Writers Guild strike is also having major impact on small businesses who rely on industry

HOLLYWOOD, Calif. (KABC) -- As the Writers Guild of America continue their strike, it will have a major impact on not only the industry but it will also impact small businesses that count on the entertainment industry for survival.

Small businesses are struggling and have already seen a major downturn. Eyewitness News spoke to some small business owners on the first full day of the strike on Tuesday.

"Today, we've just instantly seen a downturn in business," said Shawn Simon, President and CEO of EVS.

The strike has halted production everywhere, impacting script TV shows, movies and even late-night TV shows.

The union representing these Hollywood writers is pushing for an increase in pay and residuals, with an emphasis on streaming. With writers picketing, rental equipment is staying on the shelves at EVS.

But according to Simon, these last few months were already slow. He said studios didn't produce much this year knowing a potential strike was headed to Hollywood.

"This year, we felt revenue decrease by about 40%. And now, as of today, you can clearly already see things are softening up even more from the activity today, and even what's on the calendar moving forward," Simon said.

The last WGA strike in 2007 lasted more than 100 days, and cost the Southern California economy roughly $2 billion.

"Everybody in the business is just getting ready for a long ride. Nobody knows what's going to happen," said Toby Fulp, a rental manager at EVS.

The only way the writers' strike will come to an end is if the WGA and the Alliance of Motion Pictures and Television Producers, which represents Hollywood studios, can come to an agreement for a new contract.