Berliner Boersenzeitung - Hollywood writers strike as studio talks collapse

The strike means late-night shows are expected to grind to a halt immediately, while television series and movies scheduled for release later this year and beyond could face major delays.

"We have not reached an agreement with the studios and streamers," the Writers Guild of America (WGA) said in an email to members, obtained by AFP.

Studios' responses to its proposals had been "wholly insufficient, given the existential crisis writers are facing," the writers' union said, adding the strike had begun.

It came after the Alliance of Motion Picture and Television Producers (AMPTP), representing studios including Disney and Netflix, said negotiations had "concluded without an agreement."

WGA members took to social media urging solidarity among members.

"PENCILS DOWN! The writing factory is closed," tweeted Caroline Renard, a television and film writer.

Picketing is expected to begin in Los Angeles at 1:00 pm (2000 GMT) Tuesday, with similar demonstrations in New York, according to the Hollywood Reporter.

"They're not going to break this union," television writer David Slack, who has worked on "Law & Order" and other shows, wrote on Twitter in a post retweeted by the WGA, whose account logo now reads "Writers Guild On Strike."

"If they could do without us, they would. If they could break us, they would," Slack added. "They can't. They won't. #WGAStrong."

The strike could have damaging effects on the US entertainment industry.

The last time Hollywood writers laid down their pens and keyboards, in 2007, the strike lasted for 100 days, costing LA's entertainment economy around $2 billion.

This time, the two sides are clashing as writers demand higher pay, minimum guarantees of stable employment and a greater share of profits from the boom in streaming, while studios say they must cut costs due to economic pressures.

- 'Sticking points' -

Writers say it is becoming impossible to earn a living, as salaries have flatlined or declined after inflation, even as employers reap profits and fatten executives' paychecks.

More writers than ever are working at the union-mandated minimum wage.

A major source of disagreement during talks was the growing trend for TV shows to hire fewer writers, for shorter durations, to script series.

As talks collapsed Monday, the WGA accused studios of seeking to create a "gig economy" in which writing would become an "entirely freelance profession."

The AMPTP said WGA demands that studios hire a set number of writers "for a specified period of time, whether needed or not" were "primary sticking points."

Another issue on the table is reworking the formula that calculates how writers are paid for streaming shows, which often remain on platforms like Netflix years after they were written.

For decades, writers have been paid "residuals" from each reuse of their material, such as television reruns or DVD sales.

With streaming, writers simply get a fixed annual payout -- even if their work generates a smash hit like "Bridgerton" or "Stranger Things," streamed by hundreds of millions of viewers around the world.

The WGA also wants to address the future impact of artificial intelligence on writing.

- 'Broken' -

The studios note overall "residuals" paid to writers hit an all-time high of $494 million in 2021, largely thanks to the boom in writing jobs driven by the explosion of streaming content.

They also dispute suggestions studios falsely claim economic hardship to bolster their negotiation position.

After spendthrift recent years, when rival streamers chased subscriber growth at any cost, bosses are under pressure to curb spending and deliver profits.

"Do you think that Disney would be laying 7,000 people off for fun?" said a source familiar with the AMPTP's position.

In a possible olive branch, the studios' statement Monday said they remained "willing to engage in discussions with the WGA in an effort to break this logjam."

But the industry fears a ripple effect.

Several other Hollywood unions have voiced solidarity with writers, including the actors' SAG-AFTRA, and the directors' DGA. Both will hold their own talks with studios this summer.

"Here is what all writers know: the companies have broken this business," said the WGA.

"We had hoped to do this through reasonable conversation. Now we will do it through struggle."

(G.Gruner--BBZ)