Hollywood is the capital of TV and film production in the United States, but one industry is now taking over the traditional media scene.
Digital media is growing like wildfire in Los Angeles, as well as its job market.
This comes as good news for Los Angeles’ economy, which mainly thrives off of Hollywood and all its revenue.
The entertainment industry has previously experienced drawbacks as far as job losses.
During the height of the recession in 2008 and 2009, Los Angeles studios “scaled back production, slashed payrolls and curbed spending on advertising”. As a result, 12,600 jobs were removed from the film and sound industries.
Several media companies like Warner Bros. were forced to downsize its workforce last year in response to a struggling market.
Profit loss was mainly the product of declining box office and DVD sales. Online video streaming didn’t make the situation any better either.
The biggest influence on the movie industry, however, is due to relocation.
Many film houses have decided to take their business elsewhere where television and film state tax credits are not an issue. Film production crews have moved their venues to places like Atlanta, GA where media entertainment is really becoming prevalent. High-end movies have also been shot in overseas locations such as the UK.
With all the obstacles Hollywood is experiencing, it would seem that the film capital is gradually crumbling down.
Yet, 2014 brought improvements to Hollywood. The city of Los Angeles added 8,000 positions to its labor market, increasing the annual growth by 6.5 percent to 130,900 jobs.
Experts say that the digital media field has contributed to the employment upturn.
“We have a prolonged recovery from the recession, then we have a digital media surge that is taking place here in Southern California and an increase in commercial activity as firms are increasing their advertising expenditures”, mentioned Chief Economist Robert Kleinhenz with the Los Angeles County Economic Development Corp.
Although Los Angeles is losing production notoriety, it remains to be “the content center” of the film industry with the help of the digital media sector.
Digital projects are becoming increasingly popular through the production of Internet enterprises including Yahoo! and YouTube.
Online web series like Amazon’s Transparent has transformed the way people receive their visual entertainment.
While web-based platforms are making a groundbreaking revolution in Hollywood, workers from every extent of the industry are catching on to the movement.
Former production designer Cat Smith of HBO’s True Blood calls digitized entertainment “the future”, which isn’t far from the truth. She now works for the Transparent production team.
Twenty-year executive production veteran Jim Deutch recently decided to transition from TV to digital media. He has now taken his directing skills to AwesomenessTV, an online network featured on YouTube’s teen channel.
Professionals in the business have claimed that Los Angeles is the spot for aspiring entertainment gurus who are looking for a job.
Traditional media in Hollywood may be losing its limelight to digital media, but it’s also growing at the same time.