The film and television studio business is entering a new phase, one defined less by expansion and more by survival.

After years of peak-TV optimism fueled a global building boom, the market has cooled. Production levels in the U.S. remain uneven following the 2023 strikes, while international competition from countries offering aggressive tax incentives continues to pull projects overseas. The result is a stark recalibration: more stages than ever, but not enough consistent demand to fill them.

For some operators, the shift has been brutal.

The shakeout is clearest in Los Angeles. In 2021, Hackman Capital Partners spent $1.85 billion to acquire the 55‑acre Radford Studio Center, convinced the streaming boom would sustain demand for space. As production cooled, occupancy fell and by mid‑2025 the lot’s revenue covered only about 21 percent of its debt service . Hackman ultimately defaulted on a $1.1 billion mortgage . Now lenders led by Goldman Sachs are selling the property, with Netflix poised to pay roughly $330 million to $400 million —a fraction of its 2021 price and a stark sign of how far studio valuations have fallen.

It’s a cautionary tale that has rippled across the industry: when studios are acquired at peak valuations by investors without deep roots in physical production, the margin for error disappears. In a business inherently defined by cycles, timing isn’t just important, it’s everything.

But the broader narrative isn’t one of universal decline.

In fact, a growing number of operators are quietly proving that there’s another path forward, one rooted not in scale, but in adaptability. Among the most notable examples is Brooklyn-based Be Electric Studios, which has emerged as a case study in how to not just survive, but thrive in a tightening market.

Rather than competing with mega-lots on size or spectacle, Be Electric has focused on operational precision, building its business around the real, evolving needs of today’s production community. As an independent and nimble operator, the company is less focused on short-term pricing and immediate returns, and more committed to building long-term relationships — an approach that continues to pay dividends over time.

Their approach can be broken down into five key pillars.

Strategic Growth Through Client Needs

At a time when many developers chased large, high-end studio campuses designed to impress investors, Be Electric took a different approach, one grounded in production reality.

Founded and operated by Andrew Stern, a former photographer who transitioned into production with deep experience in physical production, the company has built its footprint by listening closely to what producers, line producers and creators actually need: flexible space, accessible locations and cost-effective solutions.

Instead of prioritizing luxury or scale, Be Electric expanded into neighborhoods where productions could operate efficiently, offering practical environments over premium ones. It’s a subtle but critical distinction, and one that reflects a production-first mindset rather than a real estate-first strategy.

In today’s market, that difference is proving decisive.

Selling to Every Content Vertical

The days of relying solely on studio tentpoles or long-running series are over.

Be Electric has embraced a broader definition of “production,” actively programming its stages across a wide spectrum of clients, from major studios to commercial shoots, independent films, podcasters, and the rapidly growing creator economy. Be Electric recently worked on The Rip, the Matt Damon and Ben Affleck film for Netflix produced by Artists Equity, building a large pop-up LED volume and executing virtual production for approximately 20 minutes of the film, including all the armored car and chase sequences, underscoring the company’s ability to support high-profile studio projects alongside a diverse range of content.

This diversified approach ensures consistent utilization, even as traditional production pipelines fluctuate. Just as importantly, it positions the company at the center of emerging content ecosystems, building relationships with the next generation of producers long before they scale.

In a market where idle stages can quickly become liabilities, that constant flow of activity is a competitive advantage.

Next-Gen Tech, Led by Filmmakers

Technology has become a key differentiator in the studio business, but execution matters.

Be Electric’s virtual production capabilities are built around two distinct solutions. Its permanent LED volume at Studio A, featuring both a primary wall and LED ceiling, is designed for efficiency and accessibility. It supports small- to mid-sized shoots such as commercials and car process work. It offers a 1.9mm pixel pitch, the highest-resolution virtual production stage in New York City.

Complementing this is the company’s “deploy-anywhere” model, which enables the rapid buildout of custom, large-scale LED volumes on regional stages. These pop-up volumes can be fully designed, installed, and operational within 24 to 48 hours, giving productions the flexibility to bring virtual production wherever it’s needed.

At the center of it all is leadership with real production experience. Virtual production operations are led by Justin Lee, whose background extends beyond equipment into the realities of filmmaking. For producers navigating tight schedules and complex builds, that kind of expertise isn’t just helpful, it’s essential. When a line producer runs into a wall on day one of a build, having a technical operator who actually understands the filmmaking process is invaluable. It’s exactly why they boast credits on major Netflix and FX/Hulu productions.

The Marketing Superpower

In an industry built on relationships, visibility is no longer a bonus — it’s the front door.

A new generation of creators and producers isn’t starting their search on Google. They’re opening Instagram and TikTok. They’re scrolling grids, watching reels and evaluating spaces based on what they can see, feel and trust before they ever pick up the phone.

Be Electric understands this shift and leans into it.

While larger, corporate-owned facilities often require layers of approvals to share even basic behind-the-scenes content, Be Electric operates with speed and authenticity. Its social channels deliver a steady stream of real-time insight into the stages, the technology and, just as importantly, the work itself.

That visibility extends beyond social. Be Electric also publishes a monthly newsletter highlighting the latest productions filming at the facility, new technology being incorporated, and personal moments that help the production community get to know the team behind the stages.

Because in today’s market, the first layer of trust isn’t built in a meeting — it’s built on the grid.

By showcasing the kinds of productions moving through their spaces and the people behind them, Be Electric creates immediate familiarity with both established clients and emerging creators. It’s a modern, transparent approach to marketing — and one that’s proving to be a powerful competitive advantage.

Policy Leadership and Industry Advocacy

Another critical, if less visible, component of Be Electric’s resilience has been Andrew Stern’s leadership in industry advocacy. Stern served as co-president of the Production Initiatives Association (PIA) for four years and co-founded the Coalition for American Production (CAP) alongside Rudy Callegari of Edge Auto Rental. Through PIA and CAP, Stern has helped lead lobbying efforts supporting both New York State and federal film and television production incentives aimed at keeping jobs and production spending in the U.S.

Those efforts contributed to a major industry victory in 2025, when New York passed an enhanced film tax credit program that strengthened the state’s competitiveness and helped reinforce confidence in the local production economy. CAP is now actively working in Washington to build bipartisan support for a federal production incentive designed to help bring film and television projects back to the United States and support the broader domestic production infrastructure.

A Tale of Two Strategies

The contrast between facility owners like Hackman Capital and operators such as Be Electric underscores a broader truth about the current moment: the soundstage business is no longer a passive real estate play.

It’s an active, service-driven industry that rewards those who understand production at a granular level and can adapt as that production evolves.

There will always be a place for large, legacy studio lots. But as the market continues to recalibrate, the operators best positioned for long-term success may not be the biggest — they’ll be the ones most in tune with the people actually making the work.