Debate rages over health of Hollywood as industry cuts bite and audiences shift

Those working in TV have clashed over the health of Hollywood, with one senior level digital media executive arguing the industry is “booming” while one reality producer believes it is “definitely on life support.”

Aden Ikram

Aden Ikram, a former Amazon MGM Studios exec who began working for US telco Viasat at the beginning of this year, took to LinkedIn to make the case that heavy layoffs across the industry highlight how Hollywood is being “reborn.”

Warner Bros Discovery and Disney are among the US media giants to have recently announced further cuts across their businesses as they both seek billions in cost reductions.

“Layoffs do not mean Hollywood is dead, it means it’s transforming from traditional media to digital media, which results in a smaller work force,” said Ikram.

“A lot less people are needed to run a streamer than a TV network and it’s the traditional TV network media that’s crashing, so companies are shedding jobs in that area. Also, new tech like immersive VX green screens, AI and drones means smaller production teams.”

Ikram pointed to recent strong box office showings for features such as Inside Out 2, high uptake of connected TVs in the US and strong usage of streaming services such as Netflix, Paramount+, Disney+, Hulu, Max and Tubi as evidence that Hollywood “is in fact actually booming right now.”

Ikram added that while it is “painful” to see so many job losses in traditional media, adversity will ultimately make the industry “stronger.”

The exec has recently posted on LinkedIn backing Hollywood’s continued ability to create lasting IP that can rise above content being created by individuals on platforms such as YouTube and TikTok.

Patrick Caligiuri

However, Patrick Caligiuri, the experienced US unscripted producer whose social media posts about the state of Hollywood earlier this year gained widespread attention, labelled Ikram’s comments as “misleading.”

“Hollywood is certainly not ‘booming.’ Ask anyone who lives in LA,” said Caligiuri, who pointed to FilmLA recently raising its prices to obtain a permit to shoot on location in the city as evidence of a production slump.

This year has seen unscripted entertainment workers in the US turn to picking up Uber and DoorDash shifts to make ends meet due to Hollywood cuts and a severe shortage of work, while C21 recently highlighted LA’s “cratering” unscripted production volume in this report.

“Traditional Hollywood is definitely on life support, and some of the original mediums are 100% about to die. Much the same way television ‘killed’ the radio industry. Remember, there are radio stations still on the airwaves, but think of what happened to the primary audience… It’s safe to say, the internet killed the movie star,” said Caligiuri.

“But let’s be more specific. Cable Television is dead. No investments there anymore. Channel surfing is dead: no one seeks out new programming unless its marketed directly to the consumer,” added the former The Amazing Race producer.

“Broadcast television is contracting faster than ever before and will never be at the level it once was. Think of how radio stations are run today? Streamers have discovered it’s not a sustainable industry with subscriptions only and have only now realised the value of advertisers.

“170 million Americans are on TikTok. The eyes and attention are now on social media and TV has become ‘appointment viewing’ only. Celebrity culture is trending downward, as the audience rejects false and spun narratives in exchange for realism and honesty.

“Movie houses and theatres are barely making ends meet except for the ‘once a quarter blockbuster.’ Yes, Inside Out 2 made money, but how many movies came out this summer and bombed?”

The debate comes as alarm bells have been ringing in markets such as the UK after media regulator Ofcom found younger audiences are avoiding traditional broadcaster TV more than ever, with less than half of 16- to 24-year-olds watching linear programming in an average week.

Media commentator Evan Shapiro, who has recently debated with Ikram on LinkedIn about the creator economy and its impact, has previously warned that YouTube “poses a truly existential threat” to the traditional TV industry from an audience retention and revenue standpoint.