The Hollywood industry, spanning from the process of script writing to production and PR, has now come to a complete halt.
Recently, the actors decided to go on strike. Led by Fran Drescher, the iconic sitcom nanny, the 160,000 members of SAG-AFTRA stopped working after failed negotiations with the studios. This strike aligns them with the Writers Guild of America, who have been on strike since May.
It has been over 60 years since our two major unions have gone on strike simultaneously. The writers’ pickets had already shut down about 80% of productions. Now, the actors’ strike rules prohibit them from shooting, doing voice-over work, attending red carpets, or promoting any Motion Picture Association projects. This proves to be a challenge, especially considering that the writers’ strike had already shut down the late-night talk shows that were vital for press exposure.
Just like the writers, actors are demanding better compensation for their residual pay, which is similar to royalty checks, as it has dwindled with the rise of streaming platforms. Moreover, actors are also seeking safeguards against the use of their voice and image by artificial intelligence.
Disney’s CEO, Bob Iger, dismissed these expectations as unrealistic and criticized the strikers, stating that it added more disruption to an already challenging business environment. Ironically, a studio executive revealed earlier that their strategy was to prolong negotiations until union members start facing financial difficulties, such as losing their homes and apartments. Eviction as a labor negotiation strategy is undeniably cruel.
The suffering faced by Hollywood’s CEOs does not primarily stem from labor disputes, industry disruption, or public relations issues. Rather, it arises from their ignorance, which seems to be prevalent among C-suite executives in various industries. Driven by the pressure to appease Wall Street, these CEOs have lost sight of the true purpose of their companies. Their focus is no longer on delivering quality products like books, cups of coffee, movies, or TV shows. Their main objective is to generate substantial profits, disregarding the quality of their products.
This is evident in the recent Emmy nominations, where HBO Max, a prestigious platform that has undergone a rebranding under Warner Bros. Discovery, received the majority of nominations. The streaming landscape has disrupted long-standing working practices, replacing human instinct with artificial intelligence and disrupting workers’ income streams.
For instance, Mark Proksch, an actor, earned more from residuals during one season of guest appearances on ‘The Office’ than he has in five seasons of starring in ‘What We Do in the Shadows.’ The shift to streaming has created a situation where the studios claim they cannot afford to pay actors fairly due to the broken streaming model. These claims come from studio executives who are often multimillionaires and are the ones responsible for breaking the system.
This disconnect between executives and their employees is further emphasized by their exorbitant compensation packages. For instance, David Zaslav, Warner Bros. and Discovery’s CEO, earned $247 million in 2021. Such lavish earnings make it difficult to accept his refusal to address issues that have led to significant losses in income for middle-class actors.
Hollywood CEOs rushed into the streaming trend, mimicking Netflix’s success without considering its sustainability. They relied on the constant production of new and costly content created by unionized talent. They were wrong to assume that labor would comply with their flawed business model. The actors and writers should not bear the consequences of a pivot they did not initiate.
If the studios are truly struggling due to their misguided approach to streaming, which is debatable considering the massive compensation packages of their executives, then we should all face the consequences. During lean times, sacrifices must be made, but during prosperous periods, profits should be shared. This is the crux of the negotiations. Executives can only rectify the situation by focusing on delivering exceptional programming, a task impossible without the actors and writers.
Hollywood executives have adopted a Marie Antoinette-like attitude, delivering insensitive lines while unaware that the revolutionaries are already dismantling the palace. The cast of ‘Oppenheimer’ walked out of its premiere in London, while press tours for ‘Barbie’ have been halted, and even the stars’ social media accounts have gone dark. The Emmys may be postponed, and Comic-Con will lack the presence of actors and writers. Hopefully, the studios will soon realize that good entertainment is always good business, even if it temporarily hurts shareholders.
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