Death of Hollywood: Exaggeration or reality? A wake-up call for local creators

“The Death of Hollywood: Exaggeration or Reality?” is a question that continues to ignite discussions across the global entertainment landscape.

Once the unrivalled epicentre of filmmaking, Hollywood is experiencing profound changes driven by the rise of streaming platforms, rapid technological advancements, and shifting audience preferences.

These shifts are not isolated; they are reshaping media industries worldwide, including Malaysia’s. As local creators and industry players face the disruptions brought about by global platforms and digital innovation, the call for adaptation and resilience becomes more urgent than ever.

The double-edged sword of streaming

The emergence of streaming platforms has revolutionised content creation and consumption, breaking down traditional barriers to distribution. International giants like Netflix, Disney+ Hotstar, and Prime Video have democratised access to content, while local platforms like Astro GO, tonton, and Viu Malaysia have mirrored these changes in the Malaysian context.

On the surface, this shift appears promising, especially for independent creators. Local talents like The Ming Thing and filmmakers such as Namewee have harnessed digital tools to share uniquely Malaysian stories with global audiences. Yet, this transition comes with significant challenges, particularly for traditional broadcasters and production houses.

Advertising revenue, once the bedrock of traditional media, has increasingly flowed to digital platforms. In Malaysia, digital advertising accounted for over 60 per cent of total advertisement spend in 2022, growing by 13 per cent year-on-year. This surge in digital advertisement spend has come at the expense of traditional television broadcasters, whose advertising revenues have halved over the past five years.

Adding to this is Netflix’s recent foray into live sports broadcasting. The exhibition boxing match between Mike Tyson and Jake Paul, streamed live on Netflix, attracted over 60 million households worldwide. This event served as a market test for Netflix, showcasing its capability to handle large-scale live sports events.

While there were technical glitches, the viewership numbers underscored the platform’s potential to rival traditional broadcasters like beIN Sports and Astro Sports. If Netflix expands into major live sports, such as the English Premier League (EPL), it could challenge these broadcasters head-on, bidding for lucrative sponsorships and reshaping the sports broadcasting landscape.

For Malaysian broadcasters, this represents yet another area where adaptation is not just critical — it’s existential.

The role of AI: Friend or foe for Malaysia’s creative industry?

Artificial intelligence (AI) is another disruptor reshaping Malaysia’s media landscape. From AI-powered editing and subtitling to virtual production tools, AI offers opportunities to streamline workflows, reduce costs, and open new creative possibilities.

For instance, virtual production technology allows creators to simulate environments digitally, eliminating the need for costly on-location shoots.

However, AI also presents significant challenges, particularly for jobs traditionally rooted in human creativity, such as scriptwriting and voice acting. While AI can automate repetitive tasks, it often lacks the cultural nuance and emotional depth that Malaysian creators bring to their work.

To navigate this transition, industry players must embrace upskilling programmes that enable creators to work alongside AI rather than fear its encroachment. Initiatives by agencies like the National Film Development Corporation (Finas), such as funding AI-related workshops or offering incentives for ethical AI use, can help ensure a responsible adoption of AI tools.

Striking a balance between leveraging AI and preserving human creativity will be crucial. After all, it is Malaysia’s unique cultural authenticity that resonates most with audiences locally and globally.

Lessons from Hollywood’s resilience

Hollywood, a century-old industry, has weathered its fair share of challenges, from the advent of sound in films to the rise of television, home video, and now streaming. Each time, Hollywood has adapted, leveraging its resilience to emerge stronger.

Malaysia’s media industry can take valuable lessons from Hollywood’s adaptability. One significant takeaway is the importance of collaboration over resistance.

Major Hollywood studios, once competitors to streaming platforms, now produce original content for Netflix and Disney+, embracing the opportunities these platforms provide. In Malaysia, efforts such as Media Prima’s acquisition of REV Media and Astro’s push into digital platforms show a similar willingness to evolve.

However, more needs to be done to ensure Malaysian content remains competitive. Films like Mat Kilau and Polis Evo have proven there is demand for culturally resonant, high-quality productions. Sustaining this momentum requires continuous investment in talent development, storytelling, and production quality.

A call to action for Malaysia’s creative industry

The Malaysian creative industry stands at a crossroads, faced with the dual challenges of digital disruption and declining advertising revenues. However, these challenges also present opportunities for reinvention. To secure its future, the industry must act decisively in the following areas:

1. Protecting local creators through policies

• Implement tax incentives or subsidies to reduce financial burdens on local filmmakers.

• Introduce content quotas for streaming platforms, ensuring Malaysian stories have a prominent place in digital libraries.

• Regulate global platforms to contribute to local industry development, similar to policies in countries like Australia and South Korea.

2. Promoting Malaysian content globally

• Collaborate with international platforms to co-produce films that highlight Malaysian culture and talent.

• Support local filmmakers in participating in global film festivals and markets, such as Cannes and Sundance.

• Establish grants to market Malaysian content internationally, ensuring our stories reach global audiences.

3. Building talent and infrastructure

• Invest in film academies and training programmes to prepare the next generation of creators for a digital-first world.

• Develop state-of-the-art infrastructure, such as sound stages and VFX studios, to attract international productions.

The road ahead

As Johan Ishak aptly stated in a podcast with Amar Delon (Life Unscripted with Amar Delon, 2024), “Billions of ringgit are leaving our shores because advertisers are prioritising global platforms over local media. This is a major wake-up call for us.”

The Malaysian media industry has the potential to rise to this challenge by embracing innovation while safeguarding what makes it unique. By working together — creators, policymakers, and advertisers — we can preserve the heart of Malaysia’s creative industry while adapting to the demands of a digital future.

Hollywood isn’t dying; it’s evolving. And Malaysia’s creative industry must do the same. The question is: Are we ready to rise to the challenge?

The views expressed here are the personal opinion of the writer’s and do not necessarily represent that of Twentytwo13.