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Hollywood Unions Sound Alarm on U.S. Production Decline
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In Short: The report attributes these declines to the rise of streaming services, which have altered production scales, budgets, season lengths, and release models.
Hollywood unions issued a report on Monday highlighting a concerning trend: the U.S. has lost significant market share in film and television production over the last 25 years. According to the report, from 1999 to 2024, major U.S. studios spent 74% of their film production budgets in the U.S., but this figure has since dropped to 42%.
The report, commissioned by several Hollywood unions, also found that the share of the actual number of films and TV episodes produced in the U.S. has declined. For films, the share dropped from 96% to 70%, while for TV episodes, it fell from 96% to 70% as well.
For total cast and crew working on major studio films, the share of those working on movies filmed partially or primarily in the U.S. has decreased from 96% to 70%. In television, the share of cast and crew working on U.S.-based productions has dropped from 86% to 58%.
The report attributes these declines to the rise of streaming services, which have altered production scales, budgets, season lengths, and release models. This shift has created discontinuities in what constitutes a comparable television series across different periods.
The unions emphasized the potential economic impact of these trends. They noted that a 20% federal tax credit, which could be stacked onto state benefits, could create $250 billion in additional gross economic value and support an annual average of 143,500 additional jobs across the country.
Members of Congress have been focusing on the sharp downturn in domestic production jobs since the end of Peak TV in 2022. However, the union report, prepared by EY, provides a longer-term perspective, showing that the globalization of production has been ongoing since the turn of the millennium.
What this adds
The report highlights the broader economic implications of the decline in U.S. production, emphasizing the potential benefits of federal tax incentives.
While the report acknowledges the overall growth in production, it underscores the significant loss of market share for the U.S. industry.
What's confirmed
- From 1999 to 2024, the share of production spending by major U.S.
What's still developing
- “When read in tandem with a recent study by the Motion Picture Association, unless action is taken America will continue to lose ground in retaining this industry and the middle-class jobs it provides,” the unions said in a statement on Monday.
- Another alarm bell went off Monday on the state of U.S.-based film and television production with the release of an extensive report commissioned by several of the Hollywood unions that illustrates what industry insiders have feared for some time: After a quarter century of rapid transformation and external disruptions, U.S.
- For TV, the share is down 28 points from 86% to 58%.
- Popular on Variety The report acknowledges that production has grown considerably over that period — so the U.S. is taking a smaller piece of a much larger pie.
Sources
- Deadlinelink