Hollywood's big boom has gone bust

Hollywood has long been a place where dreams are made, especially for those involved in the film and television industry. Michael Fortin, an actor and aerial cinematographer, was at the center of Hollywood's golden age of streaming. He transformed his passion for flying drones into a successful business in 2012, coinciding with the rise of streaming platforms like Netflix and Hulu. For a decade, he soared above film sets, capturing stunning aerial shots for popular movies and TV shows. However, the tides have turned, and now he faces the possibility of homelessness once again. After being evicted from his Huntington Beach home, where he lived with his wife and two young children, he is now being forced out of their Las Vegas apartment due to financial struggles. 'We were saving to buy a house, we had money, we had done things the right way,' he lamented. 'Two years ago, I didn't worry about going out to dinner with my wife and kids and spending 200 bucks. ' Now, he finds himself anxious about spending just five dollars on a meal at McDonald's. For over a decade, Hollywood was thriving, with studios competing to keep up with new players like Netflix and Hulu. However, everything changed in May 2023 when Hollywood's writers went on strike. This marked a significant moment, as it was the first time since the 1960s that both writers and actors united in their efforts, effectively halting production in Hollywood. Instead of bouncing back, the industry has struggled to regain its footing in the year since the strikes ended. Numerous projects have been canceled, and production has been significantly reduced across the city, leading to widespread layoffs at various studios, including a recent round of layoffs at Paramount Pictures. The company is now cutting 15% of its workforce in preparation for a merger with Skydance. Michael Fortin, who was once on set nearly every day, now finds it challenging to secure work. In August, the unemployment rate in the film and television industry in the United States reached 12. 5%, but many believe the actual figure is much higher. This discrepancy arises because numerous film workers either do not apply for unemployment benefits due to ineligibility or have exhausted their benefits after months of unemployment. Overall, the number of productions in the U. S. during the second quarter of 2024 was down approximately 40% compared to the same period in 2022. On a global scale, there was a 20% decline in productions during that time, according to industry tracking sources. This decline means fewer new movies and binge-worthy shows for audiences. Experts argue that the streaming boom was never going to be sustainable, and studios are now grappling with how to remain profitable in a landscape where traditional cable TV, funded by commercials, is losing its appeal. 'The air has come out of the content bubble,' stated Matthew Belloni, founder of Puck News, which covers the entertainment industry. 'Crisis is a good word. I try not to be alarmist, but crisis is what people are feeling. ' The boom in Hollywood was partly fueled by Wall Street, where tech giants like Netflix experienced unprecedented growth, and studios like Paramount saw their stock prices soar as they launched their own streaming services. 'It caused an overheating of the content market. There were 600 scripted live-action series airing just a few years ago, and then the stock market stopped rewarding that,' Mr. Belloni explained. 'Netflix crashed – all the other companies crashed. Netflix has since recovered, but the others are really struggling to achieve profitability. ' Additionally, some productions are being lured away from California due to attractive tax incentives offered by other states and countries. Concerned about the slowdown, Los Angeles Mayor Karen Bass established a task force last month to explore new incentives for film production in Hollywood. 'The entertainment industry is critical to the economic vitality of the Los Angeles region,' Bass stated while announcing the plan, emphasizing that it is a 'cornerstone' of the city's economy and provides hundreds of thousands of jobs. Recent data indicates that the entertainment industry contributes over $115 billion annually to the region's economy, employing over 681,000 people, according to the mayor. The strikes by writers and actors lasted for months and resulted in new union contracts that provide better pay and protections against artificial intelligence. Duncan Crabtree-Ireland, the chief negotiator for the Screen Actors Guild, expressed that some consolidation in Hollywood was inevitable. He remains optimistic that production will ramp up soon. 'What makes these companies special, what gives them their unique ability to create value is their relationship with creative talent,' he remarked while visiting a picket line outside a Disney office in September, where video game voice actors are currently striking for similar protections. He added, 'Hollywood always thinks it’s in crisis. It is a town that constantly faces technological innovation - all kinds of change - which is part of the magic. Part of keeping content fresh is everyone having the idea that things don't always have to be the way they've been. ' Michael Fortin's drone company was operating nearly every day before the strikes, but since then, he has only flown his drones 22 days in the year following the strikes. As an actor, he has worked just 10 days. He used to take on background acting roles to make ends meet, but the pay barely covered his gas money for the trip from Las Vegas to Los Angeles. 'It was a great wave, and it crashed,' Mr. Fortin reflected after a day of flying his drones on the AppleTV+ show Platonic, which marked his first gig with drones since April. 'Things are coming in little by little,' he said while sitting in his van before heading back to Las Vegas for a court hearing to contest his eviction order. 'Hollywood gave me everything,' he expressed. 'But it feels like the industry has turned its back on lots of people, not just me.