Hollywood braces for writers’ strike over pay deal

And if it was the soap opera of the summer in the United States? In the absence of an agreement on the increase in their remuneration, thousands of American television and cinema screenwriters are preparing for a strike.

The main studios and platforms, including Disney and Netflix, are in talks with the powerful writers’ union, Writers Guild of America (WGA), which threatens if no agreement is reached to order a strike after midnight (7 a.m. GMT Tuesday).

This would result in the immediate hiatus of hit shows, such as late-night shows, and significantly delay TV series and movies slated for release this year.

100 days of strike in 2007

The last major social movement in Hollywood dates back to the scriptwriters’ strike which paralyzed the American audiovisual industry in 2007-2008. A 100-day conflict that had cost the sector two billion dollars.

Screenwriters are demanding higher pay and a bigger share of streaming profits as studios say they need to cut costs due to economic pressures.

“Everyone feels like there’s going to be a strike,” said a Los Angeles-based TV screenwriter who did not want to be named. At stake is “an agreement that will determine how we are compensated” for streaming, both today and in the future, he added.

The screenwriters say they are struggling to make a living from their craft, with salaries stagnating or even falling due to inflation, while their employers are making profits and increasing the salaries of their executives.

They believe that they have never been so numerous to work at the minimum wage set by the unions, while the television networks hire fewer people to write increasingly short series.

In the background, streaming

One of the main disagreements is over how screenwriters are paid for streaming series, which on platforms like Netflix often remain visible for years after being written.

For decades, screenwriters have collected “residual rights” for the reuse of their works, for example in television reruns or DVD sales. It is either a percentage of the revenue earned by the studios for the film or show, or a fixed sum paid for each rerun of an episode.

With streaming, authors receive a fixed amount each year, even in the event of worldwide successes of their work such as the “Bridgerton” or “Stranger Things” series, seen by hundreds of millions of viewers worldwide.

Netflix and others

The WGA is calling for the revaluation of these amounts, which are today “far too low in view of the massive international reuse” of these programs. She also wants to discuss the future impact of artificial intelligence on the screenwriting profession.

The studios, represented by the Alliance of Film and Television Producers (AMPTP), point out that the “residual rights” paid to screenwriters reached a record level of $494 million in 2021, compared to $333 million ten years earlier. early, thanks in large part to the explosion in screenwriting jobs linked to the rise in demand for streaming.

Having been spendthrift in recent years, when competing broadcasters have sought to boost subscriber numbers at all costs, the bosses say they are now under heavy pressure from investors to cut spending and make profits.

And they deny pretexting economic difficulties to strengthen their position in negotiations with screenwriters. “Do you think Disney would lay off 7,000 people for fun? said a source close to the AMPTP. According to her, “there is only one platform that is profitable at the moment, and that is Netflix”. The film industry “is also a very competitive sector”.

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