The Impact of the Hollywood Strike on Businesses Beyond Hollywood
ATLANTA, Georgia – In a show of solidarity, two of the largest labor unions in Hollywood, the Writers Guild of America and the Screen Actors Guild, have been on strike since May and July, respectively. As the strike enters its fourth month, there seems to be no end in sight. The writers and actors have brought entertainment production to a standstill, and the effects are being felt by businesses thousands of miles away from Hollywood.
A Hard-Hitting Blow for Local Businesses
Cindy Gano, the owner of Gano Inc. in Doraville, Georgia, is one of the many business owners feeling the impact of the strike. Gano Inc. is a wardrobe and costume supply shop that serves the film industry in Atlanta. Since the strikes began, the shop has lost nearly all of its business, leading Gano to reduce hours and switch to an “appointment only” schedule for in-store shopping. The shop is currently surviving on loans, but many other companies are on the brink of closure.
Gano expressed her concerns, saying, “I have enough in reserve for six months’ expenses. After that, I would probably have to start looking into bankruptcy or some other option that I don’t even want to think about. This business is my livelihood. I’ve poured my heart and soul into it as a single mother. I’ve worked tirelessly to build it from scratch. I’ve put in every ounce of effort and dedication, and I don’t want to see it disappear.”
The Stakes are High: Potential Collapse of Hollywood
The negotiations at the heart of the strike revolve around concerns about the unregulated use of artificial intelligence and its impact on actors’ pay in the new streaming ecosystem. While it remains uncertain when the labor unions and major studios will reach an agreement, business owners are hoping for a swift resolution.
Small businesses like Gano Inc. play a crucial role in supporting the film industry. According to the Georgia Screen Entertainment Coalition, approximately 15,000 businesses in Georgia serve the film industry, contributing billions of dollars in wages each year. The strike’s ripple effect is being felt by various establishments, including restaurants, dry cleaners, and antique shops, as they experience a drop in revenue and customers.
The Wider Impact: Georgia and Beyond
Georgia has emerged as a major hub for filmmaking, with four out of Hollywood’s six highest-grossing films being shot in the state, including the blockbuster hit “Black Panther.” However, Georgia is not the only smaller film hub struggling due to the strikes. States like Texas and Florida are also feeling the impact.
Kelsey Moore, the Executive Director for the Georgia Screen Entertainment Coalition, highlighted the interconnectedness of Georgia’s economy and its film industry. Moore stated, “We’re starting to see just how deeply integrated Georgia’s film industry is with our economy. Even businesses that didn’t realize they were part of the film industry are now seeing a drop in revenue and customers.”
A Ray of Hope
Despite the challenges faced by businesses, there is hope that they can weather the storm and be ready to bounce back once production resumes. Moore expressed optimism, saying, “We hope these businesses can hold on so that they are prepared when production comes roaring back.”
The Hollywood strike has undoubtedly caused significant disruptions and hardships for businesses beyond Hollywood. The strike’s duration continues to raise concerns about the future of the entertainment industry and its broader economic impact. As negotiations between the labor unions and studios persist, business owners and workers alike are eagerly awaiting a resolution that will bring an end to the strike and allow them to return to doing what they love.
