Hollywood Studios Play Hardball, Holding Out on Negotiations Till Writers Hit Rock Bottom: A Calculated Move to Crush the WGA

Hollywood studios plan to delay negotiations with the Writers Guild of America (WGA) until the writers in the Writers Guild Strike face financial difficulties. The strike, which started on May 2, 2023, is a result of the WGA's inability to reach a satisfactory contract agreement with the Alliance of Motion Picture and Television Producers (AMPTP). Key issues in the strike include payments for streaming content residuals and the utilization of AI programs for scriptwriting.

According to Deadline, the studios intend to wait out the Writers Guild Strike and only resume negotiations in autumn after writers have experienced financial hardships. A reliable source close to the AMPTP revealed that studios may not initiate negotiations until late October. The aim is for writers to put pressure on the WGA to engage in further talks with the AMPTP due to the increasing number of writers facing financial challenges.

How The Writers Strike Has Impacted Hollywood So Far

Shows like Stranger Things, Andor, Cobra Kai, The Last of Us, Yellowjackets, Daredevil: Born Again, and The Penguin have been significantly impacted by the ongoing WGA writers strike. The strike has caused delays in the production of these popular series, affecting their progress in various stages. Additionally, renowned live shows such as Jimmy Kimmel Live!, The Tonight Show, and Saturday Night Live have also experienced postponements, as there are currently no available writers to create content for them.

Tactically, it may seem logical for the AMPTP to hold off on restarting negotiations until the writers reach a desperate state for financial assistance. However, this strategy is likely to strain the relationships between studios and writers. If the WGA's demands cannot be met due to this delay, it is probable that tensions will persist between the two parties even after the strike concludes. Furthermore, it remains uncertain whether the potential SAG-AFTRA actor's strike will alter the studios' decision to wait out the WGA's strike.

If Hollywood studios fail to engage in negotiations with striking writers in the near future, it is likely that the film and television industries will experience a prolonged halt. This situation could escalate to further disruption if SAG-AFTRA also decides to go on strike. In an attempt to prevent an actor's strike, Hollywood studios have requested the intervention of the federal government to mediate ongoing negotiations. However, it is crucial to note that the deadline for these negotiations is set for today, July 12, 2023, at 11:59 p.m. PST. Despite the studios' inclination to weather the Writers Guild Strike, the unfolding demands of SAG-AFTRA might influence their current strategies.