Hollywood in a Coma: L.A. Lost 40,000 Industry Jobs
The Wall Street Journal reports an unprecedented downward spiral in entertainment, with production at its lowest non-pandemic level since 1995.
The entertainment industry — the economic engine of the Los Angeles area — is no more.
The Hollywood job market is experiencing an unprecedented "downward spiral," and the Wall Street Journal says L.A. County has lost 40,000 jobs in four years.
The industry has shifted from a period of rapid streaming expansion to a strict focus on profitability. There is a dramatic reduction in the volume of movies and TV shows being produced.
The Journal concludes that the recovery many expected to see after the actors' and writers' strikes in 2023 has failed to materialize. Production activity is hitting its lowest levels since 1995, if one excludes the pandemic.
High local costs, aggressive cost-cutting by major studios, and a permanent shift in consumer habits toward social media and YouTube are to blame. The creative middle class — from production managers to set builders — faces prolonged unemployment.
This is leading to a broader economic slump in the Los Angeles area, as businesses close and longtime residents flee a market that many fear may never fully return to its former glory.
That, according to the Wall Street Journal.