While the epidemic and recent strikes have dealt Hollywood blows, other factors may prevent it from returning to its former glory very soon, according to a recent analysis.
The motion picture and sound recording businesses in Los Angeles County are still roughly 20% less than they were before the pandemic, hovering around 100,000, according to The Los Angeles Times. The Bureau of Labor Statistics reports that this is a 30-year low, omitting the early months of the COVID-19 pandemic and last year’s strikes.
Though disruptions caused by the pandemic and strikes are likely to have contributed to the low numbers, cheaper production costs in cities such as New York City or Atlanta, which offer massive tax credit incentives, have also played a role, according to the Los Angeles Times, citing interviews with numerous industry insiders. In certain circumstances, LA’s high cost of living has compelled lower-wage workers to look for work in other cities and industries.
“I feel like I’m starting my business all over again,” said Ryan Johnson, owner of the special effects company NewRuleFX. Johnson told the LA Times that he had taken out loans and increased credit to keep his employees employed.
HOLLYWOOD RESIDENTS ARE FRUSTRATED WITH LOCAL LEADERS OVER THE HOMELESS PROBLEM.
READ MORE: Hollywood Contraction: How Writers React To Ongoing Industrywide Cost-Cutting
According to the Los Angeles Times, California’s share of the national motion picture and sound recording business has decreased from about 40% to less than 30% during the last decade. Meanwhile, places outside of Los Angeles have recovered the majority of their film and television jobs.
Though other cities’ entertainment sectors are performing better, several insiders questioned by the LA Times believe this is a more concerning indicator for the business.
“The theatrical feature picture served as the foundation for Hollywood’s international popularity in the twentieth century. “That appears to be coming to an end now,” UCLA film historian Jonathan Kuntz explained. “It seems the audience has moved on to other things.”
Former Disney executive Charlie Fink emphasized changing audiences, stating, “People have other things to do with their screens.”
“They prefer to spend their time on YouTube and play video games on their phones,” he stated. “That’s the problem for Hollywood.”
READ MORE: OpenAI Is Heading To Hollywood To Pitch Their Revolutionary “Sora”
According to the Los Angeles Times, new technology, as well as the rise of streaming services like Netflix and internet platforms like YouTube, have changed the film distribution landscape. While Hollywood has previously witnessed technological developments affect the industry, experts have expressed alarm about the sheer number of additional elements.
“The key thing here is that you have so many of these things happening at once that it’s really hard for anybody to feel confident,” Milken Institute economics analyst Kevin Klowden said. “There’s a very, very real question right now on the business side that’s playing out, because nobody’s quite sure of the economics.”
HOLLYWOOD EXECS SAY AI STEALS JOBS BUT CANNOT DO THE JOB OF TRUE ARTISTS: ‘I want to work with humans.’
Writers on strike in Los Angeles carry signs that underline things they take issue with, with one sign reading “A.I. THIS SIGN WROTE”
Writers and actresses have expressed anxiety about being supplanted by AI in the future. (David Mcnew)
The Los Angeles Times article follows fears about artificial intelligence replacing Hollywood labor after new technology was developed to produce scripts and even replicate an actor’s image and likeness. AI was one of several problems that sparked the Writers Guild of America and Screen Actors Guild strikes in summer 2023.
Radiant TV, offering to elevate your entertainment game! Movies, TV series, exclusive interviews, music, and more—download now on various devices, including iPhones, Androids, smart TVs, Apple TV, Fire Stick, and more.
