Hollywood strikes striking California’s bottom line to the tune of $5 billion
Written by ABC Audio. All rights reserved. on September 5, 2023
The simultaneous Writers Guild of America and SAG-AFTRA strikes have put the hurt on California’s economy, to the tune of $5 billion bucks so far, according to the Financial Times.
While the twin strikes have ground production of movies and TV shows to a halt, they’ve also crippled other companies dependent on the entertainment industry, from dry cleaners for costumers, to caterers for set craft services departments, to equipment rentals.
“All these different people who provide support services that make productions happen – they’re getting nailed,” Kevin Klowden told the Financial Times. Klowden is the chief global strategist at the Milken Institute, which took a deep dive into the strikes’ effects.
The economic impact on California has been even bigger than some had theorized, the article states.
According to a financial statement just released by Warner Bros. Discovery that was quoted by Deadline, that one company alone is expecting a $500 million loss from the work stoppages — and that’s even with the blockbuster Barbie under Warner Bros. Pictures’ belt.
The Writers Guild of America strike began on May 2, and the SAG-AFTRA strike officially started on Friday, July 14.
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