The Future. Amid high inflation and the rising cost of living, production hubs like California, New York, and Georgia are suffering major revenue drops as they grapple with Hollywood strikes. If contract negotiations don’t lead to a new system where artists are paid enough to maintain decent living conditions, there could be devastating economic repercussions for not only individuals but also communities and states.
Entertainment’s economic impact
Axios reports production was already slowing down before the strikes (as early as January), as media companies tightened their belts in the face of a possible recession. This downturn hurt thousands of local businesses — including restaurants, hotels, and dry cleaners — because “as much as $250,000 can be injected into local economies per day when a film shoots on location,” according to the Motion Picture Association (MPA).
- California benefits from tax credits that make the golden state appealing for productions to shoot there.
- 185,000 New Yorkers work in the film and TV industry, representing 6.5% of New York City’s GDP.
- Georgia raked in $4.4 billion from movie and TV productions in 2022.
The film and TV industry generally pays over $186 billion in wages annually, per the MPA, so it’s a massive loss to workers when production grinds to a halt.
From middle class to… minimum wage?
Most people can’t afford to go without work for one month, let alone three to six months. So, it comes as a relief that the WGA will meet with the AMPTP to discuss negotiations today (!) for the first time since the writers strike began in May.
We’re crossing our fingers for a happy Hollywood ending.