Sunday, October 1, 2023

California loses $5,000 million to Hollywood strike

Hollywood’s first double whammy in more than 60 years has dealt a serious blow of $5 billion to the California economy.

The entertainment industry has largely been on hiatus since the Writers Guild of America and actors’ union SAG-AFTRA joined the strike.

Now the fallout is being felt across the city of Los Angeles as the economic downturn affects all businesses.

Caterers, dry cleaners, truck drivers, car rental companies, and other businesses that support the film industry bear the brunt of unemployment, according to Kevin Klowden, chief global strategist at the Milken Institute, which conducted the research.

“All of these people who are supporting the productions are being harmed,” Klowden told the Financial Times.

“We looked at it and talked to people: it affected restaurants and caterers, trucking companies, welders, builders, dry cleaners, and all kinds of businesses,” the man also told Yahoo Finance last month.

The exorbitant sum exceeds even analysts’ expectations of the damage the strike could cause. Todd Holmes, an entertainment industry professor at Cal State Northridge, had predicted $3 billion in damage to the California economy in the first 100 days of the strike.

The two unions have merged for the first time since 1960 as they lack revenue from streaming platforms and because of his concerns about the disruptive impact AI could have on his profession.

As a consequence: Hollywood Studios They have started delaying new releasesas the strike rules prohibit actors from promoting their films. Dune: part two, Ghostbusters: Life After Death j Spider-Man: Beyond the Spiderverse have been postponed or removed from the release schedule.

World Nation News Desk
World Nation News Desk
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