Hollywood strike looms amid tense talks between writers and studios

Contract talks between Hollywood screenwriters and movie studios headed down to the wire on Monday, leaving the threat of the first strike in more than 15 years hanging over the industry.

The 11,500-member Writers Guild of America authorised a strike in mid-April, arguing that studios must agree to change pay and workplace practices that have taken root in the streaming era. If the two sides fail to reach a deal by midnight in Los Angeles, a strike could begin as soon as Tuesday — though talks could continue past the deadline if there is progress.

Simon Pulman, a partner at the media and entertainment group at law firm Pryor Cashman, said dealmaking activity had been “frantic” as agents and lawyers try to wrap up business before activity in Hollywood grinds to a halt.

“It seems more than likely that there will be a strike,” Pulman said. The question many in Hollywood are asking, he added, was how long it would last. The last time writers went on strike was in 2007, bringing Hollywood to a standstill for 100 days and costing the California economy an estimated $2bn.

The impact of a strike would fall first on live television programming, including late-night chat shows, followed by streaming programming. Theatrical films, which have longer lead times, would be the last to be affected.

Writers argue that it is more difficult to make a living in the streaming era since they earn far less than they did in the traditional TV business. In the traditional US network TV model, writers produced about 22 scripts per season and were eligible to earn royalties on their shows. However, streaming series are much shorter, often eight to 10 episodes, and opportunities to earn royalties are scarce.

Studios have also reduced the number of writers on shows in some cases. The writers union is taking aim at the “mini-room” — small groups that quickly produce scripts for prospective shows.

Ted Sarandos, co-chief executive of Netflix, told investors last month that the company was working “work really hard to make sure we could find a fair and equitable deal so we can avoid” a strike.

But he added that the company’s reservoir of international programming would insulate it from some of the impact. “If there is [a strike], we have a large base of upcoming shows and films from around the world [so] that we could probably serve our members better than most . . . we do have a pretty robust slate of releases to take us into a long time.”