In recent years, the film industry in Hollywood, Los Angeles, has faced numerous challenges due to rising housing prices in California, high inflation, and declining revenues from film and television production. As a result, some industry professionals are considering relocating to other states that offer tax incentives. The severe wildfires in Los Angeles this January destroyed the homes and properties of some film workers, which may have been the final straw prompting their departure from the city, further impacting Hollywood's film industry.
According to a report by The New York Times, film production projects in LA dropped to near-historic lows last year, only slightly better than during the pandemic in 2020. FilmLA, the local film permitting office, reported that the number of location shooting permits issued last year was at a new low since 2020, with the total number of shooting days being only 60% of the peak in 2016. The shortage of work threatens the livelihoods of many grassroots actors and crew members, while those in the food service, driving, and construction industries, who depend on the entertainment sector, are also affected.
Faced with operational difficulties, major entertainment companies have begun layoffs to reduce costs. Paramount Global announced in August of last year that it would cut 15% of its U.S. workforce and write down US$6 billion (approximately HK$46.5 billion) from its assets. This round of layoffs impacted about 2,000 employees, particularly those in the marketing and communications departments, as well as those in finance, legal, technical, and other support roles.
Disney announced in September of last year that it had laid off about 300 people globally, with further layoffs possible in the future. Affected employees were primarily located in the U.S. across various departments, including legal, human resources, finance, and communications.
Aerial Photographer Works Only 22 Days a Year
At the onset of the streaming wars in 2012, a part-time actor and aerial photographer in Hollywood turned his passion for flying drones into a profitable business, creating smooth aerial shots for films and TV shows for Netflix, Amazon, and Disney for the past ten years. However, his situation has drastically changed in recent years. His drone company was operating almost daily before the 2023 Hollywood actors' and writers' strike, but since the strike ended, he has only operated the drone for 22 days within a year and participated in just 10 days of acting work, with earnings barely covering his gas expenses for driving from Las Vegas to Los Angeles.
After the strike in 2023, Hollywood workers hoped their schedules would be filled again, but for many, the situation has only worsened. According to a report from FilmLA, the number of film productions in the third quarter of 2024 decreased by 5% compared to the same period in 2023.
Data from the U.S. Bureau of Labor Statistics indicates that since the Writers Guild of America strike began in May 2023, film and recording work in LA has decreased by 15%, casting a shadow over the local economy. According to the Los Angeles County Economic Development Corporation, the entertainment industry contributes over US$115 billion (approximately HK$892.6 billion) annually to the local economy, creating 681,000 jobs. Many of these jobs are linked to broader sectors, including food service providers, dry cleaners, and florists. Local officials have stated that these jobs largely depend on the volume of filming in Los Angeles.
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