Hollywood industry in crisis after strikes, streaming wars

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, external, which tracks TV and film productions.

That means less new movies and binge-worthy shows for us.

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.

“The air has come out of the content bubble,” says Matthew Belloni, the founder of Puck News, which covers the entertainment industry. “Crisis is a good word. I try not to be alarmist, but crisis is what people are feeling.”

Part of the boom was fuelled 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.

“It caused an overheating of the content market. There were 600 scripted live action series airing just a few years ago and then the stock market stopped rewarding that,” Mr Belloni says. “Netflix crashed – all the other companies crashed. Netflix has since recovered – but the others are really struggling to get to profitability.”

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. Los Angeles leaders are so concerned about the slowdown that Mayor Karen Bass created a task force last month to consider new incentives for film production in Hollywood.

“The entertainment industry is critical to the economic vitality of the Los Angeles region,” Bass said announcing the plan, explaining it is a “cornerstone” of the city’s economy and supplies hundreds of thousands of jobs.

Recent data shows the entertainment industry contributes over $115bn (£86bn) annually to the region’s economy, with an employment base of over 681,000 people, the mayor said.