Let’s Dive Right In!
Have you ever wondered how your favorite film or TV show is made? There’s more than just actors and directors involved. A whole lot of money and many jobs are on the line with each production. Recently, the world of film and TV productions has hit a major setback, seeing a worldwide drop of 20% from two years ago.
Depicting The Downswing
Global film and TV productions have dipped by a fifth compared to 2022, with the US bearing the brunt, experiencing a huge 40% drop. The company behind this study, ProdPro, is into researching how movies are made and the tech used in production. This paints a picture of some tough movie-making times.
Dollars and Cents Know the Story
Here’s something interesting. Productions in Hollywood splashed out a whopping $11.3 billion in the second quarter of 2024! That’s a 20% drop from two years ago but a 30% rise from 2023. Apparently, rumors of a potential strike by the Writers Guild of America earlier this year caused a spending surge.
Box Office Burnout
Due to this decreased spending and other factors, fewer films are being made. According to ProdPro, 261 big-screen films worldwide began main shooting in 2023 Quarter two, but this dropped by an alarming 18% in 2024 to just 214.
Strike Slope
The production slide hasn’t just been about money. It also seems fears of an ensuing strike by the International Alliance of Theatrical Stage Employees (IATSE) or the Hollywood Basic Crafts unions have played a significant role.
Unrest on the Unions’ Front
Throughout the second quarter of this year, the IATSE was hashing out new deals with studios. They successfully landed an agreement last month. Now crew member union members must decide on these new contracts next week.
Meanwhile, the Basic Crafts unions are engaged in contract discussions. They’ve made it clear to the Alliance of Motion Picture and Television Producers (AMPTP) that they won’t stretch their contract beyond July 31. These Union dramas could mean major production shut downs.
The Streaming Struggle
Ironically, even if the suggested contracts go through and production ramps up, a return to pre-strike numbers seems unlikely. Why? As more and more studios focus on making their streaming platforms profitable, production spending is being constrained.
Impact on Employments
The dip in Hollywood spendings isn’t just hurting film buffs and TV addicts. It’s hitting the job market hard. As studios are spending less on productions, employment opportunities in the industry, especially in Los Angeles, are dwindling. The high cost of living in Los Angeles, coupled with productions shifting to states or countries with bigger tax incentives, hasn’t made life any easier for industry workers.
LA Under Pressure
Los Angeles was once the top dog for production jobs, beating out up-and-coming rivals like New York, Atlanta, Albuquerque, and Chicago. But with new contenders, high costs, and the stress of strikes, LA’s entertainers are really feeling the pinch. The future may just see a reshuffling of global production centers.
Lights, Camera… Cutbacks!
The film and TV industry is in a state of upheaval. From studio spending downturns to Union disruptions, the challenges are many. And with the rise of streaming pushing studios to focus on profits and reduce costs, everyone from crew to production workers is feeling the strain. It’s going to be an interesting catch to see how this bigger picture drama turns out!
For more details, visit Project Casting Blog on https://www.projectcasting.com/blog/news/us-film-and-tv-production-down-40-from-pre-strike-level-report-says/