Entertainment industry loses $10 billion in one day because of writers' strike
Topics: Money, Film and TV, US News
Katherine Sidnell
Featured Image Credit: Xinhua / Alamy Stock Photo/MediaPunch Inc / Alamy Stock Photo
Topics: Money, Film and TV, US News
The entertainment industry has lost over $10 billion (£7.9b) in a single day due to the writers' strike.
Despite their pens being down for just 24 hours, the industrial action has caused major concerns in the stock market with the share value of companies like Paramount and AMC making major losses yesterday.
As the Writer’s Guild of America strike continues, many studios and shows have come to a standstill.
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Earlier this week, many beloved talk shows went silent as Hollywood began to shut down - including The Late Show, Jimmy Kimmel Live and The Tonight Show.
Other series which affected include Abbott Elementary and Stranger Things, with the final season being delayed by the industrial action.
In a statement on Twitter, showrunners the Duffer Brothers said that it was ‘not possible’ to produce the nostalgic series without writers.
"Writing does not stop when filming begins,” they wrote, adding: “While we’re excited to start production with our amazing cast and crew, it is not possible during this strike. We hope a fair deal is reached soon so we can all get back to work.”
However, it’s unclear when that will be as the previous strike in 2007 lasted over three months.
The current strike began on May 2 after negotiations between the union and studios broke down over pay.
Many screenwriters have been frustrated with increasing studio profits, whilst writers' salaries have stalled or dropped in recent years.
There has also been a dispute over streaming services, with many writers not getting a proportion of the revenue when their shows move to platforms like Netflix or Disney+.
Those companies that have been affected by the industrial action saw their shares tumble yesterday, as the stock market became increasingly concerned about the strike.
Paramount Global, Comcast, and AMC Networks all took a hit whilst other studios managed to stay stable throughout the chaos.
Brokers will be wondering how long that can continue though, as major blockbusters such as Wonka, Ghostbusters and Aquaman 2 are possibly being affected.
Viewers can also expect some lacklustre telly, as studios turned to reruns or segment fillers like Conan seeing how long he could spin his wedding ring on his desk (yes, really) during the 2007 strike.
You have been warned.