Industry Insider: The Writers’ Strike, A Defining Moment In Hollywood’s History: Part 2
Gilbert Flores
The Writers’ Strike currently taking Hollywood by storm is a defining event in the evolution of the media and entertainment industry. As streaming progressively dominates over network television, the way in which episodic series are written and produced is changing with it. However, compensation has stagnated – which is why on May 1st, 2023, the WGA (Writers’ Guild of America) announced a strike for all its members. As per striking rules, any type of professional engagement (as per writing services) with the major studios is prohibited. Presented here is the second article of a three-part series compiled by A Hot Set to describe and analyze the strike – you can read the first article here.
Opposite the WGA at the negotiating table is the AMPTP (Association of Motion Picture and Television Producers), a trade association that represents the major production companies and studios in Hollywood in a joint front for a total of over 350 producers. The resulting collective bargaining power is impressive, as the AMPTP is the entity that negotiates contracts with virtually every union and guild in the film industry – SAG-AFTRA, the DGA (Directors Guild of America), IATSE (International Alliance of Theatrical Stage Employees), and the WGA to name a few. Founded in 1924, the AMPTP is affiliated with the MPA (Motion Picture Association), the trade association representing the five major US film studio conglomerates (Walt Disney Studios, Universal Pictures, Paramount Pictures, Warner Bros. Entertainment, and Sony Pictures) as well as Netflix, the first streaming service to be part of the association.
The prolonged negotiations due to the Writers’ Strike have interrupted multiple ongoing productions: the new Marvel movie Thunderbolts halted filming, Abbott Elementary’s writers’ room closed, as well as The Lord of the Rings: The Rings of Power, Severance, and Stranger Things. Many professionals belonging to other unions have taken the picket line, causing a general hiatus in employment in the industry. Moreover, the strike is also heavily affecting California’s economy. As reported by an analysis from the Milken Institute, the 2007-2008 WGA Strike, which went on for 100 days, cost the State of California an estimated $2.1 billion - around $21 million per day. Based on this data, the current strike costs California $30 million daily. The length of the strike is difficult to predict, with a considerable component being the participation of the other unions in it. The contract with the DGA expired in June, and a new agreement has been reached, while SAG-AFTRA has extended negotiations until July 12, although they already voted for the approval of a potential strike. If the other unions were to join the WGA in the strike, their bargaining power would spike up, causing the strike to go on for longer, thus pressing the AMPTP to act as quickly as possible to confine the financial loss.
Mini rooms introduced a new financial interest for the big studios, as mini rooms allowed them to cut costs while maintaining the quantity of output. The previous MBA (Minimum Basic Agreement – the contract between AMPTP and WGA) only regulated compensation for greenlit shows; since mini rooms were considered part of development, studios were able to pay the screenwriters the minimum salary, with no guarantees for future employment and no residuals, which are a fundamental form of compensation in a project-based job such as that of a TV writer. On the other hand, mini rooms have their advantages: they are a cost-effective solution to gauge the potential success of a new series without fully committing. Mini-rooms posed a potential way in which the two parties could find common ground for the studios to hire writers full-time, thus guaranteeing an adequate salary and benefits, while still taking advantage of the mini-room format.
Mini rooms, as they are employed now, are detrimental to writers from more than a financial perspective. TV writers, unlike movie screenwriters, usually hold additional producing roles on top of their writing, meaning they need to be on set and in post-production to ensure that their shows follow the storylines correctly while making occasional edits. To gain the necessary experience to become showrunners, novice writers are involved on set and in the writers’ room learning about their new roles. Moreover, the practical division of labor necessary to keep the writing-producing line going smoothly requires more labor than what the writers currently hired in mini rooms are able to take on.
Lastly, the response by the AMPTP on the issue of artificial intelligence included the proposal of annual meetings to discuss the impact that advancements in technology may have on the writers’ work and compensation. However, artificial intelligence is developing exponentially, and its evolution will be much faster than a once-in-a-year discussion.
All the issues brought forward by the WGA lead to one solution: more transparency on the part of streamers regarding viewership and financial data. Right now, accurate and detailed data regarding the success of shows on streaming platforms are not available to showrunners and writers, who are left negotiating their end of the contract without the necessary information for the agreement to be truly fair.
