The US economy seems to be getting a boost from Hollywood - but Hollywood is missing out
(Photo by In Pictures Ltd./Corbis via Getty Images)
- Hollywood seems to be boosting the US economy, but its home state of California is being left out.
- The "Barbenheimer" craze has lit up the box office and driven consumer spending in the economy.
- But Hollywood strikes over the last 100 days have likely dealt a $3 billion blow to California.
Hollywood has started filling movie theaters again with box-office hits like "Barbie" and "Oppenheimer," but ongoing strikes in its home state are limiting the benefits for its home state of California.
Crowds have flocked to see the highly anticipated blockbuster films, with some people returning for multiple viewings. The excitement has been a boon for struggling movie chains, still reeling from the impact of COVID-19 lockdowns.
AMC Theatres has emerged as one big winner from the "Barbenheimer" phenomenon. It enjoyed the best week in its history between July 21 and July 27, as the pair of movies fueled the largest single-week admissions revenue in its 103-year history, per Boxoffice Pro.
Indeed, Greta Gerwing's "Barbie" recently surpassed $1 billion at the global box office just three weeks after its release, making it one of the highest-grossing movies ever.
The rush of moviegoers has helped boost the US economy, with consumers showing they're willing to spend. Consumer spending is a key driver of economic growth, representing 68% of US GDP.
The LA-made movies couldn't come at a better time for the US economy, as higher interest rates and inflation spark fears of a looming recession among investors.
However, the benefits of Hollywood's big summer have been at least partly offset in its home state of California.
A 100-day strike among writers and actors in Hollywood has likely dealt a $3 billion blow to California's economy so far, experts say. The walkout is a meld of two unions: The Writers Guild of America and the actors' union SAG-AFTRA, both protesting over the lack of income they're getting from streaming platforms and worries about the threat of AI to their jobs.
The strike isn't just impacting writers and actors either. Local restaurants, catering companies, construction workers, dry cleaners, and more are also hurting from the shutout.
Should the strikes last till October, California could see up to a $5 billion hit to its economy, entertainment industry expert Todd Holmes told CNBC's Make It.
A dream for the US but a nightmare for California: Hollywood is having a double-edged effect on the nation.
from Business Insider https://ift.tt/kvuj7SL
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