The WGA approves a Hollywood writers strike, signaling a potential shift for streaming
EXT. HOLLYWOOD — DAY… In a nearly unanimous vote this week, 9K members of the Writers Guild of America approved a TV and movie writers strike if a new contract agreement isn’t reached by May 1 with studios (aka: their employers). A record 80% of WGA members turned out to vote, signaling clear dissatisfaction among the teams creating your fave shows.
Buffering: Streamers like Netflix and Disney+ are playing a major role in the negotiations. Streaming has led to shorter TV seasons and exclusive rights, causing a steep drop in residual payouts to writers (watching “Succession” five times doesn’t count as a rerun). The WGA wants a new formula to account for the shift.
WG-AI: The union also wants studios to regulate the use of AI — and to bar studios from lowering pay or reducing rights and credits for content that leverages the tech.
Not guaranteed: The WGA authorized a strike in 2017 but ultimately reached a last-minute deal to avoid one. The last WGA work stoppage, in 2007, lasted three months and cost California over $2B.
Lights, camera, no action… While a strike isn’t certain, Hollywood is making moves to prepare. Streaming platforms have several shows wrapped and ready to roll out in the event of a stoppage, and renewals to shows like “Abbott Elementary” were given out earlier than usual. Networks are also bulking up on animated shows (which are written far in advance) and unscripted TV (maybe Netflix can figure out live reunions by May).
Old rules can catch up to disruptors… Now that streaming has transitioned from industry disruptor to industry standard, evading old issues that networks and studios know well (like labor disputes) can only last so long. Similar battles are underway in other tech-disrupted industries like ecomm and ride-hail (think: Uber's gig work and taxi union issues).