The impact of writers and actors strike on the global TV and film production industry

Maria Rua Aguete, leading global entertainment analyst and Omdia Senior Director, deep explains the diverse key factors that created the current uncertain scenario.

18 JUL 2023

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The American film industry is facing a renewed crisis that is erupting from within its creative core. A little less than two decades after the infamous 2007-2008 Writers Guild of America (WGA) strike, Hollywood's creatives have once again downed pens. This time, however, the context is vastly different, with box office revenues still struggling to recover from the COVID-19 pandemic and the role of artificial intelligence (AI) in the creative process coming under intense scrutiny.

Despite the gradual return to physical theatres, "box office revenues are still below pre-pandemic levels," confirmed Omdia last research. Consumer habits, driven by convenience and learned behaviors, still lean towards streaming services that pick up new users during lockdowns. Omdia’s view is that "while the box office will recover, the levels seen pre-pandemic are still a number of years away," asserted Maria Rua Aguete, Omdia Senior Director.

In the face of these challenges, a historical comparison is intriguing. "The last WGA strike became an unexpected catalyst for the small screen, heralding an era of high-quality, glossy drama that not only rivaled the cinematic narrative but also pushed the boundaries of storytelling, thereby attracting a broader audience demographic," she mentioned.

Alongside this, the strike also saw "an upswing in non-scripted content – reality shows, game shows, and talk shows became mainstays," she confirmed. It was, in a way, an unintended consequence of the strike that resulted in an unexpected diversity of content, leaving an indelible mark on the television industry.

Today, "the core issue of contention extends beyond traditional labor grievances. It reaches into the realm of AI, a technological advancement that has slowly but surely, made inroads into the creative process. For many writers, the growing use of AI in screenwriting presents a double-edged sword," she explained.

On one hand, "there's the fear of job replacement – an understandable concern given AI's efficiency in generating content. But on the other, AI also offers tremendous benefits, such as the ability to generate plot ideas swiftly, automate script formatting and contextual accuracy, create personas, and test character interactions. It's not just about cost and efficiency, as AI can also provide tools that enhance creativity," Rua Aguete said.

"Hollywood stands at a precipice: if it chooses to resist the use of AI, it might alleviate the immediate concerns of the writers, but at a potential long-term cost. Hollywood’s competitors, in all their forms, are far less beholden to their talent and will seize any opportunity to outcompete," she anticipated. "While Hollywood sits in the past, could a new AI-driven dawn rise from outside Tinseltown rise without them?" she asked.