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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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Volkswagen is reportedly closing in on its own, separate tariff deal with the US

In a bid to get its own tariff rate below the 15% applied to most EU exports, Volkswagen is dangling big US investments.

Speaking at a trade show Monday, VW CEO Oliver Blume said the automaker is in advanced talks on a deal to limit its own tariff burden. Volkswagen reported a tariff cost of $1.5 billion in the first half of the year.

Speaking to Bloomberg TV, Blume said the company is in close contact with the Trump administration and has had “good talks” about its separate deal. The current 15% tariff rate on EU vehicles would still “be a burden for Volkswagen,” Blume said.

A company reaching a tariff deal separate from its home country isn’t typical, though there’s already precedent this year, with Apple’s $100 billion US investment deal amid chip tariffs and President Trump’s threats to add a levy to smartphones. Nvidia and AMD similarly struck a deal to receive the ability to sell chips in China and in exchange agreed to give the US 15% of the revenue from those sales.

Speaking to Bloomberg TV, Blume said the company is in close contact with the Trump administration and has had “good talks” about its separate deal. The current 15% tariff rate on EU vehicles would still “be a burden for Volkswagen,” Blume said.

A company reaching a tariff deal separate from its home country isn’t typical, though there’s already precedent this year, with Apple’s $100 billion US investment deal amid chip tariffs and President Trump’s threats to add a levy to smartphones. Nvidia and AMD similarly struck a deal to receive the ability to sell chips in China and in exchange agreed to give the US 15% of the revenue from those sales.

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