A grim report from Hollywood: 'People are having a hard time here.'

Business Insider

February 19, 2026

AI-Generated Deep Dive Summary

Hollywood is facing significant challenges as its movie and TV industries contract. The streaming boom that once fueled extensive production has declined, with much of the remaining work shifting overseas. This shift, combined with fears about AI's impact on employment in creative fields like visual effects, has left many industry professionals worried about their careers. Additionally, the ongoing bidding war for Warner Bros. Discovery (WBD) highlights broader issues of consolidation and financial instability within major studios. The situation is particularly concerning for those closely tied to Hollywood’s ecosystem, such as Janice Min, CEO of The Ankler. She notes that while streaming giants like Netflix and Paramount are vying for WBD, both companies face challenges in keeping their content profitable and engaging audiences. This uncertainty has led to a lack of confidence among investors, with shareholders expressing skepticism about the long-term viability of these acquisitions. The broader implications of Hollywood’s struggles extend beyond the entertainment industry. Los Angeles, the heart of this sector, is grappling with high unemployment rates and a sense of economic stagnation. Many young professionals in creative fields feel disillusioned by the lack of opportunities and the industry's shift toward overseas production, raising concerns about its ability to sustain itself without significant changes. For businesses and investors, understanding Hollywood’s current trajectory is crucial. The consolidation of major studios and the decline in domestic production could reshuffle the global entertainment market, impacting not only content creation but also employment trends and economic stability in key regions like Los Angeles. These shifts underscore the challenges industries face when adapting to technological advancements and changing consumer preferences. In summary, Hollywood’s contraction, coupled with its struggles to adapt to new technologies and shifting markets, presents a complex challenge for both industry players and stakeholders. The outcome of this transformation will shape the future of entertainment globally, making it a key area of interest for businesses and investors alike.

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Originally published on Business Insider on 2/19/2026