With news of another recession just over the horizon making headlines, people will be more careful when and where they spend their extra money for a while. This means less money will be spent by consumers on entertainment, and that includes seeing the latest movies at theaters. It might also mean much fewer subscriptions to online movie companies like Netflix and Amazon Prime Video
Judging from the Past
People who worked in film and television were hit dramatically by the effects of the Great Recession, which started in 2007. Thousands of movie and film developers lost their jobs during this time, and many who still have theirs are probably feeling a bit shaky right now. At that time, the recession, as well as the Writers Guild strike, made things especially dreadful for Hollywood.
It shouldn’t be as bad this time, but it will probably mean much of the same in the way of job loss for those still working in Hollywood. At the very least, the quality of movies and TV shows will be affected. Since the last recession began, movie companies began hiring actors they could pay much less than their famous counterparts. They simply couldn’t afford to pay as much, and the quality of movies that would otherwise have been sensations fell as a result.
Challenges Faced Today
Digital media outlets and streaming services like Hulu and Netflix are changing the way businesses are conducted in Hollywood. As more people use these platforms for their primary entertainment needs, there will probably be a reallocation of funding.
The effects the economy has on Hollywood production isn’t just financial, however. It can have a real psychological effect on the population, changing the spending habits of consumers dramatically out of fear for the future. At the same time, the general public is likely to escape reality by watching more movies and TV shows. The trick will be to provide the public with entertainment they desire on their terms in the future. The rise in digital media and streaming services can be seen as an indication of this need.
The entertainment industry is more of a necessity than most people think. During hard times, people tend to need the escape of various forms of entertainment to cope. It’s up to the leaders of Hollywood to study the viewing and purchasing trends of their audiences and make the appropriate adjustments.