Two years. 36,000 job cuts. A Hollywood labor strike that brought production to a standstill. A streaming market correction that wiped out billions in stock value. Welcome to the new normal for media and entertainment.
But if 2023 and 2024 were defined by chaos, 2025 is shaping up to be the cautious beginning of something different. Not a roaring comeback, but a measured, calculated reset. The industry isn’t about to suddenly flourish, but the worst of the bleeding might finally be over.
Layoffs: From free fall to a controlled descent
The numbers are grim, but at least they’re getting less grim. According to Challenger, Gray & Christmas Inc., 14,909 media jobs were cut in 2024—down from the 21,417 lost in 2023. That’s still catastrophic, but in a business where layoffs have been the default setting for two years, a slower rate of destruction actually counts as progress.
Linear television (as in the business model, not the distribution medium) continues to shrink. Digital media can’t figure out a sustainable business model. And Hollywood is learning the hard way that the streaming boom of the pandemic was more of a sugar high than a sustainable market reality.
Yet, there are early signs that the industry is beginning to stabilize rather than spiral. Many of the layoffs have been consolidation-driven, particularly at companies like Paramount Global and Disney, where major restructuring efforts are winding down. There’s still no real path to major job growth, but at least there’s a ceiling to how much more carnage can be inflicted.
Lelde Ardava, COO of Veset, believes that while 2024 was painful, 2025 will be about smart recalibration. “Companies are recognizing they need to do more with less, and that means becoming more agile and efficient. The ones who succeed won’t just cut costs—they’ll rethink how they operate.”
Hollywood’s shrinking footprint
Hollywood production is coming back—but not to Los Angeles.
The last two years have seen a massive shift in where movies and TV shows get made, and that change isn’t slowing down. London and Canada have been the biggest beneficiaries, but even within the U.S., cities like Atlanta and Albuquerque are emerging as production hubs, thanks to generous tax incentives and lower costs.
And now, just as L.A. was hoping for a post-strike rebound, wildfires have added another devastating blow. Since early January, fires across Southern California have caused billions in damage, displacing thousands and temporarily halting production at several studios. It’s yet another reminder that Hollywood’s dominance as the center of content creation is under threat—not just from shifting industry economics, but from environmental and infrastructure challenges that make filming elsewhere increasingly attractive.
“We’re seeing an acceleration of production leaving L.A., and I don’t think it’s coming back,” said Jason Gish, a veteran entertainment executive. “Post-production will follow. If the work isn’t here, the industry will go where the jobs are.”
AI is the double-edged sword that media can’t ignore
For the past year, AI has been both the bogeyman and the golden goose of the media industry. On one hand, it’s an existential threat to jobs, particularly in content creation. On the other, it’s a game-changer for efficiency and profitability—two words every media executive is obsessed with in 2025.
The reality? AI is going to replace jobs. But it’s also going to create new ones—just nowhere near as many.
“With the significant staffing reductions at major media companies, there is an inherent need for more help,” said Jeffrey Gilbert, Principal at XStep. “Some of that will come from AI. Some from third-party vendors who probably use AI. There’s a land grab happening, and that’s actually good for employees and vendors. AI doesn’t know much about streaming, so people who do will be valuable to AI vendors.”
Ciro Noronha, President of the RIST Forum, sees AI’s impact on infrastructure as just as critical as its effect on content. “AI isn’t just changing how we produce media—it’s revolutionizing how we deliver it. From compression algorithms to adaptive streaming, AI-driven efficiencies are making content more accessible and cost-effective.”
From streamlining content recommendations to optimizing ad targeting, AI is already reshaping media operations in ways that cut costs and increase revenue. Chris Bassolino, Head of Sales at Zype, predicts that AI-driven automation will become standard in 2025:
“We’ll see more applications of AI to reduce friction, streamline workflows, expand audience support, and optimize content recommendations,” he said. “For the companies that help their clients do more with less, 2025 will look a lot brighter.”
Mrugesh Desai, VP of North America at Accedo, agrees. “Many B2B companies in the industry made strategic corrections in 2024 to align with a weaker market, establishing a solid cost basis to stabilize operations and refocus on growth. Additionally, with the U.S. elections behind us, we anticipate media companies will shift their attention back to growth initiatives, creating opportunities for their B2B partners.”
The biggest opportunity isn’t in replacing creatives—it’s in making distribution and monetization smarter. AI won’t write the next blockbuster script (not a good one, anyway), but it will ensure that studios spend their money more effectively on the right projects for the right audiences.
The Streaming Wars A.B (After the Bubble)
After years of “growth at all costs” thinking, streaming is finally a business.
Netflix, Disney, and Warner Bros. Discovery all hit profitability milestones in 2024, proving that streaming can make money—but only with aggressive cost-cutting, ad-supported models, and strategic bundling.
Geoff Gordon, VP of Global Marketing at MainConcept, sees a shift in industry priorities. “The level of economic uncertainty will be considerably less in 2025. The industry is stabilizing, and we’re seeing a rise in ad tech innovation, leading to a boost in ad revenue and a focus on improving viewer experiences.”
Ryan Allen, Director of Business Development at Integrated Digital, sees this shift as inevitable:
“A couple of years ago, the consumer was barraged with streaming options, and providers were spending heavily to acquire those customers. But with tighter financial conditions, consumers reconsidered their multiple subscriptions, and providers were forced to rein in costs.”
That’s why the market correction of 2023-24 is leading to more sustainable strategies in 2025. The days of endlessly pumping cash into original content with no clear return are over. Instead, platforms are prioritizing profitability over raw subscriber growth, leaning into advertising and international expansion to make up for stagnation in the U.S.
“Ad-based models make international markets—such as Latam, India, and Africa—more viable,” Allen said. “There’s significant opportunity for growth in these regions.”
And consolidation isn’t done yet. Disney’s integration of Hulu, Paramount’s potential sale to Skydance, and Walmart’s acquisition of Vizio all point to a world where streaming is no longer a free-for-all, but a landscape dominated by a few major players with clear business models.
The new normal is Slow, steady, and profitable?
Media and entertainment isn’t “back”—but it might be done collapsing.
Executives are focused on profitability, operational efficiency, and strategic expansion. AI is making operations leaner, streaming is finally acting like a real business, and the worst of the layoff wave may have passed.
There are still challenges ahead—Hollywood’s identity crisis, the future of linear TV, and the unresolved role of AI in creative work—but for the first time in two years, there’s a sense that the industry is finding its footing.
If 2023 and 2024 were about survival, 2025 is about recalibrating. And maybe, just maybe, laying the groundwork for something bigger.
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