Movies such as Dune: Part Two, Challengers, and White Bird are seeing their releases delayed due to the ongoing strikes in Hollywood. Milken Institute Chief Global Strategist Kevin Klowden estimates that the economy will take a $5 billion plus hit from the ongoing strikes. Klowden joins Yahoo Finance Live to discuss his findings.

Klowden says, "the main thing we’re really factoring into it, is the lost wages. But when we talk about lost wages, we’re really not just talking about the salaries and impacts that people are feeling in Hollywood itself, but were feeling anywhere that filming is talking place across the country and in all the industries and all the small business and all the little side elements that combine to actually make what we consider Hollywood possible."

Major companies like Disney (DIS), Warner Bros. Discovery (WBD), Netflix (NFLX), and Amazon (AMZN), are "all getting affected, but we don’t see it as much on their bottom line as we do on the workers and we see it on the general expenditures," Klowden says. Klowden explains that these companies are able to "put off costs right now, but "the catch is" with these delayed movie releases, "their ability to get the revenue back to be able to get their expenditures back becomes harder and harder, and they forego revenues and they forego any ability to easily snap back out of this strike the longer it goes on."

Video Transcript

BRAD SMITH: Key issues between Hollywood writers and studios still linger as the strike heads into its fifth month, with "Dune-- Part Two" being the latest to push back its release date. Our next guest is warning of a $5 billion-plus hit to the economy as more delays pile up. Kevin Klowden, who is the Milken Institute Chief global strategist joins us now alongside Yahoo Finance's Alexandra Canal. Kevin, great to have you here with us on this. First, perhaps, we start at the top here. When we think about the economic impact here, what is all being factored into that?

KEVIN KLOWDEN: Well, the main thing we're really factoring into it is the lost wages. But when we talk about lost wages, we're really not just talking about the salaries and impacts that people are feeling in Hollywood itself, but we're feeling anywhere that filming is taking place across the country and all the industries, and all the small businesses, and all the little side elements that combine to actually make what we consider Hollywood possible. That means trailer rentals, that means dry cleaners, that means restaurants, that means catering companies, that means construction, that means trucking, that means all sorts of different factors, and all of them are being affected right now. And even if the concentration is in LA, it's in New York, it's in Atlanta, it's in Albuquerque, it's in Pittsburgh, it's in Chicago, and in a number of different places where filming actually takes place.