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The Hollywood sign on Mount Lee on September 9, 2024, in Los Angeles (Kirby Lee/Getty Images)

Hollywood’s production levels this summer were even worse than last year, when workers were on strike

The labor contraction in Los Angeles continues.

10/17/24 11:10AM

Last summer, Hollywood productions were shuttered as tens of thousands of writers and actors went on strike.

This summer, Hollywood production levels were even worse.

The third quarter was film and TV’s worst of the year in Los Angeles, with total shoot days falling 5% from last year’s levels according to the city and county film-permitting office FilmLA. The region’s 5,048 total shoot days across film, television, and commercials were 36% below the five-year average.

Reality TV continued its free fall, down 56% from last year, when studios relied on the largely nonunion format to fill their libraries. Film and commercial shoot days both rose from last summer, but each category came in double-digits below their medium-term averages. Film shoots were down 48% from their five-year average and commercials down 33%.

The numbers are bleak, but they fit a trend of Hollywood’s contraction that saw original US scripted shows plunge 14% last year (and they’re projected to fall further). Coming in below last year’s third quarter is only further proof for the argument that the pullback’s cause is more deeply rooted than strike or pandemic aftershocks.

“Only a few months ago, the industry hoped we’d see an overall on-paper gain in the third quarter, due to the strike effect,” FilmLA President Paul Audley said in a statement. “Instead, we saw a pullback and loss of forward momentum, heading into the fall season that will make or break the year.”

Writers, actors, producers, and execs have told Sherwood that there are fewer buyers, shorter windows for buying, and a prevalent overall message from studios and streamers that “we aren’t interested.”

For LA specifically, some of the decline likely has to do with productions moving elsewhere to capitalize on tax breaks. Earlier this month, FilmLA called for a “vast expansion” to California’s tax-credit program. California spends $330 million per year to subsidize films and television created in-state, less than half of New York’s budget. Georgia, meanwhile, has no upper cap on its subsidy.

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Amazon is testing adding GM electric vans to its EV delivery fleet dominated by Rivian

Rivian may have some competition in its electric delivery van division: Bloomberg reports that Amazon is testing a small number of GM’s BrightDrop vans for its fleet.

According to Amazon, the test currently only includes a dozen of the vehicles. Amazon’s fleet also contains EVs from Ford, Stellantis, and Mercedes-Benz.

GM debuted BrightDrop in 2021, but the vehicles have struggled to sell and piled up on GM lots due to high prices and steep competition. GM began offering up to 40% rebates on the vehicles this year.

The test comes as Rivian struggles through tariffs and the end of EV tax credits. Earlier this year, it lowered its annual delivery outlook by about 13%. As of June, Amazon said it has more than 25,000 Rivian vans across the US. Earlier this week, Rivian CEO RJ Scaringe said the company is still on track to deliver 100,000 vans to Amazon by 2030 and is “thinking about what comes beyond” that initial target.

GM has sold 1,592 BrightDrop vans through the first half of the year, more than the full-year total it sold in 2024.

GM debuted BrightDrop in 2021, but the vehicles have struggled to sell and piled up on GM lots due to high prices and steep competition. GM began offering up to 40% rebates on the vehicles this year.

The test comes as Rivian struggles through tariffs and the end of EV tax credits. Earlier this year, it lowered its annual delivery outlook by about 13%. As of June, Amazon said it has more than 25,000 Rivian vans across the US. Earlier this week, Rivian CEO RJ Scaringe said the company is still on track to deliver 100,000 vans to Amazon by 2030 and is “thinking about what comes beyond” that initial target.

GM has sold 1,592 BrightDrop vans through the first half of the year, more than the full-year total it sold in 2024.

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Paramount Skydance reportedly preparing an Ellison-backed Warner Bros. Discovery takeover bid, sending shares soaring

Paramount Skydance is preparing a majority cash bid for Warner Bros. Discovery, The Wall Street Journal reported, sending shares of both companies surging. The Journal’s sources say the deal is backed by the Ellison family, led by David Ellison.

WBD shares were up 30% on the report, while Paramount Skydance jumped 8%.

The offer would cover WBD’s entire business — cable networks, movie studios, the whole enchilada. That comes after WBD announced plans last year to split into two divisions: one for streaming and studios, the other for its traditional cable and TV assets. A recent Wells Fargo note gave WBD a price target hike, primarily because the analysts viewed it as a prime takeover candidate.

If the deal goes through, it would bring together HBO, CNN, DC Studios, and Warner Bros.’ film library with Paramount+, Nickelodeon, and MTV, all under one umbrella.

The offer would cover WBD’s entire business — cable networks, movie studios, the whole enchilada. That comes after WBD announced plans last year to split into two divisions: one for streaming and studios, the other for its traditional cable and TV assets. A recent Wells Fargo note gave WBD a price target hike, primarily because the analysts viewed it as a prime takeover candidate.

If the deal goes through, it would bring together HBO, CNN, DC Studios, and Warner Bros.’ film library with Paramount+, Nickelodeon, and MTV, all under one umbrella.

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