State of the Entertainment Industry Post-Strike: Innovation, Uncertainty, and Shifting Power Structure
The entertainment industry has entered a new chapter following the conclusion of the Writers Guild of America and SAG-AFTRA strikes in 2023. While the industry hoped to rebound strongly in 2024 and 2025, the reality has been more complex. Although some production has resumed, studios and streamers are still recalibrating their models amidst economic uncertainty, platform fatigue, and rapidly evolving technology.
AI’s Role: Disruption or Opportunity?
Artificial intelligence remains both the great promise and the great disruptor of Hollywood’s future. While many creators feared AI might replace creative jobs, the post-strike environment has emphasized a more collaborative framework. New contracts now require consent and compensation for use of an artist’s likeness or voice in digital replicas, as well as transparency around how AI-generated material is used in production.
Still, AI is increasingly being used in editing, dubbing, localization, and script analysis. Voice actors and creative professionals continue to push back against unregulated use, especially in international markets. Meanwhile, some industry leaders argue AI is more likely to augment creativity, reducing low-level tasks and freeing talent for high-concept development. The next few years will be a test of whether AI becomes a tool of empowerment or exploitation.
YouTube Ascends as Streamers Struggle
While streaming giants like Netflix, Hulu, and Max face increasing pressure to reduce costs and retain subscribers, YouTube has quietly become the dominant force in digital entertainment. Fueled by the creator economy, YouTube offers lower-cost production, community engagement, and algorithm-driven discoverability without the costs of creating original content.
YouTube’s rise is particularly evident among Gen Z and advertisers, with creators now rivaling traditional studios in reach and engagement. The shift also reflects a broader move toward short-form and creator-first content, challenging Hollywood’s supremacy of high-budget programming with big celebrities.
Warner Bros. Discovery Breaks Itself in Two
Among the legacy studios, Warner Bros. Discovery has made the boldest move in response to changing economics (i.e. it’s sinking stock price). In a dramatic restructuring plan, the company is splitting into two separate entities, one focused on streaming and studio content, including HBO, Warner Bros. Pictures, and DC, and another focused on its global network properties like CNN and Discovery Channel. Layoffs have hit marketing, distribution, and theatrical divisions. Like many studios, Warner Bros. is navigating the trade-off between short-term cuts and long-term sustainability.
Los Angeles Production Slows Despite the Rebound
Since the end of the strikes, production levels in Los Angeles have not returned to normal levels. Although there was a temporary spike in filming permits following the labor resolution, much of that momentum has stalled.
There are fewer trucks on the streets, quieter sound stages, and local vendors are struggling to regain consistent business. Production incentives in other states and countries have further pulled projects away from California, making it harder for LA to reassert itself as the production capital of the world. Newsom hopes that raising the tax incentives to $750 million will give the state and city the shot in the arm it needs.
A Rise in Independent Productions
As major studios tighten budgets and become more risk-averse, independent productions and filmmakers are seizing the moment. With the democratization of distribution platforms like YouTube, Vimeo, and niche streaming services, coupled with access to more affordable equipment, crowdfunding, and AI tools, indie creators are finding new pathways to bring stories to life. Many are bypassing traditional gatekeepers entirely, leveraging social media and direct-to-fan strategies to fund, market, and release their content. This shift is not only diversifying the kinds of stories being told, but also giving voice to underrepresented creators who have long been sidelined by the mainstream system.
The Road Ahead
In the midst of this disruption lies opportunity. Studios that can pivot quickly, creators who understand the new digital economy, and legal advisors who can navigate IP, contracts, and platform relationships all stand to benefit. What’s clear is that the entertainment industry is in a state of active transformation. It’s anyone’s guess where it’s all headed. But one thing is for sure, the need for entertainment has never been higher.