Hollywood actors authorize potential strike, following in footsteps of writers

David McNew/Getty Images News

The drama in Hollywood is heating up just as there appeared to be a breakthrough for the creative industry. On Sunday, the Directors Guild of America inked a tentative three-year contract with major studios and streamers, though the Writers Guild of America and Screen Actors Guild are still holding out. In fact, the former has been on strike for six weeks, while the latter just authorized a potential strike if an agreement cannot be reached by June 30.

What are the fights about? At issue are wages and benefits, as well as royalty payments like global streaming residuals. Artificial intelligence is also at play, with the unions fighting for protections that AI won't replace its members. Writers additionally say that tech companies like Netflix (NASDAQ:NFLX) are hiring for shorter stints and lower wages, which is hindering the creative process. It comes as many studios absorb heavy losses associated with streaming, making them think twice about their bottom line during the negotiations.

A walkout by the Writers Guild of America has already shut down the final season of Netflix's (NFLX) Stranger Things, an HBO (NASDAQ:WBD) prequel of Game of Thrones, and paused production on Disney's (NYSE:DIS) Thunderbolts and Blade. A strike by actors would trigger a broader shutdown across Hollywood, while ramping up pressure on companies that need to support their streaming services and TV programming schedules. Other studios involved include Amazon (AMZN), Apple (AAPL), NBCUniversal (CMCSA), Paramount (NASDAQ:PARA) and Sony (SONY) - under the umbrella of the Alliance of Motion Picture and Television Producers.

What's next? "For now, the studios/streamers aren't in a rush to be flexible because the strike could eventually allow them to shed unprofitable long-term deals," writes SA analyst The Entertainment Oracle, "but that's also a dangerous long-term game." If prolonged, studios could turn to reality or unscripted shows, and internationally produced content, but the financial impacts will eventually catch up. Moody's has warned that an extended strike could hurt the credit ratings of "weakly positioned" media companies, while Paramount (PARA) CEO Bob Bakish has said that the situation will "ultimately depend on the duration of the strike."

Related to this story

• Paramount to cut 25% of workforce across entertainment divisions
• Walt Disney plunges as Wall Street awaits better days for streaming profits

Comments

[investor1374]

I've identified tons and tons of older I content I have either (1) never seen, (2) seen only bits and parts years ago, (3) watched in full so long ago I don't remember many details. I could go through all that prior content and never need a single new piece of work from Hollywood. Go on strike fellas, it won't affect me in the least.

[dixie]

Todays's actors are mostly "she-men" . . ugh . . . throw-up

[The Exception]

Movie goers should go on strike and stop going to movies with all the crap being pumped in to theaters.

[Mojo Rising]

@The Exception They have. It’s called streaming, YouTube, and Tic Tock

[Interventizio]

I wouldn't fall into despair if I was them, there are still the truck stop diner restroom walls to write on. It means they'll have to improve the quality of their work though.

[GameBuzz]

Great, all we need are more singing competitions, quiz shows and housewives/couples arguing. Eeeesh.
You get what you pay for. Thank goodness for reruns of the good stuff. The Goldbergs were smart to end while still fun.

[Non-GAAP Earnings]

@GameBuzz Or you know you can, like, turn the TV off. :)

[crossledge]

@Non-GAAP Earnings creative industry
It’s still 1970 on channels 3,6 and 10

[Djreef1966]

Well, it’s not like they have a choice.

[geocsmith]

All the good shows and movies have already been made.

[nerd_rage]

@geocsmith Everything's been crap since Shakespeare. Or maybe Euripides.

[CWatsonSD]

If this means they will be pontificating on Twitter even more, then please settle. Zero interest in knowing what is going on inside their heads.

[MAYHAWK]

There are so many good shows on Acorn and Britbox along with those on other streaming services I have never seen that this will have no impact on my viewing. Let this bite all parties in their collective a$$es.

[Scientist Investor]

The quality of most "entertainment" these days is abysmal. AI would undoubtedly do as good of a job as the "creatives", probably better. Good Riddance.

[tboucher1]

@Scientist Investor

Writers, actors are no longer needed.

[investor1374]

@Scientist Investor I agree. Do away with all live action programming and produce only animation using AI and CGI. It would be a massive improvement. I also prefer talking robots over human newscasters.

[AJ styles]

Glad the strike is happening does not effect me I'm on free TV apps all the movies and TV for FREE😎☝️👍 Hollywood is to woke anyway wow you mean I can't see the latest season of keeping up with the Kardashians?🤣🤣🤣 😎 The free steaming apps are taking out Hollywood and the 1% of the video game industry as for AI taking over Hollywood I say im 😎with it let Hollywood be game over it is what it is 💯😎

[nerd_rage]

@AJ styles YouTube cat videos are enough for me. Gonna rewatch the Emmy-winning Cat Hits Guy in Balls for the 1000 time.

[investor1374]

@nerd_rage Videos of cats at the vet's office are exceptionally addictive to watch.

[NewToThis2015]

I'm over this already.

[wordsmith1960]

The US movie and television productions are low quality entertainment.
Compare the dramas that are produced by the BBC and you'll see how much better US entertainment could be. The UK writers and actors are not paid the high salaries that are common in the US. Still they produce much better content.

[Interventizio]

@wordsmith1960 "Compare the dramas that are produced by the BBC and you'll see how much better US entertainment could be."
Man was that an awful example.

[wordsmith1960]

@Interventizio Bloodlands, Annika, Line of Duty, Bodyguard and many others.
Have I got News for You and Michael MacIntyre's Big Show are great fun.
Question time and BBC's Hard Talk are informative and provide a better understanding of many topics than you can get from the US media.
If you don't care for the BBC there is ITV, Channel 4, Channel 5 and others.

[JohnL000]

" AI won't replace its members" Good luck with that.

[500MPH]

No big loss

[user 11202791]

better off without the leftist propaganda that Hollywood produces

[TheVerbalsensei]

Imaging still going to see a movie, watching a TV show, especially a so called "comedy" that so pre 2020.

[Ratwrangler]

If the new and improved contract contains a guarantee that the studios will not use AI to do any of the writing, will it also contain a guarantee that the writers won't use AI to augment or speed up their work? If not, is that fair for the studios to get what the writers claim to be substandard work simply because the writers are using AI, rather than writing their own scripts?

[Mojo Rising]

@Ratwrangler
A professional writer using AI it’s fine. It’s analogous to a building contractor using a new tool to help him build faster.

A Studio using AI to write scripts is analogous to replacing the contractor with a robot

[mike in montana]

@Mojo Rising distinction without a difference

[Mojo Rising]

@mike in montana …? You’re kidding, right?

[55933594]

The last time I watched a new movie was about 5 years ago before they started pushing their social politics into every film.

[blenkep]

@55933594 social politics are not pushed in every film.

[jsantmyer]

@blenkep Yes, in EVERY SINGLE ONE of the films. He is correct.

[blenkep]

@jsantmyer how do you know, have you watched every single film? lol

[Moleman007]

So no more reboots, sequels, and superhero movies?

[Zionsville]

Hopefully this will be an indefinite strike and Hollywood will collapse. They ('actors') should show the world how macho they are, since the world, the rational one, sees them as ghastly overpaid, infinitely arrogant axxholes who think that their screen appearance allows them to teach the peasants (the vast majority of the population) about their place in the world, which is the doghouse, plus obligatory obedience.