The Los Angeles Economic Development Corp. says Canada’s recently ‘sweetened’ film and TV incentives have successfully compensated for the drop in the U.S. dollar – and are again threatening California’s production industry. In a recent report, the group warns that the combination of runaway productions, pirated DVDs and the drop in box office numbers may quash the state’s upward trend in production employment.

California governor Arnold Schwarzenegger is pushing for a revamp of the state’s incentive package, but the state government has yet to approve any amendments.