Properties, which owns Quixote Studios, is shuttering key soundstage facilities and shedding jobs after years of rapid expansion.

The decision comes as streamers and studios slash budgets, leaving production spaces underutilized. The company will exit Georgia and New Mexico, close most of its Los Angeles soundstages—including its flagship West Hollywood location—and lay off about 70 workers in Atlanta and LA.

The End of an Era for Quixote Studios

Hudson Pacific acquired Quixote in 2022 for $360 million, just as streaming demand peaked. Now, the firm is winding down most of its soundstage business in Los Angeles, including:

• Quixote West Hollywood (formerly a major commercial studio)
• Van Nuys location (formerly Chandler Valley Center Studios)

The only LA studio remaining open? Griffith Park Studios, which already has a tenant in place.

The company’s internal memo bluntly stated: “We are winding down most of our sound stage business in Los Angeles.”

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Financial Fallout and Strategic Retrenchment

The pullback is expected to save $21 million to $27 million annually by reducing Quixote’s operations in Atlanta and relocating equipment to higher-demand markets like Los Angeles and New York.

But the numbers tell a stark story:

• Hollywood soundstage leasing: 96% occupied
• Quixote’s stages: Only 53% leased

Hudson Pacific is prioritizing higher-margin ventures, including its vehicle fleets, production supplies, and office portfolios, over underperforming leased soundstages.

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A Broader Industry Contraction

The decline isn’t isolated. Original TV series premieres have dropped for three consecutive years, with an 11% decrease projected in 2025 compared to 2024.

Even Hudson Pacific’s earlier acquisitions—Star Waggons (2021, $222 million)—are feeling the squeeze as production orders dwindle.

Yet, not all is lost:

• Sunset Studios in LA remains a cornerstone, anchored by a Netflix deal through 2031.
• New Jersey is emerging as a production hotspot in early 2026, though California still leads overall.

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What’s Next for Hudson Pacific?

While the studio business shrinks, core services—equipment rentals, fleet management, and supply logistics—will continue operating. The company vows to work closely with clients to ease the transition.

As the streaming boom fades, Hudson Pacific is recalibrating—abandoning costly, low-demand leases in favor of leaner, more profitable operations.

The question remains: Is this the new normal for Hollywood’s studio economy?