ProdPro finds that the number of global productions dropped 20%
The impacts of Hollywood’s cutbacks in production spending are being felt as the number of global film and television productions is down 20% from 2022 and approximately 40% in the United States, according to a new report by production technology and research company ProdPro.
The report, which was first published by The Los Angeles Times, found that Hollywood studios spent $11.3 billion on productions in the second quarter of 2024, down approximately 20% from the same period in 2022. That figure is up around 30% from 2023, but that can be attributed to the anticipation of and the start of the Writers Guild of America strike last May.
Even when compared to the strike summer, the number of feature film productions that have started worldwide has dropped. ProdPro counted 261 feature films worldwide that started principal photography in Q2 2023, while the Q2 2024 count dropped 18% to 214.
Industry insiders told TheWrap that they believe one factor in the decrease in productions has been anticipation of another strike staged by IATSE or the Hollywood Basic Crafts that would force productions to shut down.
Throughout Q2, IATSE was in lengthy talks with studios on new mutual bargaining agreements, reaching a deal at the end of last month. Members of the crew workers’ union will vote to ratify the new contracts next week.
The Basic Crafts, meanwhile, are in the midst of negotiations on their own contracts. While a strike authorization vote has not been held by any of the unions in the basic crafts, they have informed the Alliance of Motion Picture and Television Producers (AMPTP), which represents the studios in labor talks, that they will not extend the expiration date of their contract past July 31.
Basic Crafts to Studios: ‘Be Prepared to Bargain and Care About Our Issues’
Even if these contracts are ratified, leading to more productions, a return to pre-strike levels is still unlikely as studios are cutting back on spending to make their streaming services profitable. For several years, the entertainment industry benefitted from an arms race among the studios as they tried to fill their fledgling streaming services with a diverse array of original films and TV shows.
But the new period of austerity in Hollywood has led to a significant drop in employment opportunities for the industry’s workers, particularly in Los Angeles, where union members are struggling to keep up with high living costs. That struggle has been compounded by the exodus of productions to other states and countries in search of more generous tax incentives.
While Los Angeles remains the top driver of production employment even ahead of rising competitors like New York, Atlanta, Chicago and Albuquerque, that new competition, along with the rising costs and the toll the strikes have taken on financial reserves has put Los Angeles’ entertainment workers under new strain.
Article originated in: The Wrap
