The current Writers Guild of America (WGA) strike could cost the state of California upwards of $3 billion.
According to The Hollywood Reporter, the previous WGA strike lasted for 100 days between 2007 and 2008, a stoppage that cost around $2 billion at the time; this totals $2.8 billion in 2023. Chief global strategist of the Milken Institute Kevin Klowden predicted that the price tag may be even larger this time around and could cost California $2.8 billion. "Could we see more? Absolutely," Klowden said. Hollywood spends millions of dollars a day on things like hotels, restaurants and construction, with one film production contributing $250,000 to the local economy. According to the Los Angeles County Economic Development Corporation, the previous writers strike cost California $772 million in lost wages and $981 million in lost revenue, with an additional $1.3 billion lost from the businesses that service the film industry.
WGA Strike Shuts Down Ongoing Productions
Starting on May 2, this is the WGA's first strike in nearly 15 years following unsuccessful contract negotiations with the Alliance of Motion Picture and Television Producers (AMPTP). Among the WGA's concerns are the use of AI-generated content and a raise in compensation and residuals, which has become increasingly complicated due to the nature of streaming. On May 4, striking writers began picketing outside the set of Marvel Studios' Wonder Man (a Disney-owned project) in an effort to shut down the production.
"If we shut this shoot down, Disney is going to lose a couple hundred thousand bucks on this location rental, on this equipment, on all the people, and that's gonna hit their balance sheet and it's gonna be like, 'oh, it's more expensive for us not to work with the writers guild than it is to actually negotiate,'" said comedian and labor organizer Adam Connover. Internet personality Hasan Piker added, "The more of these we shut down the sooner the strike ends." Shortly after, production on Mahershala Ali's Blade reboot was effectively shut down, becoming the first Marvel Cinematic Universe project to be affected by the strike.
While California is expected to take a significant financial hit due to the strike, it's been estimated that upcoming movie releases for 2023 and 2024 are "unlikely to be materially affected" by the strike, according to CEO of Cinemark Holdings Sean Gamble. However, Gamble did note that this will depend on the length of the strike, stating that the last writers strike had "some impact" on the film industry.
Television, on the other hand, has been significantly affected since the start of the strike, with late-night and weekly shows such as The Tonight Show Starring Jimmy Fallon and Saturday Night Live indefinitely shut down. However, productions like Disney+'s Andor remain unaffected as scripts for Season 2 were completed before the strike. Additionally, Season 2 of Prime Video's Lord of the Rings: Rings of Power is pushing forward with production without co-showrunners J.D. Payne and Patrick McKay.
At the time of writing, the WGA and AMPTP have not scheduled further negotiations. The WGA has asked its members to cease writing, editing or pitching for the duration of the strike.
Source: THR