Hollywood’s Streaming Boom Fizzles, Leaving Industry Workers in Crisis

Michael Fortin, once at the forefront of Hollywood’s streaming golden age, now finds himself on the brink of homelessness. The actor and aerial cinematographer, who turned his drone-flying hobby into a successful business in 2012, was in high demand, working on projects for Netflix, Amazon, and Disney. But today, after losing his Huntington Beach home, Fortin is facing eviction from his Las Vegas apartment, struggling to make ends meet in an industry that has ground to a halt.

Just two years ago, Fortin was saving for a house and enjoyed financial stability. Now, he’s anxious about spending even a few dollars on fast food. “We had money, we did things the right way,” he says, reflecting on his drastic change in circumstances. The decline in his fortunes mirrors the broader crisis facing Hollywood’s workforce.

The downturn began in May 2023 when Hollywood’s writers went on strike, marking the first dual strike by both writers and actors since the 1960s. The strike brought film and television production to a standstill, and even after the strikes ended, Hollywood hasn’t bounced back. Production has plummeted, projects have been cancelled, and layoffs continue to sweep through major studios, including Paramount, which recently announced plans to cut 15% of its workforce.

The impact has been stark. Unemployment in the film and television sector hit 12.5% in August 2024, though many believe the true figure is higher, as some workers have exhausted their unemployment benefits or are ineligible. Film production in the U.S. dropped by 40% in the second quarter of 2024 compared to the same period in 2022, while globally, it fell by 20%. This has resulted in fewer new movies and binge-worthy shows for audiences.

Experts argue that the streaming boom was never sustainable. Matthew Belloni, founder of Puck News, notes that Wall Street’s enthusiasm for streaming services led to inflated growth, with studios rushing to develop their own platforms. However, as share prices of companies like Paramount soared, the bubble burst. “The air has come out of the content bubble,” Belloni says, describing the situation as a “crisis.” While Netflix has recovered, other companies are still struggling to find profitability.

Hollywood is also losing productions to other states and countries offering attractive tax incentives. In response, Los Angeles Mayor Karen Bass recently formed a task force to propose new incentives aimed at revitalising film production in the city. She stressed the importance of the entertainment industry to Los Angeles’ economy, which contributes over $115 billion annually and employs more than 681,000 people.

The strikes resulted in new union contracts offering better pay and protection against the use of artificial intelligence, but the recovery has been slow. Duncan Crabtree-Ireland, chief negotiator for the Screen Actors Guild, remains optimistic, believing that production will soon pick up. “Hollywood always thinks it’s in crisis,” he says, pointing to the industry’s history of adapting to change.

For Fortin, the recovery feels far off. His drone business, once operating daily, has seen only 22 days of work in the year since the strikes ended. As an actor, he’s worked just 10 days. Once a steady background actor, he now finds the pay insufficient to cover the costs of travelling to Los Angeles for work. “It was a great wave, and it crashed,” he laments.

Despite the industry’s downturn, Fortin remains grateful for the opportunities Hollywood has provided. But as he prepares for an eviction hearing, he feels the industry has turned its back on him and many others like him. “Hollywood gave me everything,” he says, “but it feels like the industry has turned its back on lots of people, not just me.”