Threat to Late Shows and Series? Thousands of American television and film screenwriters are threatening to go on strike in Hollywood on Monday for a pay rise a few hours before the end of the notice period because of a lack of agreement.
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Major studios and platforms, including Disney and Netflix, are in talks with the powerful writers’ union, the Writers Guild of America (WGA), which is threatening to order a post-midnight strike if a deal isn’t reached.
This would result in an immediate disruption to hit shows like late-night shows and significantly delay TV series and films scheduled for release this year.
The last major social movement in Hollywood dates back to the 2007-2008 screenwriters’ strike that paralyzed the American audiovisual industry. A 100-day conflict that had cost the sector $2 billion.
Screenwriters are demanding higher salaries and a bigger share of streaming profits as studios say economic pressures are driving them to cut costs.
“Everyone has a feeling that there’s going to be a strike,” said a Los Angeles screenwriter, who asked not to be named. At stake is “an agreement that will determine how we get paid for streaming,” both today and in the future, he added.
The screenwriters say that with wages and salaries stagnating or even falling due to inflation, they can barely make a living from their craft while their employers make profits and raise the salaries of their executives.
They believe they have never been so numerous to work for the minimum wage set by the unions, while television networks are hiring fewer people to write shorter and shorter series.
One of the biggest disagreements concerns how screenwriters are paid to stream shows, which often remain visible on platforms like Netflix for years after they are written.
For decades, screenwriters have been collecting “residual rights” for the further use of their works, for example in TV reruns or DVD sales.
It’s either a percentage of the revenue the studios make for the film or show, or a fixed amount paid for each rerun of an episode.
When it comes to streaming, authors receive a fixed amount every year, even if their works are global hits such as the “Bridgerton” or “Stranger Things” series, which are seen by hundreds of millions of viewers worldwide.
The WGA calls for the revaluation of these amounts today “much too low in view of the massive international re-use” of these programs. She also wants to discuss the future impact of artificial intelligence on the screenwriting profession.
The studios, represented by the Alliance of Film and Television Producers (AMPTP), point out that “residual rights” paid to screenwriters hit a record $494 million in 2021, compared to $333 million a decade ago previously on the explosion of screenwriting jobs related to the rising demand for streaming.
After being wasteful in recent years when competing broadcasters sought to increase subscribers at any cost, bosses are now under intense pressure from investors to cut spending and turn a profit.
And they deny faking economic difficulties to strengthen their position in negotiations with screenwriters.
“Do you think Disney would fire 7,000 people for fun?” said a source close to AMPTP. According to her, “right now, there’s only one platform that’s profitable, and that’s Netflix.” The film industry “is also a very competitive industry.”