Production companies are moving and leaving California in the dust.

Industry experts say the film industry is slowing leaving California, and mainly Los Angeles to take advantage of incentives, like huge tax breaks, Hollywood has yet to offer.

Tinseltown is losing out to places like New York and Atlanta, and even the adult film industry is leaving due to the voter-backed measure requiring condoms to be used in all locally produced adult films.

The number of film permits in LA's porn industry has dropped from 500 in 2012 to only 24 last year.