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Are we witnessing the twilight of the traditional moviegoing experience? From dwindling box office numbers to the rise of streaming and the looming presence of artificial intelligence, the entertainment industry is undergoing a seismic shift. Even as the future remains uncertain, one thing is clear: the landscape of film is changing, and that change is already impacting the businesses that support it – and creating unexpected opportunities for collectors.

The Hollywood ecosystem, once a powerhouse of creativity and economic activity, is facing unprecedented headwinds. A confluence of factors, including the lingering effects of the 2023 labor strikes, studio debt, and escalating production costs, are contributing to a decline in industry employment and output. According to a recent report, California suffered a $4.14 billion loss in total output and 17,234 job losses due to a declining share of the US entertainment industry between 2019 and 2023 (Milken Institute, 2025). Entertainment jobs in the state decreased by 15 percent from the second quarter of 2019 to the second quarter of 2024.

The challenges extend beyond mere economics. A perceived lack of originality in recent blockbuster films, often relying on established franchises, is also contributing to declining viewership. Movie viewership has decreased by approximately 24% over the past five years, forcing some theaters to rely on special events to stay afloat (Milken Institute, 2025). This downturn is compounded by the proliferation of streaming services, which offer a more affordable and convenient alternative to traditional cinema, and the rapidly evolving capabilities of artificial intelligence.

The Rise of Streaming and AI: A Double Threat

Streaming services have disrupted the traditional movie-making model by prioritizing quantity over blockbuster budgets. Producing content for streaming platforms is generally cheaper than creating large-scale theatrical releases, shifting investment away from the types of films that once dominated the box office. Simultaneously, the emergence of artificial intelligence presents a potentially transformative – and disruptive – force. The possibility of using AI to generate scripts, direct scenes, and even create virtual actors raises questions about the future role of human creatives and the value of traditional filmmaking skills.

The concern isn’t merely theoretical. The potential to replace writers, directors, and actors with AI-powered alternatives, even in a limited capacity, could significantly alter the economics of the industry. While current AI-generated content may be “stilted and formulaic,” as one observer noted, the technology is rapidly improving, suggesting that its impact will only grow in the coming years.

A Silver Lining for Collectors: Prop and Costume Liquidation

However, amidst these challenges, an unexpected opportunity is emerging for collectors and vintage enthusiasts. As production companies downsize and shutter, they are liquidating vast inventories of props, costumes, and set pieces. The recent liquidation of CRC, a 50-year-aged Hollywood costume house, is a prime example. CRC’s inventory, large enough to outfit a major motion picture with thousands of extras, included garments, hats, jewelry, and a wide range of other accessories (Film Palm Springs).

A preliminary look at hollywoodvintageco.com reveals a glimpse of the treasures now available, as the bulk of CRC’s inventory went to family members who are beginning the process of sorting and selling the items. This isn’t an isolated incident; closures of similar prop and costume houses are likely to become more frequent as the industry continues to navigate its current challenges.

What Does This Mean for the Future?

The future of the film industry remains uncertain. While the challenges are significant, the industry has historically proven resilient, adapting to technological advancements and changing consumer preferences. The Motion Picture Association reported that the industry is responsible for 186,720 jobs in California, pumping more than $30 billion into the state’s economy in the form of wages (California Local, 2022). However, the current situation demands innovative solutions and a renewed focus on creativity to recapture audience interest.

For collectors, the current disruption presents a unique opportunity to acquire authentic pieces of movie history. As more prop and costume houses liquidate their assets, the market is likely to be flooded with unique and valuable items. Whether you’re a seasoned collector or simply a fan of film, now may be the time to explore the world of movie memorabilia.

The coming months will be critical as the industry navigates the ongoing impacts of streaming, AI, and evolving audience tastes. Continued monitoring of box office trends, studio performance, and technological advancements will be essential to understanding the long-term implications of these changes. What are your thoughts on the future of film? Share your opinions in the comments below.