November 1, 2024

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As the writers’ strike continues, the WGA is open to trades without the AMPTP

The Writers Guild of America said Friday it is open to deals with individual studios that want to get rid of the group that has been negotiating on behalf of the major legacy studios, Netflix and other streaming companies.

The Hollywood Writers Guild also publicly criticized studios and streaming services, which the Alliance of Motion Picture and Television Producers represents in labor talks, for allowing their internal disputes to stand in the way of a deal. The screenwriters’ attempt to separate the studios and banners marked a major tactical escalation as the strike, now 130 days old, continues with little sign of a breakthrough.

Without naming names, union officials said that executives at major studios indicated that their demands were reasonable and that an agreement must be reached. In a statement several hours later, AMPTP rejected the WGA’s claims.

The WGA’s message came in a memo from the Writers Guild’s negotiating committee to union members.

“We have made clear that we will negotiate with one or more major studios, outside the boundaries of the AMPTP, to conclude a new WGA deal,” the negotiating committee wrote. “There’s no requirement that companies negotiate through AMPTP. So, if economically destabilizing their companies isn’t enough to push a studio or two or three to either assert their self-interest within AMPTP, or break away from the broken AMPTP model, maybe Wall Street will finally do it.” “

Economic difficulties worsen as the strike continues

The last comment was a reference to a recent financial filing from Warner Bros. Discovery reveals studio could lose $500 million this year as Hollywood strike continues.

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In response, AMPTP said: “AMPTP member companies are allied and negotiating together to reach a solution. Any suggestion to the contrary is false. Every AMPTP member company wants a fair deal for writers and actors and an end to strikes.”

Actors joined writers on picket lines in July — effectively shutting down Hollywood — and will have to negotiate a separate deal with AMPTP even once the writers’ strike is resolved.

In many ways, the WGA memo stated publicly what industry insiders have long been saying — that it doesn’t make sense to have competing companies with different imperatives negotiating together. For example, studios like Warner Bros., Paramount/CBS and Sony are concerned about saving their fall seasons and showing major films in theaters. Netflix, on the other hand, does not operate under any particular time restrictions and is believed to have plenty of material to keep viewers interested for months to come.

Meanwhile, for Amazon and Apple, live streaming represents only a small part of their overall business. (Amazon founder Jeff Bezos owns The Washington Post. Interim CEO Patty Stonecipher sits on Amazon’s board.)

Everyone is losing the streaming wars

AMPTP has worked fairly well for decades as it brings together studios that share the same model and similar interests. However, the rise of streamers has thrown a new, disruptive element into the mix.

“Companies within AMPTP that want to get a fair deal with writers must take control of the AMPTP process itself, or decide to make a deal separately. At that point, a strike resolution would be within reach,” the WGA memo said.

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The WGA’s move came two days after Warner Bros. About postponing some deals with top models like Mindy Kaling. The writers considered this move an attempt to divide them, which they said would not happen.

The Writers Guild is seeking a number of commitments from studios and streamers in current talks, including pay increases and guarantees about how many writers should be hired for each show, and how long they will work. They are also seeking safeguards regarding the use of artificial intelligence, which actors and writers fear will replace them over time.

The AMPTP accused the WGA of remaining “hunkered down” on the issue of show staffing, and said it had already achieved significant gains for members and “possessed the potential to move these negotiations forward”.

The writers said they want to keep TV and film writing a sustainable career for middle-class Hollywood, something they fear will become less likely in a chaotic media environment that has yet to settle into a stable form amid ongoing conflicts over streaming.

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