The Writers Guild of America has called for the first strike in 15 years after negotiations for a labor deal with Hollywood studios broke down ahead of the current deal's expiration on Monday.
Why it matters: A work stoppage threatens to cripple Hollywood's already-messy transition to the streaming era.
Details: The strike will begin at 12:01am on Tuesday local time, with writers taking to the picket line. During that time, all WGA members will immediately cease any and all writing duties, though they may perform other duties like producing or directing.
- Given the time of the year, most broadcast shows will be in-between seasons. But a strike going deep into the summer would lead to delays for the 2023-24 season.
- Late-night and daytime television shows will immediately halt production.
- Streaming services and film studios are less affected initially because they produce their content well in advance.
The big picture: The streaming era has upended traditional Hollywood business practices, and writers feel they've been left out of the "peak TV" content boom.
- Streaming services that have dominated the TV landscape are ordering fewer episodes per season and ending shows earlier than their broadcast and cable TV forefathers. Additionally, residuals for streaming shows are far less than what writers would get from TV syndication deals.
- The rapid growth of AI is causing concern among writers that studios will look replace some of their work by machines.
- "The companies' behavior has created a gig economy inside a union workforce, and their immovable stance in this negotiation has betrayed a commitment to further devaluing the profession of writing," the WGA said in a statement Monday night.
The other side: The Alliance of Motion Picture and Television Producers, which represents the major studios and production companies, argued that its latest proposal included "generous increases in compensation" and increases in streaming residuals — and added that it was prepared to improve that offer.
- "The AMPTP member companies remain united in their desire to reach a deal that is mutually beneficial to writers and the health and longevity of the industry, and to avoid hardship to the thousands of employees who depend upon the industry for their livelihoods," the AMPTP said in its own statement.
Of note: The strike comes ahead of upfront presentations to advertisers for many of the top media companies like Comcast, Disney and Warner Bros. Discovery.
Flashback: The last WGA strike came in 2007-08 and lasted for 100 days.
What's next: This is just the beginning: The studios' labor contracts with the Directors Guild of America (DGA) and SAG-AFTRA, which represents the actors, both expire at the end of June.
- Both the DGA and SAG-AFTRA have voiced support for the WGA, but will continue working during the the WGA strike.
- The DGA will begin negotiations on May 10, while SAG-AFTRA is slated to start their talks in early June.
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