The entertainment industry in Los Angeles faced major disruptions in 2023 due to strikes by key industry unions. This led to a sharp decline in filming and production activity, bringing economic impacts.
WGA and SAG-AFTRA Strikes Significantly Reduce Filming
The strikes by the Writers Guild of America (WGA) and SAG-AFTRA lasted for several months in 2023. According to data from FilmLA, the number of shoot days for permitted filming in the Los Angeles region fell 32% compared to 2022. This brings production activity close to the lowest levels on record.
The work stoppages meant that many major TV and film projects were forced to halt production. With writers and actors unavailable, the slump encompassed dramas, comedies, pilots, and other programming.
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The paralysis of the industry is reflected in data on TV and streaming premieres, which show the volume of new content released declined sharply amid the strikes. This created major financial repercussions across the industry.
Economic Impacts on Los Angeles
The entertainment business is a vital sector for the Los Angeles economy, generating billions in economic activity and employing hundreds of thousands. The region has been dubbed as the “entertainment capital of the world”.
But the strikes brought the industry to a near standstill. Analysts describe LA during this period as a “ghost town”, with usually bustling filming locations left abandoned.
This translated into substantial losses for businesses that support production, such as equipment rental facilities, catering and transportation providers, and vendors of production supplies. Tens of thousands involved in production crews also faced prolonged unemployment.
The wider economic ripple effects were sizable. Spending cuts by entertainment companies affected industries like hospitality and real estate. Tax revenues for state and local governments also took a major hit.
Outlook Going Forward
With the strikes now resolved, there are hopes the entertainment business can stabilize in 2024. But analysts warn it may take 12-18 months for filming activity to return to pre-strike levels in Los Angeles.
Much will depend on how quickly major projects that were halted can resume production. There will also be focus on whether more film and TV work chooses to locate outside of Hollywood.
Nonetheless, Los Angeles remains home base for most of the entertainment world. As long as uncertainty around future labor unrest can be avoided, the industry will likely reassert the region’s position as the globe’s top filming destination.
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