2023-05-02 04:14:10
Major studios and platforms, including Disney and Netflix, remain locked in dialogue with the powerful writers’ union, the Writers Guild of America (WGA).
Hollywood is on hold this Monday due to the deadlock in talks to prevent thousands of film and television writers from starting a strike at midnight that could be catastrophic.
Major studios and platforms, including Disney and Netflix, remain locked in dialogue with the powerful writers’ syndicate, the Writers Guild of America (WGA)which warned that it will declare the strike starting at midnight this Monday (07:00 GMT on Tuesday) unless they reach an agreement.
If a strike occurs, late-night talk shows could be halted immediately, and TV series and movies scheduled to premiere later this year and in the months to come could see long delays.
The last time there was a union conflict of this kind in Hollywood, in 2007, writers walked out for 100 days, costing the Los Angeles entertainment industry some $2 billion.
This time around, screenwriters are demanding higher salaries and a bigger share of the profits from on-demand content distribution over the internet.
On their side, studios and platforms say they need to cut costs due to economic pressures.
“Everyone feels there is going to be a strike,” a Los Angeles television writer told AFP, asking not to be named.
At stake is “determining how we will be financially compensated for streaming,” not just now but in the future, he added.
“Residual Rights”
Several of the issues are similar to those discussed in the industry globally.
Screenwriters say they struggle to make a living with salaries that are stagnant or devalued by inflation, while their employers profit and raise the salaries of their executives.
They estimate that there have never been so many writers working for the minimum wage set by the unions, while television networks hire fewer people to write ever shorter series.
One of the main disagreements is about how scriptwriters are paid for series broadcast by streaming platforms, which in spaces like Netflix tend to remain visible for years.
For decades, writers have been paid “residual royalties” for the reuse of their works, a percentage of studio revenue for the movie or show, or a flat fee each time an episode is played.
But with streaming, writers get a fixed annual payment, even if their work hits shows like “Bridgerton” or “Stranger Things” with hundreds of millions of viewers.
“These amounts are still too low for global reuse of WGA-covered programming on these mass services,” the union says.
The WGA calls for the revaluation of these amounts today “too low in view of the massive international reuse” of these programs. The union also wants to discuss the future impact of artificial intelligence on the profession.
The studios, represented by the Alliance of Film and Television Producers (AMPTP), note that “residual royalties” paid to screenwriters reached a record level of $494 million in 2021, up from $333 million ten years earlier. .
They also refute suggestions that the studios are falsely claiming financial hardship to bolster their bargaining position.
“Do you think Disney would fire 7,000 people for fun?” said a source close to the AMPTP.
There is only one platform [de streaming] which is profitable right now, and that is Netflix. The film industry is also quite a competitive sector”, he pointed out.
After the waste of recent years, when rival streaming platforms tried to grow subscribers at all costs, the studios are now under intense pressure from investors to cut spending and turn a profit.
“Piquets”
With midnight (0700 GMT Tuesday) as the deadline, the two sides could reach a last-minute deal, temporarily extend the talks or abandon them and prepare to picket.
Liz Alper, a WGA board member, tweeted that negotiations will continue “until midnight” and instructions will be sent to the writers shortly afterward on next steps “depending on whether or not an agreement is reached.”
“Today is a nervous day. We are all in this. Don’t push yourself,” she wrote.
The industry fears a domino effect. Other Hollywood unions have shown solidarity with the scriptwriters, such as SAG-AFTRA, for actors, and the directors, DGA.
Both will have their own conversations with the studios this summer.
“The greatest advantage we collectively bring to a strike is the withdrawal of our work,” the WGA wrote to its members on Sunday, according to Variety, which quoted a message it had access to.
“Picketing is a key tactic to show that we are all in this together.”
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