Negotiators for Hollywood writers and film and television studios engaged in 11th-hour contract talks on Monday to try and avert a strike that would disrupt TV production across an industry grappling with seismic changes.
The Writers Guild of America could call a work stoppage as early as Tuesday if it cannot reach a deal with companies such as Walt Disney Co and Netflix Inc. A strike would be the first by the WGA in 15 years.
Writers say they have suffered financially during the streaming TV boom, in part due to shorter seasons and smaller residual payments. They are seeking pay increases and changes to industry practices that they say force them to work more for less money.
Half of TV series writers now work at minimum salary levels, compared with one-third in the 2013-14 season, according to Guild statistics. The median pay for scribes at the higher writer/producer level has fallen 4% over the last decade.
"The way that it's looking now is that there won't be a middle class in Hollywood," said Caroline Renard, a Guild liaison and writer who has worked on Disney Channel's "Secrets of Sulphur Springs" and other shows.
Artificial intelligence is another issue at the bargaining table. The WGA wants safeguards to prevent studios from using AI to generate new scripts from writers' previous work. Writers also want to ensure they are not asked to rewrite draft scripts created by AI.
The negotiations take place against a difficult economic backdrop for the industry. Entertainment conglomerates are under pressure from Wall Street to make their money-pit streaming services profitable, after investing billions of dollars in content to attract subscribers.
They also are contending with declining television ad revenue, as traditional TV audiences shrink and advertisers go elsewhere. The threat of a recession also looms.
The Alliance of Motion Picture and Television Producers (AMPTP), which represents Comcast Corp, Disney, Warner Bros Discovery, Netflix and hundreds of production companies, has said it is committed to reaching a fair agreement.
Reuters