Global Production Activity Increased in Q2, Remains Significantly Lower than 2022
The world of TV and film production is always bustling with new projects, innovations, and challenges. In the second quarter of 2024, the industry saw a notable uptick in activity. ProdPro, a global leader in tracking TV and film productions, reported a 22% increase in the number of projects actively filming compared to the same period last year. This might sound like a cause for celebration, but there's more to the story.
The Numbers Behind the Headlines
The United States, a major hub for entertainment, experienced a 30% year-over-year increase in production activity in Q2 2024. However, this spike is compared against a particularly low period in 2023 due to the Writers Guild of America (WGA) strike. The strike had a significant impact, causing a dramatic slowdown in production, making the year-over-year comparison somewhat misleading.
Despite the recent increase, the overall production activity in 2024 remains significantly lower than in previous years. Over the past six months, the number of productions filming globally in 2024 is still 16% lower than in 2022. In the US, this decline is even steeper, at 37%.
Why the Decline?
The entertainment industry saw significant growth during the “Peak TV Era,” a period characterized by an unprecedented number of TV shows and movies being produced to meet the high demand for content. This boom led to an expansion in crew and supplier capacities. However, this rapid growth was not sustainable. Various factors, including labor strikes and economic uncertainties, have contributed to a slowdown.
One of the key factors in the decline is the reduction in the number of productions that started principal photography. In Q2 2024, the US saw a decrease of approximately 40% compared to 2022, while globally there was about a 20% decrease. These numbers highlight the industry's struggle to maintain the same level of activity as in previous years.
The Breakdown: TV Series vs. Feature Films
ProdPro reported that 344 scripted productions started principal photography worldwide in Q2 2024. This included 130 TV series and 214 feature films. While TV series production saw a year-over-year increase of 20%, feature films experienced an 18% decrease.
The increase in TV series production is primarily driven by major studios trying to make up for lost time and ensuring their fall schedules are on track. On the other hand, the decline in feature films can be partially attributed to the looming threat of another strike in 2024. This uncertainty has made it challenging for independent film producers to secure the necessary bonds for production.
Production Budget Analysis
Budget is a critical factor in the production landscape. Continuing a trend from Q1 2024, there was a 39% increase in committed spend from Q2 2023. This increase was most notable in projects with budgets ranging from $40 million to $100 million. This trend was driven by the return of episodic projects and mid-budget studio films. However, it's important to note that the committed spend in Q2 2024 is still 20% lower than in Q2 2022.
The US and Canada saw significant increases in the number of TV series beginning production compared to the previous year. However, the UK lagged in TV series starts but was the only region to see an increase in feature film production.
The Future of Production
The current landscape of TV and film production suggests that lower volumes of production are likely to continue. The industry has had to adapt to new challenges and changes, including shifting viewer preferences, economic pressures, and labor disputes.
For those involved in the production industry, these trends underscore the importance of flexibility and adaptability. As major studios and independent producers navigate these changes, the focus will likely be on strategic planning and efficient resource management to sustain production activities.
In conclusion, while there are signs of recovery in the TV and film production industry, the road ahead remains challenging. The second quarter of 2024 brought some positive developments, but the overall decline compared to pre-pandemic levels is a reminder of the ongoing difficulties faced by the industry. As we look forward, it will be crucial for all stakeholders to continue innovating and adapting to ensure the sustained growth and success of TV and film production globally.
