I'm amazed nobody has challenged OP on his narrative for why the film industry left LA since it's completely wrong.
It has nothing to do with 'evil corporations chasing efficiency.' And you rightly point out, efficiency/productivity is literally what raises living standards for everyone.
The truth is, rising living standards have increased leisure time globally, and increased leisure time leads to increased demand for entertainment fit to your culture.
China now has 2X as many movie theaters as the US does. India produces 2,500 films per year today vs. 500 in Hollywood. Ditto for Europe (2500 films produced last year). South Korea went from nothing to a global entertainment player in 10 years. Their industries are still smaller than Hollywood but growing at faster rates.
Just like what happened to Detroit in the 1970s when Auto manufacturers started having to compete with other countries who built domestic car industries, the same exact thing happened to Los Angeles.
In both 1970s Detroit and 2010s LA, companies had focused on monetizing old cash cows (the superhero film was the chevy land yacht) while the market evolved under their feet, and unions had inflated wages/costs to the point of being wildly uncompetitive, so the industry supply chain went global. LA also refused to allow building new homes, so talent couldn't afford to stay even at $1,000/day union rates just for holding a light (that's an actual union rate for a gaffer in LA).
We're still just at the beginning of this in entertainment.
Technology has enabled the production and distribution of high end video content to drop dramatically, while at the same time demand for entertainment shifted from being heavily western to being much more diverse.
It has nothing to do with 'evil corporations chasing efficiency.' And you rightly point out, efficiency/productivity is literally what raises living standards for everyone.
The truth is, rising living standards have increased leisure time globally, and increased leisure time leads to increased demand for entertainment fit to your culture.
China now has 2X as many movie theaters as the US does. India produces 2,500 films per year today vs. 500 in Hollywood. Ditto for Europe (2500 films produced last year). South Korea went from nothing to a global entertainment player in 10 years. Their industries are still smaller than Hollywood but growing at faster rates.
Just like what happened to Detroit in the 1970s when Auto manufacturers started having to compete with other countries who built domestic car industries, the same exact thing happened to Los Angeles.
In both 1970s Detroit and 2010s LA, companies had focused on monetizing old cash cows (the superhero film was the chevy land yacht) while the market evolved under their feet, and unions had inflated wages/costs to the point of being wildly uncompetitive, so the industry supply chain went global. LA also refused to allow building new homes, so talent couldn't afford to stay even at $1,000/day union rates just for holding a light (that's an actual union rate for a gaffer in LA).
We're still just at the beginning of this in entertainment.
Technology has enabled the production and distribution of high end video content to drop dramatically, while at the same time demand for entertainment shifted from being heavily western to being much more diverse.