US Writers’ Strike: Risk for TV Series and Late-Night Shows

The writers are demanding a pay increase and a larger share of the profits generated by streaming, while the studios argue that they need to cut expenses due to economic constraints. The writers believe that they have never been so many working for the minimum wage established by the unions, as television networks hire fewer people to write increasingly shorter series.

Disagreement on Writers’ Compensation for Streaming Series

One of the main points of disagreement concerns the method of calculating writers’ compensation for series streamed on platforms such as Netflix, which often remain accessible for years after being written. With streaming, writers receive a fixed amount each year, even if their work achieves global success. The WGA is calling for an increase in these amounts, which are considered “far too low given the massive international exploitation” of these programs.

The studios, represented by the Alliance of Motion Picture and Television Producers (AMPTP), point out that the “residual rights” paid to writers reached a record level of $494 million in 2021, up from $333 million ten years earlier, largely due to the increase in writers’ jobs related to the growth in streaming demand. They deny using economic difficulties to strengthen their position in negotiations with the writers.

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“Do you think Disney would lay off 7,000 people for fun?”, said a source close to the AMPTP.