California Losing US$ 30 Million a Day
Posted on 05/18/2023
A new Writer’s Guild letter to members outlines some of the costs involved in the strike in the entertainment industry occurring since May 1. Studio executives are digging in, nevertheless, the WGA is holding firm. What is certain is that the work stoppage is grinding some shows and many third-party vendors to a sudden halt. The state of California is losing US$ 30 million a day due to the disruption in the economy. The WGA has offered a breakdown of further financial distress.
The WGA says it is asking for a drop in the bucket, and estimates the costs to Hollywood of agreeing to their demands would be “collectively US$ 429 million per year, approximately US$ 343 million of which is attributable to eight of our largest employers. For perspective, tens of billions are spent on the programming writers create, $19 billion alone on original content for streaming services this year. And the cost of these proposed improvements is modest compared to industry revenues and profits, but are essential to writers whose pay and working conditions have eroded over the past decade.”
The WGA says agreeing to their terms would cost Disney US$ 75 million a year, out of company revenues of US$ 82.7 billion. Netflix would pay US$ 68 million more, out of US$ 31.6 billion. Warner Brothers would pay US$ 47 million, out of US$ 43.1 billion.
The WGA claims to hold the trump card: “These companies have made billions in profit off writers’ work, and they tell their investors every quarter about the importance of scripted content. Yet they are risking significant continued disruption in the coming weeks and months that would far outweigh the costs of settling.”
SWFI reporting reveals that picketing groups are stationed at various locations throughout the entertainment industry. WGA members and non-WGA members are involved.