US TV Production is experiencing a significant downturn, marking a stark contrast to the peak TV era of recent years. This decline has far-reaching implications for the entertainment industry, from job losses to production delays.
A new report by ProdPro has revealed that production activity in the United States has plummeted by approximately 40% in the second quarter of 2024 compared to its peak in 2022. This downturn follows a similar trend globally, with production down by about 20% in the same period.
The Aftermath of Strikes
The Hollywood writers’ strike, which concluded in September 2023, has had a lingering effect on production. While domestic film and TV shoots saw a 30% increase in the second quarter compared to 2023, this growth is largely attributed to the disruption caused by the strike.
Movies, in particular, have been hit hard. The number of movie shoots has decreased by 18% this year, while TV series production has increased by 20%. This suggests that the industry is prioritizing TV content over films, possibly due to its potential for recurring revenue through streaming platforms.
The Threat of Further Strikes
The ProdPro study also highlights the risk of another work stoppage in 2024, which could further hinder production. Industry insiders had speculated earlier this year that studios were being cautious about committing to new projects in anticipation of a potential strike by crew members.
However, the recent contract agreement between the International Alliance of Theatrical Stage Employees (IATSE) and the studios has reduced the likelihood of a crew member strike. The agreement includes wage increases, improved benefits, and protections against the use of artificial intelligence in the industry.
The Impact on Entertainment Workers
The decline in production has had a significant impact on entertainment workers. Many have faced unemployment and financial hardship, and the once-booming peak TV era seems like a distant memory. The industry is now focused on cost-cutting measures to recoup losses incurred during the streaming wars.
Los Angeles Loses Ground
Los Angeles, once the undisputed hub of the entertainment industry, has been losing ground to other production centers in the United States and abroad. These rival cities offer more attractive tax incentives, making them more appealing to studios. However, Los Angeles remains the dominant player in domestic film and TV production, followed by New York, Atlanta, Chicago, San Francisco, and other major cities.
Studios Invest Cautiously
According to ProdPro, studios committed to investing $11.3 billion in film and TV productions in the second quarter of 2024. While this represents a 39% increase from the same period in 2023, it is still 20% below 2022 levels.
Several high-profile projects have been announced, including Amazon MGM’s “Project Hail Mary,” “Mercy,” and “Blade Runner 2099,” as well as HBO’s “Game of Thrones” spin-off “A Knight of the Seven Kingdoms.” However, the overall pace of production remains slower than in previous years.
The Future of US TV Production
The future of US TV production is uncertain. While the recent contract agreement between IATSE and the studios has eased concerns about a potential strike, the industry continues to face challenges. The decline in production, coupled with the growing competition from other production centers, raises questions about the long-term sustainability of Hollywood’s dominance.
As the industry navigates these challenges, it is clear that the days of peak TV are over. The focus is now on producing high-quality content that can compete in a crowded marketplace while maintaining profitability.