The decline of Hollywood as the epicenter of the entertainment world is accelerating. This is garnering the attention of the politicians in the state, including the governor.
What is being proposed, however, is insufficient to solve the problem. As stated on numerous occasions, this is driven by technology, not the other reasons that are commonly mentioned.
For this reason, any solution will never cure the ills confronting Hollywood.
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Hollywood Being Destroyed In Los Angeles
California is about to lose almost all of the entertainment industry. This is going to take a huge chunk of the annual revenue with it. That is going to be a nightmare for the area surrounding Los Angeles.
The problem is we are not dealing with some far out, down the road issue. It is happening right now.
Just look at this tidbit:
According to FilmLA’s most recent Q3 2024 report, unscripted production has been declining in LA – by 56.3 percent in the last quarter alone.
The amount of production lost was down by more than 50%, in one quarter. This is not over the course of 5 or 10 years. It was in roughly 90 days.
Could this be a blip? Certainly. It does, nevertheless, align with other trends. In fact, it was not confined to unscripted production.
In fact, the summer drop in reality production was so steep that it more than accounts for the entire loss seen in aggregate across all filming categories over the past year. This should give all Californians pause, as it has very real consequences for our local economy and the livelihood of local industry workers.
Exactly as we have stated for the last 16 months.
Gavin Newsome, the governor of California, put forth a plan of $750 million to aid the industry. This is being panned as far short of what is needed. That is likely correct. Other states are more aggressive.
Technology Killed Hollywood
Here is a newsflash: when your industry is getting disrupted, do not go on strike.
Hollywood suffered two strikes back in 2023. They overlapped, causing major upheaval. Many thought the unions struck great deals. Here we sit, 16 months later, and it is realized they screwed themselves.
Animation is in the process of leaving Hollywood completely. This is the first division that can be moved. People sitting in front of a computer can happen anywhere. We are also seeing the major animation companies being rivaled by others. Competition will get heated as technology makes it easier to enter the game.
Other aspects of the business will follow suit. Companies are popping up in Georgia, Oklahoma, and Nevada. This doesn't even take into account a company like Sony, which is shifting a lot of its production to its Japanese division.
Florida is working on getting into the game with a major studio development being constructed just outside Orlando. There is no word who is behind the project at this point. Could it be Disney, preparing to move operations or someone entirely different?
Technology is the great equalizer and here is an industry that is finding out about it. Each time a Hollywood star mentions that AI will not be able to do something, it usually is not long before that is proven false. Some, like Aston Kutcher, have an idea of how technology operates. Of course, when he spoke out, he was slammed by his colleagues. Yet, when Alec Baldwin states that AI will not be able to do what he does, he is widely applauded.
Talk about sticking your head in the sand.
What is fascinating about writing these articles is that it becomes an ongoing narrative of what is taking place. We are looking at a massive shift in the entertainment industry. It is happening in real time, obvious to anyone who steps back and honestly looks at what is taking place.
It is rare we get to see something like this happening to such a degree. My prediction is we are in for most disruptions of this type. Other industries will be impacted in a similar manner. It will start slow, then accelerate to the point where it is foolish to deny what is taking place.
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