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Things Are Bad In Hollywood Right Now

Jan 22, 2026
Hollywood is facing a crisis, grappling with the effects of COVID and intense competition. The challenges mirror those in the gaming industry, highlighting layoffs and budget cuts across both sectors. Secrecy around streaming metrics leaves creators uncertain about earnings. Meanwhile, the rise of TikTok shifts audience attention away from traditional content. As discussions about AI's role in reducing costs heat up, the balance between human creativity and automation hangs in the balance, complicating the future of storytelling.
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INSIGHT

Pandemic Fueled Unsustainable Boom

  • The pandemic and zero interest rates created a content boom that masked unsustainable growth in entertainment.
  • When rates rose and attention splintered, studios and game companies faced a harsh correction.
INSIGHT

Competition Is For Attention, Not Just Market Share

  • Executives now view competitors as attention platforms, not just rival networks.
  • Netflix and game publishers see TikTok, YouTube, and Roblox as primary competition for user time.
ANECDOTE

Veteran Sound Mixer’s Industry Snapshot

  • A 25-year sound mixer described more content but shrinking budgets and fewer sustainable jobs.
  • They explained constrained budgets, opaque streaming metrics, and loss of steady work for long-time craftspeople.
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