ProdPro finds a 20% drop in global productions.
The impacts of Hollywood's cutbacks in production spending are being felt globally, with film and television productions 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, first published by The Los Angeles Times, revealed that Hollywood studios spent $11.3 billion on productions in the second quarter of 2024. This figure is down about 20% from the same period in 2022 but is up roughly 30% from 2023 due to the anticipation of and the start of the Writers Guild of America strike last May.
Despite the increase from the strike-affected year, the number of feature film productions starting worldwide has decreased. ProdPro counted 261 feature films worldwide that began principal photography in Q2 2023, while the Q2 2024 count dropped 18% to 214.
Industry insiders told TheWrap that the anticipation of another potential strike by IATSE or the Hollywood Basic Crafts unions has contributed to the decrease in productions. These potential strikes could force productions to shut down.
Throughout Q2, IATSE was in lengthy negotiations with studios on new mutual bargaining agreements, reaching a deal at the end of last month. Members of the crew workers' union are set to vote on ratifying the new contracts next week.
The Basic Crafts unions are currently negotiating their contracts. While no strike authorization vote has been held, they have informed the Alliance of Motion Picture and Television Producers (AMPTP) that they will not extend their contract expiration date past July 31.
Even if these contracts are ratified, leading to an increase in productions, a return to pre-strike levels is 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 studios to fill their fledgling streaming services with a diverse array of original films and TV shows.
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 with high living costs. This struggle has been compounded by productions moving to other states and countries offering more generous tax incentives.
While Los Angeles remains the top driver of production employment ahead of rising competitors like New York, Atlanta, Chicago, and Albuquerque, the new competition, rising costs, and financial strain from the strikes have placed significant pressure on Los Angeles' entertainment workers.
