It is claimed the good times ground to a halt in May 2023, when Hollywood’s writers went on strike. The strikes lasted multiple months and marked the first time since the 1960s that both writers and actors joined forces – effectively shutting down Hollywood production.
But rather than roaring back, in the one year since the strikes ended, production has fizzled. Projects have been cancelled and production was cut across the industry as jobs have dried up, with layoffs at many studios – most recently at Paramount. They had a second round of layoffs this week, as the storied movie company move to cut 15% of their workforce ahead of a merger with the production company Skydance.
Unemployment in film and TV in the United States was at 12.5% in August, but many think those numbers are actually much higher, because many film workers either do not file for unemployment benefits because they’re not eligible or they’ve exhausted those benefits after months of not working.
As a whole, the number of US productions during the second quarter of 2024 was down about 40% compared to the same period in 2022.
Globally, there was a 20% decline over that period, according to ProdPro, which track TV and film productions. That means less new movies and binge-worthy shows for the world.
Part of the boom was fueled by Wall Street, where tech giants like Netflix saw record growth and studios, like Paramount, saw their share prices soar for adding their own streaming service offers.
But experts say the streaming boom wasn’t sustainable. And studios are trying to figure out how to be profitable in a new world when people don’t pay for cable TV funded by commercials.
And along with the streaming bubble bursting, some productions are also being lured away from California by attractive tax incentives in other states and countries.
Even LA Mayor Karen Bass is alarmed because after all, the entertainment industry is critical to the economic vitality of the Los Angeles region. Recent data shows the entertainment industry contributes over $115 billion annually to the local economy, with an employment base of over 681,000 people.
Still, there are industry observers who are optimistic that production will be ramping up soon. After all, summer movie releases (e.g., "Inside Out 2", "Despicable Me 4", "Deadpool & Wolverine") have had box office successes and are rekindling optimism.
Even so, box office revenue is still below pre-pandemic levels. So far this summer, theaters across the US sold 274 million tickets, an 18% decline from last summer, according to industry data firm EntTelligence. That pales in comparison to the 406 million tickets sold in the summer of 2019.
Will Hollywood fully recover? We shall wait and see...
Ibrahima Konaté headed home his first ever Premier League goal (45+2) and Mohamed Salah converted a penalty (61) as Liverpool climbed to the top of the Premier League table with a 2-1 victory over struggling Wolverhampton Wanderers on Saturday.
The Reds now have 15 points after six games, one more than both Manchester City and Arsenal.
Their next two games are on Wednesday when they host Bologna in a Champions League match and October 05 when they travel to Selhurst Park to confront Premier League's Crystal Palace.
No comments:
Post a Comment