Hollywood faced disaster on Monday as talks to avert a potentially catastrophic strike by thousands of TV and film writers broke down just hours before a brief deadline.
Major studios and networks including Disney and Netflix are locked in talks with the powerful Writers Guild of America, which has threatened to order a walkout as of midnight Tuesday if a new deal is not agreed.
In the event of a strike, late-night shows could come to an immediate halt, and TV series and movies scheduled for release later this year could face major delays.
The last time talks failed, in 2007, Hollywood writers put down their pens and keyboards for 100 days, costing the Los Angeles entertainment industry an estimated $2 billion.
This time, the two sides are clashing as writers demand higher pay and a bigger share of the profits from the streaming boom, which they say is forcing studios to cut costs due to economic pressures.
“I think everybody feels there’s going to be a strike,” said a television writer based in Los Angeles, who asked not to be identified.
“This is an agreement that will determine how we are financially compensated by streamers,” not only now, but in the future, they said.
– “The Remains” streaming –
Many of the topics are familiar in contract negotiations in industries around the world.
The writers say it’s becoming impossible to make a living as wages have flatlined or fallen since inflation, even as employers turn a profit and fatten executives’ paychecks.
More writers than ever are working for union-mandated minimum wage, and shows are hiring fewer people to write shorter and shorter series.
A key issue is revamping the formula that calculates how writers are paid for streaming shows, which often end up on platforms like Netflix years after they were written.
For decades, writers have been paid “residuals” for the reuse of their material, such as from TV airings or DVD sales.
These are either a percentage of the film or show’s studio receipts, or a set fee each time an episode is repeated.
With streaming, writers get only a fixed annual salary, even if their work creates huge hits like “Bridgerton” or “Stranger Things” with hundreds of millions of viewers worldwide.
“These numbers remain too low to reuse WGA-covered programming on these massive services,” the guild says.
The WGA has vowed to “improve these remnants to share the global success of the programming that writers create.”
He also wants to address the future impact of artificial intelligence on writing.
– “Challenge” –
Unsurprisingly, the studios — represented by the Alliance of Motion Picture and Television Producers (AMPTP) — have a different view.
Overall waste paid to writers reached a record high of $494 million in 2021, largely due to a surge in writing jobs fueled by the explosion of streaming content.
That was up nearly half from $333 million a decade earlier.
They also dispute suggestions that studios are falsely claiming financial hardship to bolster their negotiating position.
“You think Disney would fire 7,000 people for fun?” said a source familiar with AMPTP’s position.
“There is only one [streaming] The most profitable platform at the moment, and that is Netflix. The film industry… that’s also quite a challenging segment.”
After the spending spree of recent years, when rival streamers sought subscriber growth at any cost, the bosses are now under intense pressure from investors to cut costs and turn a profit.
– ‘Piquet’ –
With the midnight (0700 GMT Tuesday) deadline approaching, the two sides could agree to a last-minute deal to temporarily extend talks or prepare for pickets.
The industry fears a ripple effect.
Several other Hollywood unions have expressed solidarity with the writers, including actors’ SAG-AFTRA and directors’ DGA. Both will hold their own talks with the studios this summer.
“The greatest strength we collectively bring to a strike action is to take away our jobs,” the WGA wrote to members Sunday in a message seen by Variety.
“Picketing is a key tactic to show that we’re all in this together, and that until a strike is resolved, it’s not normal.”
