Hollywood writers and film and TV studios held last-minute contract talks on Monday to avoid a strike that would hamper TV production in an industry undergoing a seismic upheaval.
If Walt Disney Co (DIS.N) and Netflix Inc (NFLX.O) don’t agree, the Writers Guild of America might strike on Tuesday. The WGA has not struck in 15 years.
Shorter seasons and lower residuals have hurt writers amid the streaming TV boom. So they want salary raises and industry reforms that make them work more for less.
According to Guild figures, half of TV series writers make minimum wage, up from one-third in 2013-14. However, higher writer/producer median pay has dropped by 4% over the past decade.
“The way that it’s looking now is that there won’t be a middle class in Hollywood,” said Caroline Renard, a Guild liaison and writer for Disney Channel’s “Secrets of Sulphur Springs” and other series.
Negotiations include artificial intelligence. The WGA seeks protections against studios employing AI to rewrite authors’ scripts. Writers also wish to avoid revising AI-generated screenplays.
Industry economics are tough during talks. After spending billions on content to entice customers, Wall Street pressures entertainment corporations to make their money-pit streaming services viable.
As audiences shrink and advertisers move elsewhere, they also face declining television ad revenue. The recession also threatens.
The Alliance of Motion Picture and Television Producers (AMPTP), which represents Comcast Corp (CMCSA.O), Disney, Warner Bros Discovery (WBD.O), Netflix, and hundreds of production businesses, is committed to a fair arrangement.
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