Is Hollywood Dying?

The last time Emma Iasevoli went to a movie theater with some friends a few months ago, tickets cost almost $20 apiece. That didn’t include snacks or drinks, which added another $15 each. She isn’t likely to go again anytime soon, even for a film starring Margot Robbie or one of her other favorite actors.

“It would be one of the last things on our list,” the 16-year-old from Watertown, Connecticut, says. “Me and my friends would rather stay home and have a sleepover and watch the movie.”

Last year was supposed to bring a turnaround for the movie industry, reversing a yearslong slump in ticket sales. The studios released about 200 films, the most since the Covid-19 pandemic shuttered theaters in 2020. With blockbuster franchises like Jurassic Park and Avatar returning to the big screen, experts had predicted that North American moviegoers would return to the theaters in droves in 2025.

Emma Iasevoli went to a movie theater with some friends a few months ago. The tickets cost almost $20 apiece, and that didn’t include snacks or drinks, which added another $15 each. She probably won’t go again anytime soon, even for a film starring Margot Robbie or one of her other favorite actors.

“It would be one of the last things on our list,” the 16-year-old from Watertown, Connecticut, says. “Me and my friends would rather stay home and have a sleepover and watch the movie.”

Last year was supposed to bring an end to the yearslong slump in ticket sales for the movie industry. The studios released about 200 films. This is the most since the Covid-19 pandemic closed theaters in 2020. Experts had predicted that North American moviegoers would return to the theaters in 2025 because of blockbuster franchises like Jurassic Park and Avatar.

It didn’t happen. Before the pandemic, ticket sales routinely hit between $10 billion and $11 billion a year. Last year brought in $8.87 billion, even with higher ticket prices.

“It has seriously begun to look like the bottom is falling out,” Owen Gleiberman, film critic for the entertainment trade news outlet Variety, wrote in November.

To many observers, Hollywood’s decline is about more than unfilled seats. The fabled land of moviemaking itself seems to be drying up. Thousands of industry jobs have disappeared as productions have shifted overseas to reduce costs. Streaming services, including Netflix and Amazon, which produce their own movies and shows for viewing on devices and TVs, are rivaling century-old film studios like Paramount and Warner Bros.

It didn’t happen. Before the pandemic, ticket sales routinely hit between $10 billion and $11 billion a year. Last year brought in $8.87 billion, even with higher ticket prices.

“It has seriously begun to look like the bottom is falling out,” Owen Gleiberman, film critic for the entertainment trade news outlet Variety, wrote in November.

Hollywood’s decline is about more than empty seats. Moviemaking itself seems to be drying up in the area. Thousands of industry jobs have disappeared because productions have moved overseas to reduce costs. Streaming services, including Netflix and Amazon, produce their own movies and shows for viewing on devices and TVs. They are competing with century-old film studios like Paramount and Warner Bros.

Young people, once a reliable ticket-buying group, are increasingly turning away from Hollywood in favor of user-made videos on social media, industry strategists say. In a 2025 survey by Deloitte, 56 percent of Gen Z members (born between 1997 and 2012) said they find social media content “more relevant than traditional TV shows and movies.” They also consider online content creators more “real,” wary of the A.I. now commonly used in filmmaking.

“It’s not a phase,” says entertainment strategist Kevin Goetz, about the lack of excitement around movie releases these days. “It’s an evolution you can’t reverse.”

People of all ages once flocked to theaters. In 2002, a peak attendance year, moviegoers in the U.S. and Canada bought 1.57 billion tickets, nearly double what they bought in 2025. Back then, going to the movies was still a major source of entertainment for most people, as it had been for decades.

The internet changed all of that. With the arrival of streaming services, such as Netflix in 2007, people had less of an incentive to visit theaters.

The Covid-19 pandemic accelerated the trend. Theaters closed and people spent even more time on their devices. This made streaming a major point of contention during the 2023 Hollywood strike, which forced a near-complete shutdown of TV and film production. Actors and writers wanted a bigger share of the profits studios made on streaming. After six months and a loss of $1.6 billion in ticket sales resulting from delayed releases, the studios relented, agreeing to increase wages.

But those agreements will expire by this summer, and the studios and workers have begun negotiations anew. In addition to streaming, a key issue now is keeping jobs in Los Angeles. As production costs have grown, many producers have turned to filming overseas, where it’s cheaper. International sites often come with lower labor costs and lower taxes than what California offers. That has left many Hollywood studio lots idle and many people out of work. By the end of last year, about 83,000 people held movie industry jobs in Los Angeles—59,000 fewer than before the strike.

Local 724, the union representing film crews, has been pushing California lawmakers to offer more tax breaks to bring production back to the city. Says Alex Aguilar, the union’s business manager, “If we [mess] this up, this industry’s gone.”

Emblematic of the changes going on in the industry is Netflix’s bid to take over Warner Bros., the 103-year-old studio. If the company wins approval from federal regulators, it would represent a victory for streaming over the old formula of shooting films for the big screen.

Young people, once a reliable ticket-buying group, prefer user-made videos on social media rather than studio films, industry strategists say. A 2025 survey by Deloitte found that 56 percent of Gen Z members (born between 1997 and 2012) find social media content “more relevant than traditional TV shows and movies.” They also consider online content creators more “real,” wary of the AI now commonly used in filmmaking.

“It’s not a phase,” says entertainment strategist Kevin Goetz, about the lack of excitement around movie releases these days. “It’s an evolution you can’t reverse.”

People of all ages once filled theaters. In 2002, a peak attendance year, moviegoers in the U.S. and Canada bought $1.57 billion tickets, nearly double what they bought in 2025. Back then, going to the movies was still a major source of entertainment for most people.

The internet changed all of that. People had less of an incentive to visit theaters because of streaming services, such as Netflix.

The Covid-19 pandemic accelerated the trend. Theaters closed. People spent even more time on their devices. The 2023 Hollywood strike, which forced a near-complete shutdown of TV and film production was in part due to streaming. Actors and writers wanted a bigger share of the profits studios made on streaming. The strike lasted six months. The studios lost 1.6 billion in ticket sales because of delayed releases. Finally, they agreed to increase wages.

But those agreements will expire by this summer. Studios and workers have started new negotiations. In addition to streaming, a key issue now is keeping jobs in Los Angeles. Many producers have turned to less expensive filming overseas. International sites often come with lower labor costs and lower taxes than what California offers. Now Hollywood studio lots are unused and many people out of work. By the end of last year, about 83,000 people held movie industry jobs in Los Angeles. That’s 59,000 fewer jobs than before the strike.

Local 724, the union representing film crews, has been pushing California lawmakers to offer more tax breaks to bring production back to the city. Says Alex Aguilar, the union’s business manager, “If we [mess] this up, this industry’s gone.”

Emblematic of the changes going on in the industry is Netflix’s bid to take over Warner Bros., the 103-year-old studio. If the company wins approval from federal regulators, it would represent a victory for streaming over the old formula of shooting films for the big screen.

What does all this mean for consumers? Filmmakers will still make films whether or not theaters continue to show them—and whether or not Hollywood itself remains a vibrant place to work, experts say. But the films themselves could look different.

“Attention spans are shifting,” says actor and producer Reese Witherspoon, who has produced so-called micro dramas—bite-sized movies shot vertically for viewing on a smartphone.

“The way we make movies is going to change radically in the next two to three years,” she says.

That might not please everyone. But it sounds fine to Henry Chen, 15, a student at Carlmont High School in Belmont, California, who prefers short videos anyway.

“With longer shows, I get bored,” he told the school’s news site, Scot Scoop. But microdramas give you “all the action in one nice little package.”

Experts say filmmakers will keep making films, even if theaters stop showing them or if Hollywood becomes a less busy place. But the movies themselves may start to look different.

“Attention spans are shifting,” says actor and producer Reese Witherspoon. She has produced so-called micro dramas—bite-sized movies shot vertically for viewing on a smartphone.

“The way we make movies is going to change radically in the next two to three years,” she says.

That might not please everyone. But it sounds fine to Henry Chen, 15, a student at Carlmont High School in Belmont, California. He prefers short videos anyway.

“With longer shows, I get bored,” he told the school’s news site, Scot Scoop. But microdramas give you “all the action in one nice little package.”

With reporting by Brooks Barnes, Lulu Garcia-Navarro, Matt Stevens, and Nicole Sperling of The New York Times.

With reporting by Brooks Barnes, Lulu Garcia-Navarro, Matt Stevens, and Nicole Sperling of The New York Times.