As we get ready for the Oscars Sunday night, a new report from an LA think tank says California is losing its stranglehold on the film industry -- but, it's not too late to act.

California lost more than 16,000 film jobs between 2004 and 2012. And the exodus is still happening -- thanks to major tax breaks from states like New York, New Mexico, and Louisiana.

"California isn't doing something right, we're offering incentives but not incentives that are working," said Kristen Keough, one of the authors of the new report from the Milken Institute. 

The report suggests ways that California can keep the film industry in state and still offer tax incentives that work for everyone.

"We're not going to be offering 40 percent, we're not going to offer as high even as New York with 35 or 30 percent, we want the projects that are willing to stay here, but can't because of cost," she said. 

Milken Institute Report