tech
December 26, 2025
‘Not the charmed industry it once was’: can Hollywood find its comeback story?
After the writers’ and actors’ strikes, the pandemic, and structural shifts in technology, LA’s trying to find its footing in a changed industry
TL;DR
- Hollywood professionals are increasingly working on projects located far from Los Angeles due to 'runaway production'.
- The 'Fallout' TV series is an outlier, returning to LA due to significant state incentives ($25m for season two, $166m for season three).
- The entertainment industry in LA is experiencing a downturn, with contributions to the motion picture pension plan dropping by one-third and fewer shooting days.
- Camera and equipment rental houses are closing, and businesses catering to the industry are seeing drastically reduced activity.
- Technological advancements and the rise of streaming services have fundamentally changed the business model, making it easier to produce content globally.
- Big tech companies like Netflix and Amazon are now major players, impacting traditional studios and distribution methods.
- Economists debate whether state incentives or stronger intellectual property rights are the better solution to the industry's challenges.
- Despite the struggles, Los Angeles is still considered the 'center of the universe' for marketing, sales, and distribution jobs in the entertainment sector.
- The industry is undergoing a period of downsizing and restructuring, with expectations of a return in a different form and size.
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