Thousands of television and movie writers in Hollywood are set to go on strike on Tuesday, as their union declared talks with studios and streamers over pay and other working conditions as a failure. The strike could halt late-night shows, and cause major delays to television series and movies scheduled for release later this year and beyond.
The Writers Guild of America (WGA) announced that board members, acting on behalf of the union’s membership, had voted unanimously to call a strike. The union accused studios, including Disney and Netflix, of having responses that were “wholly insufficient given the existential crisis writers are facing.”
The demand for higher pay and a greater share of profits from the boom in streaming is the main point of contention for writers. On the other hand, studios argue that they must cut costs due to economic pressures. The WGA alleges that studios are seeking to create a “gig economy” for writers, in which writing would become “an entirely freelance profession.”
During the previous strike in 2007, which lasted for 100 days, the Los Angeles entertainment industry lost around $2 billion. This time, the strike has occurred as writers seek higher pay and a greater share of profits from streaming, while studios have also been trying to reduce costs.
One of the issues under negotiation is reworking the formula that calculates how writers are paid for streaming shows. Writers are paid “residuals” from each reuse of their material, such as television reruns or DVD sales. However, with streaming, writers are paid a fixed annual payout, even if their work generates a massive hit like “Bridgerton” or “Stranger Things,” streamed by millions of viewers worldwide. Writers believe that these payouts are far too low.
The Alliance of Motion Picture and Television Producers (AMPTP) also stated that writers’ demands for “mandatory staffing” are a major sticking point, as studios would be required to hire a set number of writers, whether needed or not.
The AMPTP stated that overall residuals paid to writers hit an all-time high of $494 million in 2021, largely due to the boom in writing jobs driven by the explosion of streaming content. The studios are willing to engage in discussions with the WGA in an attempt to break the deadlock.
The strike has gained support from other Hollywood unions, including the actors’ SAG-AFTRA and the directors’ DGA, who are planning their own talks with studios this summer. However, the industry is concerned about the possible ripple effect of the strike, and the potential for significant financial losses.
