2023-08-29 20:38:02
LOS ANGELES (AP) — The company had struggled for years, rocked by pandemic-induced production halts that began in March 2020. Last year, however, business at Valentino’s Costume Group finally picked up.
Hoping to capitalize on that good luck, the store moved in January to a North Hollywood space twice the size of its old building.
Then the Hollywood screenwriters and actors went on strike. Now, says co-owner Shon LeBlanc, Valentino’s can no longer afford to pay the rent.
“I feel a hollow in my chest because money is so tight,” says LeBlanc, lamenting the apparent lack of urgency for the American Alliance of Motion Picture and Television Producers to try to reach an agreement with the striking unions. “When is the mayor going to step in and say, ‘I’m ordering you to figure something out because the economy in Los Angeles is regarding to collapse?’
It’s been more than 100 days since the members of the Writers Guild of America (WGA) stopped working and more than a month since the actors’ union joined them. LeBlanc’s is just one story of many detailing the financial ripple effect.
Few corners of the entertainment industry have been unscathed: from studio rentals and set construction, to costume dry cleaning and prop transportation, it’s hard to find a sector of the Los Angeles economy that has escaped the repercussions.
“A movie shot in one day can generate tens of thousands of dollars,” says Kevin Klowden, chief strategist at the Milken Institute, a think tank that researches social and economic issues. “Depending on the level of activity, it can be hundreds of thousands of dollars.”
The previous writers’ strike, which began more than 15 years ago, took three months to resolve and is conservatively estimated to have cost $2.1 billion in lost production. This time, the number will be harder to measure because of how much production costs, locations, and timelines have changed in recent years thanks to technological improvements and increased globalization.
“We tend to think of productions as stand-alone,” Klowden says, when in reality a production often spans companies and even countries. Projects are often “sent” to New Zealand to add visual effects, she cited as an example. “The bigger a production, the more likely you are to see a bunch of different mentions of tax credits at the end.”
Both guilds seek to solve problems raised by the dominance of streaming services, which have changed every aspect of production, from how projects are written to when they are released.
For screenwriters, the Guild has said that the use of reduced staff, known as “mini rooms” (as opposed to the old “writers rooms”), for shorter periods of time has made it difficult to earn a decent income. The actors’ concerns include protecting their image from the use of artificial intelligence.
Although negotiations between the WGA and the AMPTP have resumed, there are no plans between the actors and the studios to return to the table to talk.
“I really don’t understand what the silent treatment is,” Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) president Fran Drescher told The Associated Press last week. . “It might be a tactical strategy to see if they can wait until we lose our resolve and then they can come up with a better deal themselves.”
In an earnings conference call in early August, Hudson Pacific executives tried to assuage concerns regarding the financial impact the strikes are having on their businesses, while still acknowledging the reality behind those fears. The company owns Quixote and Sunset Studios, two major studio and equipment rental companies in the entertainment industry.
“We are all very aware of the amount of money surrounding the industry in general and all the related businesses that are being affected. It will start to get quite painful,” warned its president and CEO, Victor Coleman, in response to questions regarding how long the strikes might last. “It will be detrimental. And I think everyone is very aware of that.”
The consequences go beyond entertainment and reach every corner of Los Angeles. The uncertain duration of the strikes weighs on the companies that feel the financial effects, and the consequences extend far beyond a single industry. Restaurants, cafes and even beauty salons close to the big studios – they are all desperate for a quick fix.
Patys restaurant, a Toluca Lake establishment that boasts regulars including Steve Carell and Adam Sandler, has seen a significant drop in business from diners and food orders for productions, according to owner George Metsos. In addition to the lost business from obvious customers (actors, writers, production crew members), there are also other regulars who have stopped coming: electricians, carpenters, and drivers who stop by for breakfast on their way to work at studios in the nearby valley.
Emmanuel Pelargos, owner of Astro Burger, across from Paramount Studios in Hollywood, says the regular presence of writers and actors at protests has not made up for the drop in business due to halted productions.
“Sometimes they come,” he says of the striking actors, “but mostly to go to the bathroom.”
Corrie Sommers, vice president of the Toluca Lake Chamber of Commerce, says the timing of the strikes, immediately following the financial recovery from the pandemic, hits small businesses especially hard.
“The strike…has pushed everyone back once more. Only this time there isn’t the help that is needed,” says Sommers. “No one is saying, ‘Here’s some free money to bail you out.’ Here’s some money so you can get ahead. That is no longer there. And it’s affecting everyone.”
Sommers, who is also a real estate agent in the area, mentioned several clients who were interested in buying houses, but changed their minds.
“Personally, in the last three months, regarding five buyers have said, ‘I’ll have to wait until next year because I don’t know what will happen,’” he says.
While many on strike acknowledge the financial burdens both to their peers in the industry and to their neighbors outside of it, the screenwriters are standing by their decision with renewed vigor at the demonstrations, following the much larger Actors Guild joined them.
Luvh Rakhe, a member of the WGA negotiating committee who has written for hit shows like “It’s Always Sunny in Philadelphia” and “New Girl,” is well aware of the financial costs. But she believes that people from all walks of life and professions know that it is necessary.
“I don’t think anyone is indifferent and happy regarding the momentary interruption in their lives,” says Rakhe, “but they understand why it happened and what they hope to achieve.”
Despite the cost to businesses, many of them say there is a general sense of solidarity. LeBlanc, co-owner of Valentino’s, continues to stress his support, even amid the uncertain future for his 25-year-old company. For her part, Los Angeles Mayor Karen Bass has not indicated she will intervene, but did say in a statement in early August that she is “ready to personally engage with all stakeholders in any way possible to help achieve this.” .
To keep the store afloat, Valentino’s has started a GoFundMe to pay the rent for now. LeBlanc is hopeful that if they can raise enough money for next month, the restart of school and Halloween productions will allow them to finish out the rest of the year.
“We have things ahead of us,” the owner said. “We just need to get some money to get over the hurdle.”
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