Because of it's ideal and sizable location, shooting movies in Hollywood has become expensive. More and more productions are heading to Louisiana because they're offered tax breaks, which makes the overall budget cheaper. Louisiana wants the money that would come along with a movie production, so they open the state's doors with open arms.
California is probably one of the hardest states to do business in. Other states, with more Republican governments can provide positive business environments for film makers. So, movies will be cheaper. Plus, everyone knows what Hollywood looks like. California is stereotypical. Lousiana provides some much needed geographical variety for filmmakers at a lower cost. Beating Hollywood seems to be entirely possible.
Hollywood has some classic movies and is so well-known as the movie capitol of the world. Because this is where film-making originated in the U.S., it would be very difficult for any other place to outshine Hollywood. There are just too many famous actors and movies made in Hollywood. Louisiana may have some potential, but it will never be Hollywood.
Hollywood has been around for a very long time and has earned a reputation. Though it would be nice to see it get some competition I believe Louisiana will not be able to succeed in the long run in providing enough competition to stay afloat. The movie business is kind of monopolistic because it is so hard for up and coming ideas to break through.