Last year, the American actors‘ union SAG-AFTRA went on strike against poor working conditions, marking the first time since the 1960s that writers and actors had joined forces in a strike. The historic strikes paralyzed Hollywood for nearly four months. However, despite a year passing since the strikes ended, production has not picked up again. In fact, it has slowed down, as reported by BBC.
The decrease in productions in the United States during the second quarter of 2024 was approximately 40% compared to the same period in 2022. Globally, there was a 20% decline during the same period, according to ProdPro. This means fewer new movies and series for viewers, as warned by BBC.
Unemployment in the film and TV industry in the US was at 12.5% in August. Many believe there is a significant underestimation since many film workers do not apply for unemployment benefits, either because they are not eligible or because they have already used these benefits after months without work. The consequences of the strikes were also felt outside of Hollywood. In August, The Guardian reported that over half of the UK’s film and TV workers were still jobless.
Studios are now grappling with how to be profitable while people are no longer paying for ad-supported cable TV. „Crisis is a good word. I try not to be alarmist, but crisis is what people are feeling,“ says Matthew Belloni, founder of Puck News, to BBC.
Tech giants like Netflix contributed to a boom on Wall Street, enjoying record growth and rising stock prices. However, this eventually led to an oversaturation in the content market, no longer being rewarded by the stock market. „Netflix crashed – all the other companies crashed. Netflix has since recovered – but the others are really struggling to achieve profitability,“ Belloni observes.
The landscape of the entertainment industry is shifting, and the challenges faced by Hollywood are significant. The future remains uncertain as studios and streaming platforms navigate the changing demands of audiences and the evolving market trends. As the industry continues to adapt and innovate, only time will tell how Hollywood will emerge from this period of upheaval.