Hollywood is facing its first industry shutdown in over 63 years
On July 13, the union representing more than 150,000 film and television actors announced that it would go on strike at midnight, in solidarity with the screenwriters who suspended their activities in May. This triggered the first general walkout seen in the Hollywood industry in 63 years.
Why are the actors and writers on strike?
Wages are often the main cause of work interruptions, and that's happening here, too. But the rise of streaming platforms and the challenges posed by the pandemic have increased pressure on studios, many of which are struggling financially, as well as on actors and writers, who are seeking better pay and new protections in a work environment that is changing rapidly.
Both actors and writers are asking for increased residual payments (a type of royalty they receive for broadcasts) from streaming services. In general, the series that are broadcast on these platforms have much fewer episodes than traditional television series used to have. And before, the rule was that if a TV series was a hit, the actors and writers could count on long-term income through regular residual checks; streaming changed that system in a way that they say has hurt them. Both groups are also demanding important protections around the use of artificial intelligence to keep their jobs.
Fran Drescher, president of the Screen Actors Guild and the American Federation of Television and Radio Artists (SAG-AFTRA), noted that "the whole business model has changed" when announcing the strike Thursday. “This is a historic moment, the moment of truth,” she said. "At some point, you have to say, 'No, we're not going to put up with this anymore.'"
What is the position of the Hollywood studios?
The Alliance of Motion Picture and Television Producers (AMPTP), which represents the biggest studios and streaming platforms, said it offered "historic wage increases and residuals" as well as higher caps. to pensions and health benefits. They also said their offer includes audition protections, a "groundbreaking" proposal around artificial intelligence, and other benefits that address union concerns.
Likewise, the Hollywood studios stressed that it has not been easy for them to cope with all the turbulence in the industry. Audiences have been slow to return to movie theaters and viewers have switched from cable and pay TV to streaming entertainment, with many studios seeing their share prices collapse and margins shrink. of earnings. Some companies have resorted to measures such as layoffs, the cancellation of projects, or both.
What will happen to TV shows and movies?
Viewers will take time to tell the difference because most of the movies scheduled for release this year have already been filmed. But viewers are already seeing the effects of the strike, and if it continues, new seasons of several popular series could be postponed.
Late-night talk shows are already running reruns due to the writers' strike, and the vast majority of film and television productions are already canceled or on hiatus. Wildly popular shows like Yellowjackets, Separation, and Stranger Things suspended operations after the start of the writers' strike; It is not yet known if its next seasons will be postponed.
In June, Disney announced several changes to its theatrical release schedule due to the writers' strike.
No permits were issued for scripted television productions in Los Angeles County during the first two weeks of July, according to Film, an outlet that tracks industry activities. Most likely, the films and series that have already finished filming and are in post-production will be released as planned because the work that remains does not usually require the participation of writers or actors.
As of now, it is prohibited to participate in any production, be it film or television from any of these studios, with few exceptions. That means that in a few months - starting with the fall TV schedule - viewers will start to notice bigger changes in the series they watch.
