Thousands of film and television writers are to go on strike, throwing Hollywood into turmoil as the entertainment business grapples with seismic changes triggered by the global streaming TV boom.
The Writers Guild of America (WGA) called its first work stoppage in 15 years, starting on Tuesday, after failing to reach an agreement for higher pay from studios such as Walt Disney and Netflix. The last strike lasted 100 days and cost the California economy more than $2bn.
“The companies’ behaviour has created a gig economy inside a union workforce, and their immovable stance in this negotiation has betrayed a commitment to further devaluing the profession of writing,” the WGA said in a statement on its website.
The guild represents roughly 11,500 writers in New York, Los Angeles and elsewhere. Members were scheduled to start picketing outside Hollywood studios from Tuesday afternoon.
The Alliance of Motion Picture and Television Producers (AMPTP), which represents the studios, said late on Monday it had offered “generous increases in compensation” to writers but the two sides were unable to reach a deal.
Media companies are facing a tough economic backdrop. Conglomerates are under pressure from Wall Street to make their streaming services profitable after investing billions of dollars in programming to attract subscribers.
The rise of streaming has led to declining television ad revenue as traditional TV audiences shrink and advertisers go elsewhere. The threat of a recession in the world’s biggest economy also looms.
The last WGA strike, in 2007 and 2008, cost the California economy an estimated $2.1bn as productions shut down and out of work writers, actors and producers cut back spending.
Producers had been prepared to increase
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