The news: The potential for a Hollywood writers’ strike is heating up again as the Writers Guild of America (WGA) prepares to enter negotiations with the Alliance of Motion Picture and Television Producers (AMPTP) on March 20.
The conflict: The main benefit the WGA demands in its new contract is higher pay. The WGA argues that the pivot to streaming services has deprived writers of crucial income sources and decreased pay overall, while streaming services have netted record revenues and profits.
Streaming’s outlook: The possibility of a strike comes at a challenging time for streaming services, which are feeling pressure from investors to reverse shrinking revenues and subscriptions by cutting spending.
Our take: 2021’s canceled stage employee strike should give WGA members hope that a reasonable contract can be reached between streamers and writers, but platforms scared of shrinking revenues may play hardball, which could result in conflict.