12 July 2023, Mumbai: The Alliance of Motion Picture and Television Producers (AMPTP) is planning to hold firm this fall and delay further negotiations with the Writers Guild of America (WGA) until late October, as the writers’ strike enters its 71st day and the actors’ union considers its own labor action. Industry sources confirm this strategy, which has been in the works for months, recognizing the significant impact this labor dispute will have on Hollywood.
Major Studios Determined to Break the Writers Guild
Major studios such as Warner Bros Discovery, Apple, Netflix, Amazon, Disney, and Paramount are determined to “break the WGA,” capitalizing on positive feedback from Wall Street since the strike began on May 2. Their belief is that by October, most writers will be financially strained after five months on the picket lines with no work.
Endgame: Studios Aim to Financially Strain Writers to Force Negotiations
The studios’ and AMPTP’s endgame is to prolong the strike until union members start facing the risk of losing their homes and apartments. While this approach may seem cold-hearted, it is viewed as a necessary evil to exert pressure and force the WGA back to the negotiating table.
Financially Burdened Writers Expected to Demand Talks Restart
The studios and streamers anticipate that financially burdened writers will turn to the WGA leadership, demanding a restart of talks before the holiday season. In this scenario, the studios and streamers believe they will be in a position to dictate most of the terms of any potential deal.
Severe Strategy Stems from WGA’s Successful Battle with Agencies
This severe strategy stems from the WGA’s successful battle in 2021 against agencies over the practice of packaging. The guild’s ability to dismantle this lucrative practice by picking off one agency after another, until even holdout WME backed down, served as a warning sign to studios and streaming platforms.
Protecting the Bottom Line: AMPTP’s Conviction in Not Yielding to Writers’ Demands
Convinced that yielding to the writers’ demands will set a precedent for future contract cycles with other unions, such as IATSE and the Teamsters, ending in strikes, the AMPTP is focused on protecting their bottom line.
No Discussions Despite Public Offers, Studios Save Money on Halted Productions
Despite public offers from the WGA to resume talks, there have been no discussions between the AMPTP and the guild since the strike began. Studio bosses have expressed praise for the writers but have not made public proposals to bring them back to work. Meanwhile, networks are adjusting schedules to unscripted shows, and streamers are acquiring foreign content, allowing studios and streamers to save money on halted productions.
Negotiations with Directors Guild Succeed, Actors Next on the Table
In a parallel development, negotiations with the Directors Guild concluded successfully in late May, with ratification taking place last month. Even if the 160,000-member SAG-AFTRA joins the WGA on the picket lines, the studios hope to bring the actors back to the negotiating table in the coming weeks.
New SAG-AFTRA Deal Could Further Weaken the Writers Guild
While a new SAG-AFTRA deal would not result in the resumption of production, it could allow actors to promote projects already slated for release. The studios see this as a move that could further weaken the WGA as the year progresses.
As the standoff between the AMPTP and the WGA continues, both sides are prepared for a protracted battle. The studios’ plan to prolong the strike and exert financial pressure on the writers reflects the high stakes involved in this labor cycle, which has the potential to reshape the industry’s dynamics. As of now, there has been no response from either the AMPTP or the WGA regarding requests for comment.