The global film and TV production industry experienced a notable 20 percent decline in output during the second quarter of this year compared to 2022.
Domestically, however, film and TV shoots saw a 30 percent uptick from the same period last year, though this rise is influenced by the previous year’s production halt caused by the Hollywood writers’ strike, which lasted from May to September 2023.
Many productions have moved to other states or countries that offer more generous tax incentives, reducing the number of projects being filmed in traditional film hubs such as Los Angeles.
Feature films have faced significant challenges, even as TV series production worldwide rose by 20 percent compared to the second quarter of 2023. In contrast, the number of movie shoots decreased by 18 percent this year. According to the ProdPro study, the tepid recovery in production, particularly for feature films, is partially due to concerns over a potential crew member strike in 2024.
Earlier this year, industry experts speculated that studios were cautious about green-lighting projects due to fears of another work stoppage. However, the likelihood of a crew member strike has diminished after the industry’s largest below-the-line union reached a contract agreement with studios and streaming services.
Meanwhile, the Hollywood Basic Crafts coalition, representing various other below-the-line workers, is still negotiating with companies. Current crew member agreements are set to expire on July 31.
The financial landscape for entertainment workers remains challenging as studios cut back on production to recover from the streaming wars’ financial toll. The era of “peak TV,” which saw the debut of 600 scripted series in a single year, has ended; movie theaters are still struggling to reach pre-pandemic attendance levels; and Hollywood studios have been cutting back on production spending to make their streaming services profitable. This period of austerity follows years of heavy investment during the streaming wars, leading to financial losses that studios are now trying to recover from.
Los Angeles, despite losing some ground to other U.S. and international production hubs offering better tax incentives, remains the leading city for domestic film and TV employment, followed by New York, Atlanta, Chicago, and San Francisco.
ProdPro’s report highlighted studios’ spending patterns, revealing a commitment of $11.3 billion to film and TV productions in the second quarter of 2024. This represents a 39 percent increase from the same period in 2023 but remains 20 percent below the spending levels of 2022. The report noted that returning episodic projects and mid-budget studio films have attracted the most investment.
Notable productions that commenced in the second quarter of 2024 include Amazon MGM’s “Project Hail Mary,” starring Ryan Gosling and shooting in London; Ryan Coogler’s “Grilled Cheese,” featuring Michael B. Jordan and filming in New Orleans; Amazon MGM’s “Mercy,” with Chris Pratt at Culver Studios in Los Angeles; HBO’s “Game of Thrones” spin-off “A Knight of the Seven Kingdoms” in Belfast; and Amazon Prime Video’s “Blade Runner 2099,” starring Michelle Yeoh and shooting in Eastern Europe.
Although there was some rebound in production after the 2023 strikes, the recovery has been slow, especially for feature films. The industry is still grappling with the aftermath of the strikes and the financial strain they caused.
