What you need to know about a writers’ strike
Late-night and scripted programming will bear brunt if walkout begins in May
LOS ANGELES— Ready or not, Hollywood may be thrust into another writers’ strike in less than a week. A decade after the walkout that lasted 100 days, film and TV executives are once again bracing for a strike that could roil the industry. Who would go on strike? Writers for TV shows and movies will walk off the job if the Writers Guild of America calls a strike after their contract expires May 1. They include writers for major network series as well as shows on cable and streaming media like Netflix and Amazon. Even joke writers for latenight comedy shows would join the picket line. The WGA consists of nearly 13,000 members. How did we get here? Contract negotiations between writers and the studios began March 13, but the two sides have so far failed to reach an agreement on key issues relating to compensation and benefits. The talks broke off March 24, with each side accusing the other of walking away from the table first. The talks resumed Tuesday, giving the sides one week to reach a deal before the current contract expires. Does a strike vote mean a strike will happen? Not necessarily. A strike authorization vote is usually a negotiating tactic for unions to exert more leverage over employers. If the two sides fail to make progress in the days ahead, they could bring in a federal mediator, which could delay a strike past the May1deadline. But observers say the odds of a strike remain high because the parties remain far apart on key issues. What are they fighting about? Writers contend that their economic fortunes have declined in recent years as they face shorter seasons with fewer episodes. Once upon a time, a typical network show consist- ed of 22 to 24 episodes per season. Now that number has dropped to 15 or fewer; 10 or fewer for cable and streaming. Since writers are paid per episode, take-home pay is dropping.
To complicate matters, episodes are taking longer to shoot as TV shows become more cinematic. Writers’ pay is being amortized over longer periods of time, effectively lowering their per-week pay.
In the past, writers could count on residual payments from reruns and syndication to see them through tough financial periods. But those markets are shrinking and the residuals from streaming are far below those of traditional TV.
On the film side, the studios are making fewer movies per year, which means fewer opportunities for writers. And as the DVD market continues to decline, writers are seeing fewer home-video residuals.
Benefits are also a major source of discord. Writers are asking entertainment companies to increase their contributions to the guild’s health plan. What will be the effect of a strike? It all depends on how long a strike lasts. The most immediate effect would be felt in the late-night comedy shows, which rely on writers to come up with topical jokes about the day’s news.
Scripted TV production would bear the brunt of a work stoppage since most network shows are locked into a strict production schedule. While production for the fall TV season isn’t set to begin until this summer, cable and streaming companies are shooting series year-round.
Movie production will be affected less because there is more flexibility around release dates.
But experts say Hollywood blockbusters that are locked into summer 2018 or Christmas releases could feel the pinch.
The larger economic impact of a strike could be significant for both sides. The 2007-08 strike cost the industry about $2.1 billion (U.S.), according to the Milken Institute.
The Alliance for Motion Picture and Television Producers has said writers lost more than $287 million in compensation during the strike.