The reduction in Hollywood’s production spending has led to significant decreases in global and U.S. film and television productions.
According to a new report by production technology and research company ProdPro, there has been a 20% decrease globally and an approximately 40% decrease in the United States compared to 2022.
The report revealed that Hollywood studios spent $11.3 billion on productions in the second quarter of 2024. This figure is down 20% from the same period in 2022 but up 30% from 2023, a spike attributed to the anticipation of the Writers Guild of America strike that began in May of last year.
Despite this increase from 2023, the number of feature films starting production worldwide has declined. ProdPro recorded 261 feature films beginning principal photography in Q2 2023, which dropped by 18% to 214 in Q2 2024.
Despite the increase over last year, the total number of productions filming globally in 2024 remains 16% lower than in 2022, and 37% lower in the U.S. The decrease in production activity is expected to persist. Comparing Q2 2024 to Q2 2022, the U.S. saw a decrease of approximately 40% in productions starting principal photography, while globally there was a ~20% decrease.
In terms of scripted TV and film productions, ProdPro reported 344 scripted productions starting principal photography worldwide in Q2 2024, comprising 130 TV series and 214 feature films. There was an 18% decrease in feature films compared to the same period last year.
This drop can be partially attributed to the risk of another strike by IATSE in 2024, making it difficult for indie film producers to secure production bonds. On the other hand, there was a 20% year-over-year increase in TV series production, driven primarily by major studios catching up on lost time to ensure their fall slates are delivered.
Continuing the trend from Q1, delayed productions have driven an increase in committed spend, with a 39% rise from Q2 2023. The most significant increase was seen in projects with budgets ranging from $40M to $100M, including returning episodic projects and mid-budget studio films. However, this figure is still 20% less than the committed spend during Q2 2022.
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Geographically, the U.S. and Canada saw notable increases in the number of series beginning production compared to the previous year. In contrast, the UK was the only region to experience an increase in feature film starts.
The Basic Crafts unions are negotiating their own contracts. Although no strike authorization vote has been held, these unions have informed the Alliance of Motion Picture and Television Producers (AMPTP) that they will not extend their contract expiration past July 31.
Even if these contracts are ratified and lead to an increase in productions, a return to pre-strike levels is unlikely. Studios are cutting back on spending to make their streaming services profitable after years of aggressive content creation to fill their platforms.
This period of financial austerity has resulted in a significant decrease in employment opportunities for industry workers, especially in Los Angeles. The high cost of living and the migration of productions to states and countries with more favorable tax incentives have exacerbated the situation for union members.
Los Angeles remains the leading hub for production employment, surpassing competitors like New York, Atlanta, Chicago, and Albuquerque. However, the increased competition, rising costs, and financial strain from the strikes have placed considerable pressure on the city’s entertainment workers.
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