<em>Illustration by Amelia Madarang</em>
Hollywood is losing its battle with COVID-19. Dozens of productions have slowed down or been canceled due to the pandemic. And while things are returning back to normal, the entertainment industry is still expected to lose a projected $160 billion over the next five years. This is a fraction of revenue generated every five years by the entertainment industry, and has major ramifications for people working within it. An economic downturn of such magnitude could potentially create layoffs the likes of which the entertainment industry has never seen before.
So what can be done? The year of 2020 may be a bit of a lost cause in terms of revenue gained, but there is still major headway to be made when it comes to preparing people for a 2021 return. As it stands, there are a few significant behavioral and economic trends that need to be addressed for the industry to flourish yet again. There is validity in the idea that these trends will reverse naturally through a regression process, but it is illogical to depend on that. It is essential that Hollywood, as the hub of entertainment production in America, is proactive in fostering an environment where people can engage with their entertainment without having to worry about the cost.
First and foremost, movie theater trends (in terms of sales and public reception) warrant immediate attention. Alarmingly, people have used movie theaters as a source of entertainment far less since summer closures, and they are turning directly towards streaming services instead. With movie theater screenings serving as a primary source of revenue for many films, the effects of their relative disuse have been extremely costly; hundreds of millions of dollars have already been lost in box office sales.
However, there is a strategy for making movie theaters safer (and thus, more marketable) and more financially secure. The entertainment production industry could use its leverage over movie theater companies such as Harkins to push them into lowering their prices, as well as developing marketing schemes that illustrate the steps theaters are taking to prevent the spread of COVID-19. This would create an incentive for people to go to the movies despite a lack of blockbusters and pressing public health concerns.
Alongside movie theater trends, Hollywood has had to reckon with the shifting nature of filming. Now that large gatherings are a public health risk and certain regions have restricted access to filming, various shows and films have been unable to incorporate fundamental aspects of their cinematography. For instance, “Better Call Saul” has tended to utilize nail salons, strip malls and other staples of American life. However, director Vince Gilligan has openly acknowledged the difficulty in emulating his show’s unique style when crucial locations have limited access and extras cost a premium.
Obviously, the only way to overcome this hurdle is for the pandemic to improve significantly. So the way forward for Hollywood is clear: they need to lobby for policies and political candidates that reflect their willingness to see the pandemic go away. This is a tactic that has been used by Hollywood in the past, most recently in 2019 when a large portion of the industry appeared to back Kamala Harris as the Democratic frontrunner.
The last, and perhaps, most significant of the trends is the shifting of power dynamics within the film and television community. The five major studios (Universal, Sony, Warner Brothers, Disney and Paramount) remain at the top of the industry, but there is an ongoing power struggle between lesser-established studios. While this might seem like a natural phenomenon that occurs during most forms of market instability, it is problematic for Hollywood as it stifles the potential for future industry growth and creates a further dependency on gigantic contributors, namely the five major studios.
Thus, Hollywood should be treating lesser-studio conflict as an impactful phenomenon by pledging money and support to smaller studios that are in dire need of financial assistance. We have seen the pitfalls of relying on a few contributors to prop up an entire industry, particularly in the cases of oil and gas, where reliance on companies such as Royal Dutch Shell has resulted in descending prices. This implies that Hollywood should think about supporting smaller studios rather than ignoring the strain that COVID-19 has placed them under. Doing so would preserve its talent pool, in terms of acting talent fostered by smaller-studios, which is necessary for the sake of Hollywood’s future.
LC students would do well to pay attention to these trends, as they may impact their entertainment experience. Until Hollywood returns to their normal way of business, students should continue quarantining with their favorite streaming services.
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