The Writers Guild of America (WGA) went on strike on Tuesday, with more than 11,000 members halting the production of many popular television shows. This marks the first strike since 2007, which lasted for 100 days and cost the industry an estimated $2 billion in economic damage. The strike comes as negotiations between the writers' union and the Alliance of Motion Pictures and Television Producers (AMPTP) failed to reach an agreement.
Negotiations between WGA and AMPTP
The primary sticking points in negotiations were the Guild proposals for "mandatory staffing" and "duration of employment." The studios were willing to improve their offer, but were not willing to meet some of the union's demands. This could be the start of a long strike, as the distance between the two sides suggests.
Impact on Viewers and the Industry
Viewers could see an impact with late-night shows, daytime soap operas, and shows such as "Saturday Night Live," which could have early ends to their seasons. The strike could soon idle thousands of other workers on the sets of shows and movies. The strike could have widespread implications for the industry and the economies of Southern California and some other locations, such as New York City.
Streaming Services and Residuals
The rise of streaming services changed the way audiences consume both television shows and movies, and studios adjusted their business models in an attempt to respond. Writers have traditionally gotten residuals when a show they wrote is sold to run again in syndication or on basic cable. But they're unlikely to get meaningful residuals when they create original content for streaming services as contracts stand today. The Guild was fighting for some kind of ongoing compensation from streaming services in these negotiations.
Impact on Production Schedules
{{/usCountry}}The rise of streaming services changed the way audiences consume both television shows and movies, and studios adjusted their business models in an attempt to respond. Writers have traditionally gotten residuals when a show they wrote is sold to run again in syndication or on basic cable. But they're unlikely to get meaningful residuals when they create original content for streaming services as contracts stand today. The Guild was fighting for some kind of ongoing compensation from streaming services in these negotiations.
Impact on Production Schedules
{{/usCountry}}With streaming services poised to become the future of television entertainment, the hunger for content means that it might not take as long for the strike to start to impact production schedules. Typically, broadcast shows due to air with the start of the fall season would be on hiatus for the next couple of months. But productions take place on a more year-round basis today than in the past.
As negotiations continue between the WGA and AMPTP, the strike could have a significant impact on the television and film industry. With the rise of streaming services and the changing landscape of entertainment, this could be a defining moment for the industry and its future.