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California Governor Gavin Newsom's office stated on Wednesday that he has reached out to all parties involved in the Hollywood strikes that have significantly impacted the industry, reported the Associated Press. He offered his assistance in facilitating a deal to restart the crucial entertainment sector, which plays a vital role in the state's economy despite indications of weakness. Anthony York, Newsom's senior advisor for communications, mentioned that both studio executives and actors/writers have not yet expressed formal interest in involving Newsom in negotiations. Nevertheless, Newsom and other high-ranking officials in his administration have been in contact with all parties during the ongoing strikes, which have extended deep into the summer blockbuster season.

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Also Read: Explained | Why Netflix might survive Hollywood strikes of actors, writers

While the two sides remain distant in their positions, Newsom is deeply concerned about the potential consequences of an extended strike on the regional and state economy. Numerous jobs, directly and indirectly, rely on the entertainment industry, including crew, staff, and catering.

In the past, a writers' strike that lasted over a decade ago had resulted in an estimated $2 billion loss to the state's economy. The current strikes, with actors joining picket lines, could have an even more substantial economic impact. These labour actions occur as the state faces a budget deficit of over $31 billion, partly attributed to a slowdown in the tech sector, another significant industry in California.

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Also Read: Bryan Cranston leads star-studded Times Square rally amidst SAG-AFTRA strike: We will not have you...

Double strike shuts down Hollywood

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The writers' strike began in May, with actors joining them later in the month. Both unions have concerns about their compensation in an era where fewer people go to movie theatres or watch cable TV, opting for streaming services instead. Additionally, they are worried about the potential effects of artificial intelligence on the creative process and the payment structure within the industry.

Back in May, the Democratic governor had initially offered to mediate a deal, expressing sympathy towards the unions' concerns regarding streaming and artificial intelligence.

Governor Newsom is currently in his final term in office and has been working to enhance his national profile as he looks toward his post-governorship life. Although he denies having plans to run for president, any involvement in resolving strikes that affect a prominent industry like Hollywood could elevate his standing on the national stage.

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