The Screen Actors Guild’s National Board is set to make a crucial decision on Thursday morning. They will be voting on whether or not to go on strike, a move that could potentially result in a complete shutdown of Hollywood.
Negotiations Fall Through
The Screen Actors Guild, also known as SAG-AFTRA, is the largest labor union in the world that represents performers and broadcasters. After over four weeks of negotiations, the union has announced that they have not been able to reach a contract agreement with the Alliance of Motion Picture and Television Producers. This alliance includes major studios and streaming platforms such as Walt Disney (DIS), NBCUniversal, Netflix (NFLX), and Warner Bros Discovery (WBD).
A Closer Look at the Potential Strike
With a strike looming, the Union’s board will decide if actors should join writers on picket lines. The main concerns for actors are compensation cuts in the streaming era and the threat of artificial intelligence infringing upon their work and identities without consent or fair compensation.
Standing Up for Performers
Fran Drescher, the president of SAG-AFTRA and renowned actress from The Nanny, expressed her disappointment in a news release. She stated, “Despite our team’s unwavering dedication to advocating on your behalf, the AMPTP has refused to acknowledge the profound impact of industry and economic shifts on those who labor for the studios.”
A Difference in Perspectives
In response to the union’s decision, the Alliance of Motion Picture and Television Producers expressed deep disappointment. They emphasized that SAG-AFTRA was the one choosing to walk away from negotiations and asserted that this choice would further exacerbate financial hardships for many individuals who rely on the industry for their livelihoods.
It remains to be seen what the outcome of the vote will be and how it will potentially reshape the landscape of Hollywood.
Title: Disney CEO Calls Writers’ Strike “Disturbing”
In a recent interview with CNBC, Disney Chief Executive Bob Iger expressed his concern about the ongoing writers’ strike, describing it as “disturbing.” He acknowledged that the expectations of the writers may not be realistic and emphasized that their actions are contributing to the existing challenges faced by the entertainment industry.
The strike, which began in May, has already caused disruptions in the production of late-night and live-action television programs. If actors were to join the strike, studios would face even more pressure to reach a resolution with the unions. This would result in further shutdowns of TV show productions and award ceremonies. The impact of such a move could pose challenges for streaming and television stocks, as their shows would be put on hold.
As a result of these uncertainties, Warner Bros. saw a decline of 3.6% in its stock price, reaching $12.71 on Thursday. Similarly, Paramount Global (PARA) experienced a 0.4% decrease in its shares, down to $16.48.
However, according to Benchmark analyst Matthew Harrigan, Comcast (CMCSA), the parent company of NBCUniversal and Peacock, is better positioned to withstand the effects of the strike. Harrigan highlights that the movie business already has a significant number of releases in the pipeline, while NBCUniversal’s reality show programming remains unaffected by the strike. Consequently, Harrigan rates Comcast as a Buy with a $49 price target.