Why the Actors’ Strike Has Already Impacted Hollywood’s Bottom Line
By Movieguide® Contributor
As the SAG-AFTRA strike continues, the inability to promote movies through actors’ social media or press tours has already cost studios tens of millions of dollars.
“Not having stars to do publicity for your movies is a huge detriment to the overall campaign,” a top studio executive told The Hollywood Reporter. “You lose the cultural impact of having talent talk about the film. Some movies wouldn’t have worked anyway, but they have more of a shot.”
The new Ninja Turtles movie, for example, had nearly a dozen big-name actors, including Seth Rogan, Jackie Chan, Maya Rudolph and Post Malone, who would have drummed up significant interest in the movie before it was released. Instead, director Jeff Rowe had to bear the burden, resulting in a “green carpet” opening with little coverage.
“It was bizarre,” said a source. “Can you imagine what the group photo [of stars] would have been like on the carpet?”
While the movie opened to a reasonable $43.1 million at the domestic box office, Hollywood insiders believe it will take a $7 to $10 million hit because the actors couldn’t promote it.
There has yet to be an impressive box office run since the actors’ strike paused publicity tours in mid-July. Summer hits BARBIE and OPPENHEIMER were the last two movies to benefit from publicity, both ranking in the top 5 for this year’s box office earnings.
Not wanting to lose profits, many studios are now pushing back the release of their major movies.
Sony’s Orlando Bloom-led GRAN TURISMO was pushed back from its early August release, instead releasing it at the end of the month and holding sneaks over two weekends to build interest, The Hollywood Reporter shared.
MGM’s CHALLENGERS, a Zendaya-led tennis drama, has been pushed to 2024. It was originally slated to open the Venice film festival.
DUNE: PART 2 might also see a major delay since distributor Legendary has insisted it will get a full press tour. While the movie isn’t set to release until early November, the publicity campaign would begin in September. With the current state of the strikes, the movie will likely see a delay.
“The inability of stars to actively participate in the promotion of their films has definitely set the industry on edge,” said box office analyst Paul Dergarabedian of Comscore. “While the box office impact is difficult to quantify with mathematical certainty, there is no question that this time-honored tradition has value.”
While Hollywood executives have assured their shareholders that the strikes have not yet impacted their profits, it is clear that isn’t true. The effect of a months-long break in production has yet to shake the studios, but they have started to feel the impact of the strikes.
Movieguide® previously reported on the impact of the strikes:
Since the writers’ strike began in May, Paramount’s stock price has fallen more than 30%, Disney’s has fallen 13% and Warner Bros. Discovery has seen a 7% drop in its stock price. Shares of WBD, the company that owns HBO and CNN, has fallen nearly 50% since April 2022.
Streaming services have taken a hit, not only because their media production suffers from the strikes, but also because their business is a major component in the complaints of the strikers. The writers’ and actors’ guild both believe they are not being fairly compensated for their media that appears on streaming sites. Because of the inadequate compensation, many jobs in the industry that were previously stable have become unsustainable to keep up with the rise of American cost of living.
Now more than ever we’re bombarded by darkness in media, movies, and TV. Movieguide® has fought back for almost 40 years, working within Hollywood to propel uplifting and positive content. We’re proud to say we’ve collaborated with some of the top industry players to influence and redeem entertainment for Jesus. Still, the most influential person in Hollywood is you. The viewer.
What you listen to, watch, and read has power. Movieguide® wants to give you the resources to empower the good and the beautiful. But we can’t do it alone. We need your support.
You can make a difference with as little as $7. It takes only a moment. If you can, consider supporting our ministry with a monthly gift. Thank you.
Movieguide® is a 501c3 and all donations are tax deductible.
Now more than ever we’re bombarded by darkness in media, movies, and TV. Movieguide® has fought back for almost 40 years, working within Hollywood to propel uplifting and positive content. We’re proud to say we’ve collaborated with some of the top industry players to influence and redeem entertainment for Jesus. Still, the most influential person in Hollywood is you. The viewer.
What you listen to, watch, and read has power. Movieguide® wants to give you the resources to empower the good and the beautiful. But we can’t do it alone. We need your support.
You can make a difference with as little as $7. It takes only a moment. If you can, consider supporting our ministry with a monthly gift. Thank you.
Movieguide® is a 501c3 and all donations are tax deductible.
