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Controversial Strategy of Hollywood Studios


Controversial Strategy of Hollywood Studios

After the writers’ strike reached its 71st day and the actors’ union edged closer to a potential labor action, the Alliance of Motion Picture and Television Producers (AMPTP) has unveiled its decision to delay further talks with the Writers Guild of America (WGA) until autumn. Sources from the industry have confirmed that studios and streaming platforms are firmly set on depleting the guild’s finances, considering this labor cycle as a crucial juncture for Hollywood.

Insiders have stated that the plan, scheduled for late October, aims to let the strike persist until most writers are at the brink of financial collapse after five months of picketing and unemployment. Studios and the AMPTP believe that this strategy will pressurize union members to implore WGA leadership for a restart of negotiations, potentially giving the studios the upper hand in setting terms.

This drastic measure is a reaction to the WGA’s victorious conflict against agencies in 2021, resulting in the dismantling of packaging practices. The guild’s relentless efforts led to the agencies conceding one after another.

Nevertheless, a spokesperson for the AMPTP has highlighted that unofficial sources do not reflect the official position of the organization or its member companies, as they are committed to achieving a consensus and resuming work.

Since the commencement of the strike in early May, there have been no discussions between the AMPTP and the WGA, despite public offers from the guild for negotiations.

Conversely, negotiations with the Directors Guild achieved success leading to a ratified agreement last month. The studios aim to leverage this accomplishment to potentially draw actors back to the negotiation table, even if SAG-AFTRA joins the WGA in picketing.

Regardless of a potential strike from SAG-AFTRA, the studios have no plans to recommence talks with the Writers Guild for several more months, preferring to let the strike ensue indefinitely. This tactic seeks to gradually erode the writers’ determination until they must concede to terms to safeguard their financial standing.

Veterans in the industry, familiar with the viewpoint of studio CEOs, foresee a prolonged strike, expecting the studios to allow it to prolong until the WGA is compelled to surrender.

As the strike endures, the resilience of the writers and the determination of the studios will face trials, ultimately determining the verdict of this high-stakes confrontation for the future of the entertainment sector.

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