Writers Guild Association announces strike due to ‘streaming’ services

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Writers Guild Association announces strike due to 'streaming' services | Baaghi TV

Thousands of Hollywood writers dedicated to television and film will reportedly be going on strike on Tuesday citing concerns that the entertainment business is forced to deal with the repercussions of global streaming services. 

According to a The Business Standard (TBS) report, the Writers Guild of America (WGA) has announced it will be stopping its operations after it failed to reach an agreement for higher pay from studios such as Walt Disney Co DIS.N and Netflix Inc NFLX.O. The previous strike nearly fifteen years ago had cost a loss of over $2 billion to the California economy. 

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In a statement posted to their website, the WGA said: “The companies’ behavior has created a gig economy inside a union workforce, and their immovable stance in this negotiation has betrayed a commitment to further devaluing the profession of writing”. It is worth mentioning that Guild represents almost 11,500 writers in New York, Los Angeles, and surrounding areas who are expected to start protesting on Tuesday afternoon, outside of Hollywood studios. 

On the other hand, late Monday, AMPTP (Alliance of Motion Picture and Television Producers) a representative of the Hollywood Studios said that it had offered a “generous” compensation increase to the writers but the negotiations had fallen through. 

Since the rise in demand for streaming services, media companies are facing an unavoidable drop in economic interest with many focused on attracting subscribers with billions in investments. Likewise, there is a record decline in ad revenue on television as traditional audiences are shrinking. 

Writers Guild Association announces strike due to 'streaming' services | Baaghi TV

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Previously, the WGA went on strike in 2007 and 2008 and cost the state of California an estimated loss of $2 billion as productions came to a halt forcing out-of-work writers, producers, and actors to cut back spending. 

According to the AMPTP, while producers were prepared to increase offers of higher pay, they were “unwilling to do so because of the magnitude of other proposals still on the table that the Guild continues to insist upon”. According to them, the major sticking points were the proposal that would require companies to have staff “with a certain number of writers for a specified period of time, whether needed or not”.

On the other hand, countering the studios’ response to its demands, the WGA has said that its proposals “have been wholly insufficient, given the existential crisis writers are facing”. The Guild has added that these companies have “taken so much” from the writers that have “made them healthy”. 

Reportedly, the writers have taken the most significant financial brunt as streaming services boom across the globe, in part due to smaller seasons and residual payments. According to statistics shared by the WGA, almost half of the writers are now limited to working at a minimum salary level in comparison to one-third in 2013 to 2014.

Writers Guild Association announces strike due to 'streaming' services | Baaghi TV

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Moreover, the median pay for the higher level writer or producer has fallen approximately four percent in the last decade alone. Still, on the rise, Artificial Intelligence (AI) is another concern for the industry. The WGA reportedly hopes for safeguards to prevent studios from using AI technology to generate scripts replacing writers entirely. 

Likewise, the writers are concerned that they may be asked to rework scripts generated by AI. Until a resolution of conflict, programming is expected to be disrupted. Late-Night shows including Jimmy Kimmel Live and The Tonight Show with Jimmy Fallon are among many expected to stop production immediately.

Writers Guild Association announces strike due to 'streaming' services | Baaghi TV

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