Rome, 2 September. The impact of the Hollywood strikes on the California economy is nearly $5 billion, just four months after the writers began picketing. That figure is expected to rise after recent talks between union representatives and film studios stalled. That’s exactly what a study from the Milken Institute suggests, whose head of strategy highlights that the first joint strike by actors and writers in 60 years has blocked most Hollywood productions, causing a ripple effect for restaurateurs, dry cleaners, drivers, rental companies and other small businesses that support the industry. . “All these different people who provide production support services are being nailed down,” Cloden, who has been an adviser to industry and California governors, told the Financial Times. California State Treasurer Fiona Ma sent an “urgent appeal” to major studio executives this week, in which she criticized their failure to reach an agreement with the unions and urged them to return to the negotiating table.
Noting that about 700,000 Californians work in the entertainment industry, he said the strikes threatened “the stability and value of retirees’ investments” in the state and called for an end to the deadlock. The WGA and the group representing the studios resumed discussions in early August after a period of “cooling off”, raising hopes for a solution. On August 22, union representatives met with Hollywood bosses, including Disney CEO Bob Iger and Netflix CEO Ted Sarandos. WGA representatives complained that they received a lecture from the CEOs. The studios, represented by the Motion Picture and Television Producers Alliance, then released the detailed terms of their proposal in hopes of gaining support from some of the union’s members. The WGA criticized what it called an attempt at “diversion” and there were no further discussions between the parties. The latest standoff raised fears that strikes could continue into the fall or beyond. There have been weeks between the studios and the 160,000-member Screen Actors Guild, whose members went on strike in mid-July. Warner Bros. has postponed the release of Dune: Part 2, starring Timothée Chalamet and Zendaya, until next spring. Sony has pushed back several films to next year, including Ghostbusters: Afterlife, and removed Spider-Man: Beyond the Spider-Verse from its release schedule. The strikes will have a significant impact on the Los Angeles economy, Cloden said, although Hollywood is lagging behind the ports in terms of financial importance. Once the strikes are resolved, Los Angeles’ recovery “will not be as fast as it could be,” Cloden said. Many actors and writers can find work in other cities, and they will not be available when filming resumes. Some crew members may move to other sectors. After the strikes end, studio space may be limited. Bilson, a member of the backstage theater workers union, said he supports the striking writers and actors, but is also concerned about the future of the industry.