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Thousands of film and television writers will go on strike starting Tuesday, sending Hollywood into an uproar as the entertainment industry grapples with the changes brought about by the global streaming boom.
The Screen Writers Guild of America (WGA) has called its first strike in 15 years after failing to reach an agreement with studios including Disney and Netflix. The last strike lasted 100 days and cost the California economy more than $2 billion.
“The behavior of the companies created a gig economy within a unionized workforce, and their unwavering stance in this negotiation demonstrated their commitment to further devaluing the writing profession,” the WGA said in a statement on its website.
The union represents around 11,500 screenwriters in New York, Los Angeles and other US film capitals. Members were scheduled to begin picketing outside Hollywood Studios from Tuesday afternoon.
The Motion Picture and Television Producers Organization (AMPTP), which represents the studios, said late Monday that it had offered screenwriters “generous pay increases,” but the two sides were unable to reach an agreement.
Media companies face a difficult economic environment. The conglomerates are under pressure from Wall Street to make their streaming services profitable after investing billions of dollars in programming to attract subscribers.
The rise of streaming has resulted in declining TV advertising revenues as traditional TV audiences shrink and advertisers look for alternatives. In addition, there is also the threat of a recession in the economy as a whole.
The last WGA strike in 2007 and 2008 cost the California economy an estimated $2.1 billion.
Until the conflicts are resolved, part of the television program is interrupted.
Latenight shows like Jimmy Kimmel Live and The Tonight Show with Jimmy Fallon, which use writing teams to write topical jokes, are expected to cease production immediately.
This means new episodes won’t be available during traditional television hours or on streaming services that make them available the next day.
Later, the strike could delay the fall television season. Writing for fall shows typically begins in May or June. As the walkout drags on, networks will increasingly fill their schedules with unscripted reality shows, newscasts and reruns.
Netflix may be protected from immediate impacts by being global and having access to production facilities outside of the United States.