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How the Hollywood strikes affect UK companies

Companies that provide services to the Hollywood studios have seen work dry up as the strikes drag on
August 25, 2023
  • Videndum and Zoo Digital share prices down by more than half this year
  • Negotiations could happen after Labor Day weekend 

As the strikes in Hollywood rumble on, the shockwaves are being felt further and further down the production line. Two UK-listed companies are feeling the pain, alongside the legions of film professionals who rely on the industry for a living, who now fear productions won't get started again this side of Christmas. 

Translation and localisation services business Zoo Digital (ZOO) has launched a round of layoffs despite expressing optimism about a resolution to the dispute between the studios and writers and actors, who argue they are not getting a fair share of streaming revenue under current residual payments agreements, as well as concerns over the use of artificial intelligence. “Although we think work will resume soon, these strikes could go on for months, which means we have had to make this difficult decision to protect cash flow,” Zoo Digital chief executive Stuart Green told the Investors’ Chronicle.

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