Los Angeles’ soundstages once were nearly filled to capacity, as demand for streaming content reached its peak.

But last year, the average annual occupancy rate dropped to 63%, a further indication of Hollywood’s sustained production slowdown, according to a new report.

That’s a decline from 2023, which saw an average regional occupancy rate of 69%, according to the study released Thursday by FilmLA, a nonprofit organization that tracks on-location shoot days in the Greater Los Angeles area. That was the year when dual strikes by writers and actors crippled the local production economy for months.

The strikes ended, but production did not return as expected. The 2024 numbers are far below the average of 90% that was seen between 2016 and 2022.

Entertainment companies cut spending amid worsening economics for movies and TV shows, and those productions that did start up often did so in other states and countries where costs are lower or incentives are better.

The FilmLA study involved 17 studio participants — all of the major legacy studios and several larger independent ones — which, together, represent more than 80% of the 6.6 million square feet of certified stage space in L.A.

The report also shed additional light on the adverse impact of the strikes.

The 1,225 projects filmed in those participants’ facilities added up to just 8,671 shoot days in 2023, the most recent year for which that data was available. That amounted to a decrease of almost 42% compared to the pre-pandemic days of 2019, the report found. Episodic television series, which previously made up about 30% of production in L.A., now make up just 20%.

To entice production back to California, state legislators are proposing to increase its film tax credit to cover up to 35% of qualified expenditures for movies and TV series shot in the Los Angeles region.

Gov. Gavin Newsom also has called for an increase to the state’s film and TV tax credit program. That proposal would more than double the money allocated annually to the program in an attempt to help California better compete with other states’ tax incentives.

California’s tax credit program is at a disadvantage because it does not cover so-called above-the-line costs, such as actors’ pay, which are a substantial portion of movie and TV budgets.

Nonetheless, the California Film Commission announced last month that a record 51 films shooting in the Golden State will receive a government incentive in the latest round. Most of those productions are independent films.