It seems that Warner Bros. Discovery (WBD) may have gravely miscalculated when deciding to play hardball with writers and actors. This could be a major lesson in the importance of fairly compensating creative talent.
Backtracking to earlier this week, the entertainment behemoth made an eyebrow-raising announcement: its anticipated earnings for 2023 are forecasted to be much lower than what they’d hoped for. The reason? The unyielding strikes by the Writers Guild of America (WGA) and the Screen Actors Guild (SAG-AFTRA).
Before this bombshell, WBD executives hinted that the strikes might affect their content production and, consequently, profits. The company was optimistic, projecting earnings somewhere in the ballpark of $11.0 to $11.5 billion. However, recent revelations indicate they might be raking in only between $10.5 billion to $11.0 billion. That’s a staggering hit of $300 to $500 million!
But here’s the kicker – the demands of WGA would have cost Warner Bros. only around $47 million. That’s merely 10% of the revenue they’re now losing due to the persistent strike. It begs the question: Was it really worth it to push back so aggressively against the unions?
It’s not just about residuals, though they play a significant part. In this rapidly changing digital age, payments for rebroadcasts or streaming placements are diminishing, especially with the shift from traditional TV to digital platforms. But it doesn’t stop there. Both unions are increasingly wary of the encroaching use of artificial intelligence by studios.
Solidarity seems to be the word on the street. A considerable number of Americans, particularly the youth, are rallying behind the writers and actors. A recent poll indicated a whopping 38% of Americans siding with the unions, as opposed to a meager 7% in favor of the studios.
Moreover, with the changing winds of the current era, younger folks are giving two thumbs up to labor unions and strikes. A staggering 90% of individuals under 30 are championing the strikes echoing across the nation, highlighting a broader trend of younger generations seeking collective action and respect in professional spaces.
As SAG-AFTRA succinctly put it on social media, “The fight for a fair contract continues, and we won’t stop until we get what’s rightfully ours.”
In the end, this isn’t just about Warner Bros. It’s about recognizing the value of creative talent and ensuring that their contributions are rightfully compensated. As the digital age continues to evolve, it’s crucial for giant corporations to understand that pinching pennies now might end up costing them a fortune in the future.
