The double strikes by Hollywood unions was epic.

A couple years ago, both the actors and writers' unions went on strike. It basically shut down Hollywood. It was a move that was seen as a win for the unions and its members.

Fast forward to today and we see the end is near. Hollywood is on life support and many are taking notice. The unions are sucking wind at a time when their membership needs defense more than ever before.

It is a situation that is highlighted by the corporate fight for Warner Bros. The choice is between Netflix and the evil Ellisons at Paramount. For the moment, Netflix is the winner but there is a hostile takeover being launched. Few would be surprised if Paramount eventually got the prize.

What does this mean for Hollywood and the unions? I will take a look at this.

The Crashing of Hollywood Unions

No matter how this breaks down, jobs will be lost.

A merger between two major Hollywood players, in the case of a Paramount victory, is seen as a job killer. These types of deals always end in layoffs. There is redundancy that is worked out. At the same time, operations are streamlined. After all, the billions that are being laid out have to be recouped somehow.

Even if Netflix is the winner, many surmise job loss. The theater business is likely dead, something that few are mentioning. While the company said it aims to keep that alive, we know how this is going to turn out.

Netflix became what it is by dominating steaming. The library is what it seeks. Time Warner might have the most valuable library outside of Disney. Netflix would love to get its hands on it. At the same time, the company produces original content, all of which gets directed at streaming.

The last strikes put an end to the outlandish streaming era. Before that, companies were taking whatever was produced. Obscene amounts of money was tossed around. The strikes (shutdown of the industry) caused these companies to re-evaluate. The streaming wars took a break, with the losers (everyone outside of Netflix) to step back.

What was seen as a win was a loser.

The Los Angeles movie making industry is down 40K jobs in the past couple years. The mantra was "survive until 2025". It was believed this would be the year of rebound.

In reality, we are seeing a year that either will fall short of 2024, or manage to eek out a small gain. That year was brutal at the box office. We saw flop after flop delivered. Even ones that did well did not turn a profit.

Investors Turning Away

We are seeing investment starting to dry up. This is the major crux of the problem.

If the money runs dry, jobs will evaporate. This is what the unions are facing. For preservation, the unions are now turning to YouTube influencers as a way to stay relevant. I guess the idea is to take on Google instead of Disney or Paramount.

Investors are simple creatures. They care little other than the return. Money is put into something with hopes of getting more out.

When films loss gobs of money, capital tends to flow elsewhere. The major studios spend the last decade appeasing everyone but the providers of capital, a move that is causing the well to dry up.

This does not mean the industry is dead. At this time, we are far from it. Change, however, could be in the air.

Geographic shifts are already underway. Other cities are taking movie activity away from Hollywood. Then we have smaller production houses that operate with lower budgets but do generate a return. Perhaps the focus is on a niche field.

All of this is going to have a knock-down effect. Throughout the entire industry, haircuts are taking place. Actors and writers are not finding work. While most envision people like Tom Cruise or Julia Roberts, the average actor is not a household name. This is reflected in the bank account.

People of this nature cannot afford to be without work. They are the ones who end up leaving the industry, further reducing the numbers. Hollywood is rapidly ceasing to exist as a destination.

Posted Using INLEO