The Writers' Guild of America (WGA) strike has significantly impacted the Hollywood economy, with many film and TV productions halted due to the strike. The company, run by Pam Elyea and her husband, History for Hire, has seen its revenue drop 60%, and its monthly expenses fall $100,000 short. The strike has also affected small businesses in Los Angeles and beyond, with florists, caterers, costume suppliers, and others experiencing dwindling orders as many are still recovering from disruptions caused by COVID-19. The current toll of the strike is unclear, and no new talks are scheduled between major Hollywood studios and the writers, who are seeking higher pay and guardrails around the use of artificial intelligence.
The number of permits issued for movie and TV filming in Los Angeles has fallen 56% from a year ago, according to permitting organisation FilmLA. As of June 18, just three were allowed to film in the city. The strike's impact would be magnified if the SAG-AFTRA actors union also goes on strike when its contract expires on Friday.
The strike has also cut back inventory, with some assistance available through California's Work Sharing Program, which allows employers to reduce workers' hours to four days a week and ask the state to cover the fifth temporarily. Nonprofits are also helping, with the Motion Picture and Television Fund receiving nearly 1,000 strike-related assistance requests from May through the third week of June.
The strike is rippling to states such as New Mexico that have become popular filming locations. The vintage Western clothing shop Kowboyz, a tourist destination in Santa Fe, has seen its stock decrease to about 1,500 pairs or almost half its typical stock. The strike has been brutal for the owners to bring back what they used to have, as productions in Santa Fe dried up during the strike.
History for Hire has also curbed purchases and had to turn down a striking writer who called hoping to earn some cash by selling her 1990s electronics. The strike has significantly impacted the community, with many businesses struggling to adapt to the new situation.
SOURCE: Reuters
