LOS ANGELES: Thousands of film and television writers were headed to picket lines on Tuesday after union negotiators called a strike, sending Hollywood into turmoil and disrupting TV production as the industry wrestles with the shift to streaming. The Writers Guild of America (WGA) said its leadership unanimously supported its first work stoppage in 15 years after failing to reach an agreement for higher pay from studios such as Walt Disney and Netflix. “The companies’ behaviour has created a gig economy inside a union workforce,” said the WGA, which represents roughly 11,500 writers.
The strike hits Hollywood studios at a difficult time. Conglomerates are under pressure from Wall Street to make their streaming services profitable after pumping billions of dollars into programming to attract subscribers. The rise of streaming has led to declining television ad revenue, as traditional TV audiences shrink and advertisers go elsewhere. The threat of a recession in the world’s biggest economy also looms. The last strike in 2007 and 2008 lasted 100 days. The action cost the California economy an estimated $2.1 billion as productions shut down and out-of-work writers, actors and producers cut back spending.
The strike hits Hollywood studios at a difficult time. Conglomerates are under pressure from Wall Street to make their streaming services profitable after pumping billions of dollars into programming to attract subscribers. The rise of streaming has led to declining television ad revenue, as traditional TV audiences shrink and advertisers go elsewhere. The threat of a recession in the world’s biggest economy also looms. The last strike in 2007 and 2008 lasted 100 days. The action cost the California economy an estimated $2.1 billion as productions shut down and out-of-work writers, actors and producers cut back spending.