The television industry is undergoing a major shift, with fewer scripted series being produced compared to past years. While many in Hollywood hoped for a strong rebound after the 2023 labor strikes, recent data suggests that the decline in TV production may be a long-term trend rather than a temporary setback.
Industry reports show a 25% drop in first-run scripted series orders in 2024 compared to 2022 when TV production was at its peak. This reduction is not limited to one region or company—it is happening across the board. Major studios and streaming platforms are adjusting their content strategies, prioritizing financial stability over sheer volume.
A Shift in Content Spending
Despite initial expectations of a spending surge, entertainment budgets are expected to remain flat in 2025. The six biggest media companies—Netflix, Amazon, Disney, Apple, Paramount, and Warner Bros. Discovery—are projected to spend around $98 billion on content, a figure that has barely changed from the previous year. Netflix, however, plans to increase its spending from $17 billion to $18 billion, indicating a selective approach rather than an industry-wide expansion.
Guy Bisson, executive director at Ampere Analysis, pointed out that the industry has adapted to working with fewer productions. “The industry has learned it can operate at 75% of its peak level,” he explained, highlighting how production has stabilized following the disruptions of recent years.
The Role of Sports and Licensed Content
One of the most notable shifts in Hollywood’s strategy is the increasing focus on live sports. Streaming platforms are investing heavily in sports content, which consistently draws large audiences and generates significant ad revenue. Projections indicate that spending on live sports by major streaming services will reach $28 billion in 2025, marking a 28% increase from 2022.
Additionally, streaming giants are relying more on licensed content rather than producing original series. Netflix’s recent “Engagement Report” revealed that nearly half of its viewership comes from licensed shows, a trend expected to continue. Disney has also ramped up its investment in licensed content, especially after fully acquiring Hulu in late 2023.
Changing Trends in TV Genres
Crime remains the most popular genre, accounting for 25% of scripted commissions by major streamers in 2024. Drama follows at 19%, with romance at 17%. Interestingly, comedy and action saw the biggest growth, each increasing by about 60% compared to the previous year. Meanwhile, children’s programming faced the steepest decline, dropping around 45%.
Another significant trend is the rise of international productions. For the second consecutive year, Western Europe saw more first-run series orders from major streaming platforms than North America. Asia also experienced a surge in TV production, surpassing North America in new orders for 2024.
Hollywood’s Production Hub Faces Challenges
Los Angeles, long regarded as the heart of the entertainment industry, is seeing a decline in production activity. Data from FilmLA indicates that the number of shoot days dropped by 5.6% in 2024, marking the lowest level recorded outside of the pandemic-related shutdowns of 2020.
Meanwhile, film production has remained relatively stable, with only a 4% decline compared to non-strike years. However, reality TV and celebrity-backed production companies have struggled, particularly those that had previously secured high valuations.
The Future of Hollywood’s Production Model
Industry experts have mixed opinions on what lies ahead. While some believe that the current slowdown is the new standard, others remain optimistic about future growth. Alexander LoVerde, CEO of production tracking firm ProdPro, emphasized the potential for reinvestment. “With stronger financial footing, streaming platforms are in a position to gradually increase content investment, setting the stage for steady expansion in 2025 and beyond,” he noted.
While Hollywood may not return to its peak production levels, the industry is evolving. Studios and streaming platforms are focusing on sustainability, balancing original content with licensed programming, and making strategic investments in live sports. The future of Hollywood remains uncertain, but one thing is clear—change is here to stay.
