Warner Bros. Discovery is actively seeking to resolve the ongoing strikes by Hollywood writers and actors, which have brought TV and film productions to a halt.
Warner Bros reveal revenue losses linked to writers’ strike
As reported by Variety, CFO Gunnar Wiedenfels expressed the company’s commitment to finding a swift solution during the Bank of America Media, Communications, and Entertainment Conference.
Wiedenfels acknowledged the challenging situation, stating:
“It’s an unfortunate situation… We have to get back to work.”
The Writers Guild of America (WGA) estimates that accepting the union’s proposed contract terms would cost Warner Bros. Discovery an additional $45 million annually.
He emphasised the importance of reaching an agreement where everyone involved feels respected and fairly rewarded.
From an operational standpoint, the strikes have severely impacted Warner Bros. Discovery’s production activities. Wiedenfels noted that there is currently very little content production happening.
Last week, Warner Bros. Discovery revealed that it anticipates a significant financial impact from the dual strikes, estimating losses of $300 million to $500 million for full-year 2023 earnings.
This led to a downward revision of the company’s expected adjusted earnings for the year, now projected to be between $10.5 billion and $11 billion.
Here’s why SAG-AFTRA writers are on strike
The writers’ strike, led by the Writers Guild of America (WGA), commenced on 2 May 2023, with members of SAG-AFTRA (Screen Actors Guild‐American Federation of Television and Radio Artists) joining the picket lines on 14 July 2023.
This strike is notable for being the first time actors have initiated a labour dispute in the US since the 1980 actors’ strike and the first time both actors and writers have simultaneously walked out since 1960.
The 2023 SAG-AFTRA and WGA strikes represent one of the most significant disruptions to the American film and television industries since the COVID-19 pandemic’s impact in 2020.
The strikes are not only a response to issues related to the entertainment industry but also reflect changes driven by streaming, as well as the impact of new technologies such as AI and digital recreation.
In efforts to mediate an end to the strikes, both Los Angeles Mayor Karen Bass and California Governor Gavin Newsom have offered their assistance.
