Whether you are online and invested in the entertainment industry or only occasionally tune in to new movies and shows, you’ve likely heard that Hollywood is on strike. But what exactly does this entail? The implications and details can be hard to grasp from an outside perspective. Despite our status as mere consumers, show business’s latest disturbance directly impacts all of us — and it’s not the first time. From the conditions that spawned the uproar to its ramifications, I’m here to help explain what’s going on.
The Writers Guild of America is comprised of two branches, the East and West, representing nearly 12,000 creatives responsible for scripting the films, shows and even podcasts we eat up daily. In efforts to negotiate a new contract with leading studios, the WGA is pleading for a more equitable compensation structure. Claiming the survival of their profession is on the line, the WGA officially went on strike on May 2, aspiring to fix a broken system.
Hollywood is no stranger to these walkouts; tensions between writers and studios have persisted for decades. In 2007, an 100-day strike halted the production of many beloved scripted shows. The content during and immediately following the 3-month period dipped significantly in quality as rushed, untuned scripts and re-runs swallowed airtime.
Entering its fourth month, the 2023 writers’ strike has already overcome the duration of its predecessor. Writers have entirely shut down operations; only completed productions are still releasing to the public. Everything else, including late-night TV, will postpone scripting until the strike concludes. As it prolongs, a dip in new shows will start to occur — reality series and shows produced internationally will take up that space. Because films take extensive time to create, their distribution dip won’t be as noticeable, barring an extremely lengthy strike.
On July 14, the Screen Actors Guild — comprised of more than 160,000 members — joined writers demanding liveable wages. SAG leader Fran Drescher kicked off the strike with a spirited speech, shaming studios for prioritizing executives and leaving little in return for their dedicated performers.
But actors are rich, right? Why would megastars like Tom Cruise or Scarlett Johannson need a boosted paycheck? In this business, A-list celebrities are the outlier. While some lesser-known actors make decent money, many struggle to make ends meet.
For writers and actors alike, the primary reason for these complaints concerns the streaming landscape. Over the past decade, streaming services have completely altered how audiences consume film and television. Netflix, Hulu, Max and other platforms not only produce their own content but house a vast media catalog containing content from the past. The issue revolves around residuals: royalties received from reruns sold to networks. Nowadays, writers and actors are provided their entire paycheck in one batch — a lump sum with no residuals. Because streaming allows increased access to film and television any time, any day, the WGA and SAG are urging studios to actually pay them for their work.
Another crucial worry that spawned the strikes is the threat of artificial intelligence. The WGA and SAG feel studios must discourage AI-generated imagery in film and television. Because AI is rapidly growing more indistinguishable from reality, many fear a damaging prospect: studios might opt for machines to take their jobs.
With nearly all of Hollywood on hold, major studios are under immense pressure to get the ship sailing again — and the money flowing. Entirely independent studios, however, are an exception; if they abide by SAG’s interim agreement, they can continue producing films. One of the most notorious indie studios, A24, responsible for Oscar darlings Everything Everywhere All at Once and Moonlight, has been given the green light. Depending on the length of the strikes, we could see more top writers and actors pursue independent production.
Currently, writers and actors are united, picketing nationwide, while studio executives paint their demands as unrealistic. The content rotation will soon start to die down, and audiences will have to endure a period of low-quality entertainment or resort to old favorites. With Hollywood still at odds nearing the end of the summer, there’s no telling when a settlement will be made.
