Warner Bros. Discovery is feeling the consequences of the ongoing writers and actors strike, with significant financial losses predicted for 2023. Executives from the company have emphasized their desire to resolve the strikes and resume normal operations, as reported by Deadline.
The impact of the strike has led to a near-total shutdown from an operational and financial perspective, according to Gunnar Wiedenfels, CFO of Warner Bros. Discovery. He stated that there is currently very little content production taking place within the company.
This predicament is not unique to Warner Bros. Discovery, as many other studios are also experiencing the strain caused by the ongoing disputes between The Writers Guild of America and SAG-AFTRA unions and the Alliance of Motion Picture and Television Producers (AMPTP). The fate of the 2023-24 broadcast season hangs in the balance, with numerous TV shows and movie projects affected by the looming October 1 deadline to reach a resolution.
Wiedenfels expressed his disappointment with the situation and stressed the importance of finding a solution that ensures everyone feels respected and fairly rewarded.
In the meantime, networks are scrambling to fill programming gaps with unscripted content. ABC, for instance, has scheduled primetime slots for various game shows like Celebrity Jeopardy!, Celebrity Wheel of Fortune, Shark Tank, AFV, The Golden Bachelor, and The Bachelor in Paradise. FOX, on the other hand, is relying on reality TV shows, animated content, and sports events to maintain their programming lineup. Despite the potential for a drastically different TV schedule, a Gallup poll indicates that a majority of Americans support the striking writers and actors.
The strike’s impact goes beyond empty primetime slots. The motion picture and sound recording industries have suffered a loss of 17,000 jobs as a result of strike activities, according to the U.S. Bureau of Labor Statistics.
While Warner Bros. Discovery managed to save $100 million during the strike, the lack of new content means studios are losing out on future revenue streams. The demands of the striking Hollywood writers and actors include higher pay and job security. The shift in viewer habits towards streaming services has negatively affected writers’ pay rates, with streamed shows having fewer episodes and longer breaks between seasons. This results in smaller paychecks and fewer residuals for writers and actors.
SAG-AFTRA actors have joined the strike in solidarity with the writers and also have their own set of demands, including higher pay, increased contributions to pension and healthcare funds, recalculated residuals based on streaming service revenue, and changes to the self-taping audition process. They also seek protection against the use of artificial intelligence in the industry.
As the writers and actors prepare for a prolonged strike, it is likely that we will witness further job and financial losses alongside isolated successes such as Barbie and Oppenheimer.
-Kayla Wassell contributed to this story.
