Writer Strike: Hollywood gears up for partial return to work after writers’ deal

According to the report, the Writers Guild of America (WGA), which speaks for approximately 11,500 writers in the film and television sector, arrived at an initial three-year agreement with prominent studios on the previous Sunday. Nevertheless, the deal still necessitates endorsement from the union’s leadership and its members.

As long as actors continue their strike, late-night and daytime talk shows could potentially recommence production in the near future once their writers receive the official approval from the Guild to return to their jobs, which could occur within the next few days or weeks.

Also Read: Hollywood strike: Writers Guild and studios reach tentative deal, says report

“The Drew Barrymore Show” is aiming to go back on the air in October, a source with knowledge of the plans told Reuters. Barrymore faced criticism after initially declaring her intention to revive the show in mid-September but later changed her mind and decided against it.

Spokespersons for late-night programs like “Saturday Night Live” and “The Tonight Show with Jimmy Fallon” declined to provide any information regarding the schedule for broadcasting new episodes.

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For scripted series, the resumption of filming depends on the SAG-AFTRA actors union reaching a deal with the studios. These actors went on strike in July, seeking increased wages and restrictions on the use of artificial intelligence in on-screen roles.

Film and television producer Todd Garner said he expects that once actors reach a deal, scores of productions will race to restart at once.

“Remember during the pandemic, when Long Beach had all of those ships waiting?” said Garner, referring to the logjam of cargo ships stranded in the southern California port. “That’s our business right now. I’m guessing there are 250 ships in the harbor right now.”

Major television shows and movies are contractually in first position with actors, Garner said. Work on uncompleted projects such his own movie, “Mortal Kombat 2,” will need to be finished first, before other projects can get under way.

Also Read: Hollywood strike: Why writers, actors protesting in the US. EXPLAINER

“Until we get all these big ships out of the harbor, nothing new is going to be started, unless it’s with actors who previously weren’t committed to something else,” Garner said.

Major media companies experienced a reversal in their stock performance on Monday after an initial uptick. Warner Bros Discovery saw a nearly 4% decline, Comcast’s stock dropped by nearly 1%, and Walt Disney’s shares decreased by 0.3%.

Investors in these media firms have been worried about the financial consequences of the strikes. Initially, the strikes had led to increased cash flows due to reduced spending, but they are now starting to impact earnings negatively, Reuters noted.

The deal with writers “will also mean the studios and streaming services will now focus fully on actors’ demands,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

“Already it’s likely that the big studios will face a significant hit in 12-18 months time, with so little in the pipeline and bosses are now desperate for new content to attract eyes to big and small screens.”

Warner Bros Discovery had previously cautioned that the company’s annual adjusted core profit would suffer a setback of up to $500 million due to project delays caused by disruptions.

Since the onset of the writers’ strike on May 2, the company’s shares have fallen by nearly 14%. Similarly, Paramount, Disney, and Netflix have experienced declines in the range of 20% to 45%. In contrast, the S&P 500 benchmark index has seen an increase of almost 5%.

In contrast, Netflix saw a 1.3% increase in its stock value. Experts have noted that the streaming giant has a more advantageous position compared to other media companies because it maintains production facilities and personnel in regions outside of the United States, which remain unaffected by the strike.

“The total spend on shows will be little changed, as studios will either cut spending from other elements of show production, or reduce the number of new shows they produce (a process already under way) to pay for increased costs from writers,” said Rosenblatt analyst Barton Crockett.

(With inputs from Reuters)

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Updated: 26 Sep 2023, 06:39 AM IST