Hollywood faces layoffs and canceled projects post-strikes

BBC highlights that Hollywood has recently experienced dramatic shifts in its landscape, particularly with the rise of streaming platforms that revolutionized how audiences consume content.

Michael Fortin was at the forefront of Hollywood's streaming boom. The actor and aerial cinematographer turned his passion for drone flying into a thriving business in 2012, right as the streaming wars began. For ten years, he captured stunning aerial footage for films and TV shows on platforms like Netflix, Amazon, and Disney. Now, he faces the possibility of homelessness once more.

After being evicted from their Huntington Beach home, he and his family relocated to Las Vegas, only to be forced out of their new apartment due to financial strain from rising costs in Southern California. “We were saving for a house, we had money, we did everything right,” he reflects. “Two years ago, I didn’t think twice about spending $200 on dinner for my family. Now I worry about spending $5 on a meal at McDonald's.” For over a decade, business thrived in Hollywood as studios raced to keep up with newcomers like Netflix and Hulu. However, everything changed in May 2023 when Hollywood's writers went on strike, bringing the momentum to a standstill.

The strikes lasted for several months and marked the first time since the 1960s that writers and actors united, effectively halting Hollywood production. However, instead of rebounding, production has stagnated in the year since the strikes ended. Many projects have been scrapped, and overall production has diminished in the city, leading to widespread layoffs, including recent job cuts at Paramount, which is aiming to reduce its workforce by 15 per cent ahead of its merger with Skydance. 

In August, unemployment in the US film and TV sector stood at 12.5 per cent, though many believe the true figure is higher, as numerous workers either do not qualify for unemployment benefits or have exhausted them after months without work. Overall, US productions in the second quarter of 2024 fell by about 40 per cent compared to the same time in 2022, while global production dropped by 20 per cent, according to ProdPro, which monitors TV and film outputs. This translates to fewer new movies and shows for viewers. 

Experts argue that the streaming boom was not sustainable, and studios are grappling with how to achieve profitability in an era where audiences no longer rely on commercial-funded cable TV.   “The content bubble has burst,” states Matthew Belloni, founder of Puck News, which reports on the entertainment industry. “Crisis is an apt term. While I try to avoid alarmism, it reflects the reality people are experiencing.” Part of the previous boom was driven by Wall Street, where tech giants like Netflix experienced record growth, and studios like Paramount saw their stock prices soar with the launch of their streaming services.

By Naila Huseynova