Facing the Hollywood Strike Head-On (Part I)

Note from the author: As the situation evolves, the information within this article may differ from the current situation. Thank you for understanding.

Everything in the world has changed thanks to the introduction of the internet. More things are moving online. To consumers, buying something from the Internet store seems more convenient than driving to the physical shop. In response to the growing demand for digital services, many companies have had to change their business models, even leading to the transformation of an industry. However, although it seems like a good thing, some members of a particular industry are unhappy about it; The entertainment industry. And in this two-part series, we’re talking about what these people are dissatisfied with, what they’re doing to protest, and the effects it may have on the entertainment industry.

I’m confident you have a favourite TV show, movie, or film franchise. But behind that one film, people are working to bring that masterpiece to your TV or theatres. Even though we only hear about the studios like Marvel and Disney, there are other components that the industry can’t function without. Those other components are the actors, the screenwriters, etc. Today, we’re mostly talking about three names. The AMPTP, or the Alliance of Motion Picture and Television Producers, represents big studios like Netflix, Disney, Paramount and Warner Bros. Discovery, NBC Universal, etc. Sag-Aftra, the Screen Actors Guild–American Federation of Television & Radio Artists, representing actors. And finally, the WGA, the Writers Guild of America, represents screenwriters.

What’s happening right now in the entertainment industry is that the screenwriters’ and actors’ unions have decided to issue a strike against the AMPTP. The last time the two organizations walked off the job together was back in 1960. Separately, Sag-Aftra hadn’t struck since 1980, and the WGA hadn’t struck beginning in 1988. The current strike has shut Hollywood down, as without the screenwriters or the actors, how would new movies get made? So it is also logical to believe that they must have some good reason to do it, as in previous examples of these strikes, it didn’t turn out well for the industry; Studios lost a few billion dollars, while viewers were disappointed due to postponed films. But I should admit, previous strikes have proved quite effective in achieving the intended goals.

The strike took place after failed negotiations between the AMPTP and the unions. Not many know this fact, but there are minimum contract negotiations per three years between the studios and unions. These contract agreements usually include minimum wage agreements, among other industry standards. However, this year, the two sides didn’t reach an agreement, and the screenwriters union decided to strike, followed by the actors union. This year’s negotiations revolved around two topics: Online streaming and new powerful artificial intelligence (AI) tools. Both significantly affect the two parties. Let’s explore these topics and why the unions are worried about them.

Let’s start with the ever-popular streaming services. Previously, for screenwriters writing the script for a studio, you would earn a check from the initial work, which came per the season or episode. Then, every time the show got rerun, every screenwriter who collaborated on the film would receive a percentage of the studios’ revenue, known as a residual. Screenwriters could earn a living and not worry about finding multiple jobs to support themselves. The residual system also worked similarly for actors. It is a win-win situation for everyone, a heavenly balance that benefits the entire industry.

And that begs the question: What went wrong with streaming? The short answer is everything. But if you want to know the long answer, please wait until next week. In the second part of this series, we’re explaining how everything went wrong with streaming and why the WGA and Sag-Aftra are worried about artificial intelligence. So remember to subscribe and share this article, so you and others will not miss out on Part II. That’s the end of this production from the New News Newsminute. Thank you for reading and your support.