Hollywood's double strike leaves $5 billion hole in California's economy

The state treasurer, Fiona Ma, wrote a letter to the top producers in which she asked them to reach "fair deals" in an effort to end the strikes.

Imagen del 4 de agosto de 2023 de varios guionistas y actores durante un piquete frente a la sede de Netflix en Hollywood durante la doble huelga que lleva activa más de cuatro meses. — (Cordon Press)

Published by

Rosana Rábago Sainz

11 de septiembre, 2023

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We have been on strike in Hollywood for 132 days and the situation does not seem to be improving. The Alliance of Film and Television Producers (AMPTP) has failed to reach an agreement with either the Writers Guild of America (WGA), or the Screen Actors Guild-American Federation of Radio and Television Artists (SAG-AFTRA), and the consequences of this double strike continue to be noticed throughout the US territory.

The hardest hit state, without a doubt, is California. According to data from the Financial Times, the double Hollywood strike has caused losses of 5 billion dollars in The Golden State alone. The situation reached such a level that the state treasurer, Fiona Ma, wrote a letter addressed to the top producers in which she asked them to seek "fair deals" in order to end the shutdown.

The letter was sent to the directors of Netflix, Walt Disney Company, Comcast, Warner Bros. Discovery, Apple, Paramount Global and Amazon. Brian Roberts, CEO of Comcast, shared some of the comments with the Boston Herald:

The impact of these two strikes paralyzes Hollywood and reverberates across the state, affecting countless businesses, thousands of pension fund beneficiaries, and millions of Californians. Your failure to come to an agreement is threatening the industry’s ability to ensure that writing, acting and other positions are viewed as sustainable careers in California.

Hollywood's double strike hurts about 700,000 californians

The reasons for concern are justified. According to data from the Financial Times, about 700,000 Californians work in the entertainment industry and many other sectors depend on both actors and screenwriters returning to work. Kevin Klowden, chief global strategist at the Milken Institute, said jobs such as those developed by caterers, dry cleaners, truckers, car rental companies and other small businesses that support the film industry have been the hardest hit during these four months.

Gregg Bilson is one of them. He is president of ISS Group, a company that provides services to the film industry. According to the economic media, their income fell between 90 and 95%. This caused him to suspend 70% of the 225 people he employs:

It’s been tough. I laid myself and my wife off seven weeks ago. Production across the board has stopped happening. If the strike continues much longer — and it does not appear that the sides are talking anywhere near a settlement — it’s going to forever change the landscape with regard to vendors and crew. There’s so many people now that are either retiring or choosing another profession because of this strike. So it’s really going have an impact on our ability to do shows for many years.