The TV and film writers' strike has crossed 100 days since the Writers Guild of America and the Alliance of Motion Picture and Television Producers failed to reach an agreement on a new contract, and it's likely to have cost the California economy at least $3 billion so far. That's according to estimates from Todd Holmes, a professor of entertainment industry management at Cal State Northridge, based on economic analysis from the last Writers Guild of America strike that started in 2007. That strike led to 37,700 lost jobs and a $2.1 billion blow to the California economy, according to the Milken Institute, an economic think tank.

 Hollywood strike already has $3 billion impact on California economy, experts say: It's causing 'a lot of hardship'

The strike by TV and screenwriters has crossed 100 days since the Writers Guild of America and the Motion Picture and Television Producers Alliance failed to reach an agreement on a new contract, likely costing the California economy at least $3 billion. far.

That's according to estimates by Todd Holmes, a professor of entertainment management at Cal State Northridge, based on an economic analysis of the last Writers Guild of America strike, which began in 2007. That strike resulted in 37,700 job losses and a $2.1 billion hit California's economy, according to the Milken Institute, an economic think tank.Holmes took that $2.1 billion figure and adjusted it for inflation and other factors to come up with a new strike loss of up to $3 billion for the state of California today.

It's likely to be even higher now, considering other members of the Screen Actors Guild-American Federation of Television and Radio Artists, the union representing various artists, joined the demonstrations in July.Broad impacts from restaurants to real estate

The strikes aren't just for writers or actors.

Shutdown productions impact all kinds of businesses, including production catering companies, restaurants near studios, props, set builders, dry cleaners, professional drivers, florists and more."The environmental industry impacts a lot of different people," Holmes says, "and it causes a lot of hardship for them."

People in entertainment jobs and entertainment-related roles account for nearly 20% of income in the LA area, says Lee Ohanian, an economics professor at the University of California, Los Angeles."The economic impact is even greater because the average pay in the industry is substantially higher" than the average earner, he told CNBC Make It.

This can have a big knock-on effect if these workers pull back on their discretionary spending, especially for big purchases like buying a car or a house. In one high-profile case, actor Billy Porter told the Evening Standard that he was selling his house to save money during the strikes.

The housing crisis could push rents up and drive lower-income people out of the state, said Kevin Klowden, lead author of the Milken report, according to the LA Times: "We saw an exodus with the last writers' strike," he said.Statewide, about 700,000 people are employed in entertainment jobs, nearly 5% of California's workforce, Ohanian says.

How long can a strike last?

Some experts say the current strike could set the record for the longest writers' strike in Hollywood history. The 1988 strike lasted 22 weeks, while the 1960 strike (also the last time writers and actors went on strike) lasted 21 weeks. The current strike, now entering its 15th week, would break both of those records if it continues through mid-October.

"I could easily see it was broken," Ohanian says. "Employees usually have less of an economic cushion than the corporate side, so in long strikes, unions often tend to back down. But we're not seeing that yet, and it could certainly hit the six-month mark."

If the strikes last through October, Holmes estimates the total economic cost will be closer to $4 billion to $5 billion."With the two strikes, if it were to go beyond November, that estimate would be closer to $5 billion and more," Holmes says.Why This Strike Could Break Records: Union Solidarity Versus Disparate Studies

On Friday, WGA leaders met with negotiators from the Alliance of Motion Picture and Television Producers, which represents Hollywood studios and streamers, for the first time since the strike began on May 2. However, the two sides have been deadlocked over two key proposals to establish a minimum number of employees in episodic TV and a guaranteed minimum number of weeks of employment.

The union also confirmed it is seeking the right to honor other unions' picket lines, meaning that even if the WGA reaches a deal, writers will want to honor striking SAG members and work won't resume until both strikes are resolved, Variety reports. The WGA represents 11,500 members, while SAG-AFTRA represents roughly 160,000 members.

However, "as unified as the writers and actors are, it's more disparate on the studio side," Holmes says. That's because in addition to traditional studios like Disney and Warner Bros. Discovery, AMPTP represents tech companies like Amazon and Apple that have changed the streaming landscape.

For these tech companies, the production and entertainment side of their business is a much smaller part of what they do, Holmes says, so it will be easier for them to delay negotiating a deal compared to traditional studios, where there may be work disruptions. have a greater impact on their bottom line.Politicians could bring an end to strikes: 'Trying to mediate fight between two of his childrenBoth Holmes and Ohanian are interested in how politicians will react to a strike that could decide its end.

For example, in March, L.A. Mayor Karen Bass publicly acted as a mediator between school workers SEIU Local 99 and the Los Angeles Unified School District, with leaders from both sides praising the mayor for being a "partner who was there" all the time" to broker an agreement. reports the LA Times.

Holmes expects to see more consistent statements from Bass and California Gov. Gavin Newsom about reaching a resolution to end the strikes. Both are likely to rely on reports of how the strikes are affecting support workers (such as caterers and construction workers) who are not involved in the current negotiations, Ohanian says."They could be quasi-representative of all the people who are indirectly affected in the industry," he says.

On Friday, Los Angeles Mayor Karen Bass called for an "immediate" resolution to the strikes, saying she was "prepared to engage personally with all parties involved in any way possible to help that happen," according to Variety. Bass did not take sides in the negotiations, but said the resolution had to be "fair and equitable" and that "the economic conditions of the entertainment industry are changing and we have to respond and evolve to that challenge."

One complicating factor will be how Bass and Newsom frame their statements with respect to their donors. While both are invested in support from unions, as well as writers and actors, they also receive donor funding from studio heads represented by AMPTP.

"She's trying to mediate a fight between two of her children, and any deviation from pure neutral will be seen as damaging to the other side," Ohanian says. “I still think they can help both sides understand where they're coming from, but it's extremely complicated.

The glitz and glamor of Hollywood is not immune to the reality of labor disputes, and ongoing strikes in the entertainment industry have already left a formidable mark on the California economy. Experts have calculated a staggering $3 billion economic impact as a result of these strikes, revealing the extent of the hardships faced by various stakeholders. In this article, we delve into the profound effects of these strikes on California's economic landscape and the ripple effects they are causing throughout the industry.

Economic toll

The entertainment industry is a vital economic engine in California, contributing significantly to the state's revenue and employment. However, the recent wave of strikes has cast a shadow over this glittering sector. Experts agree that the economic impact of these strikes has reached an alarming $3 billion, a figure that continues to rise as the disruption continues. The multifaceted impact of the strikes touched every corner of the industry, from production delays to distribution bottlenecks, and ultimately affected the broader state economy.

Difficulties that everyone faces

The strikes set off a domino effect, triggering a series of hardships that hit all levels of the entertainment ecosystem. Crew members, who are the backbone of any production, face uncertain job prospects and reduced income due to stalled projects. Actors, writers and directors, while highly visible, are also feeling the strain as their job opportunities dwindle. Associated businesses that rely on industries such as catering, transportation and local retailers are seeing a sharp drop in demand, exacerbating the overall economic distress.

Supply chain disruption

One of the most far-reaching consequences of the strikes is the disruption of the entertainment industry's supply chain. Manufacturing houses were forced to halt or delay projects, affecting demand for various goods and services. This chain reaction hit industries beyond entertainment and caused a domino effect that spread to the manufacturing, hospitality and transportation industries. Such widespread disruption underscores the interconnectedness of the economy and reveals how problems in one sector can reverberate across the region.

As the strikes take their toll, policymakers face increasing pressure to intervene to mitigate the economic impact. Industry representatives and unions are urging constructive dialogue with the goal of reaching a solution that addresses the concerns of all parties involved. Finding common ground is necessary not only to restore California's economic life, but also to ensure the livelihoods of those who depend on this industry for their income.

The $3 billion economic impact of the ongoing Hollywood strikes in California is a stark reminder that even the brightest industries are not immune to labor disputes. The far-reaching consequences of these strikes have exposed the fragility of interconnected supply chains, and no sector has been spared. As the industry grapples with its internal problems, the broader California economy is bearing the brunt of the disruption. Ultimately, a quick and amicable resolution to the strikes is critical not only to saving the financial health of the entertainment sector, but also to reviving the economic pulse of the Golden State.