Hollywood Writers' Strike Will Continue For Several More Months, And Studios Plan To Let Them "Bleed Out"

As Hollywood approaches a monumental turning point in labor relations, an insider reveals that, regardless of whether the Screen Actors Guild - American Federation of Television and Radio Artists (SAG-AFTRA) goes on strike, studios are not planning to negotiate with the Writers Guild of America (WGA) for several months. The source, an industry veteran, believes there will be a protracted strike with studios allowing it to "bleed out," as originally reported by Deadline.

Hollywood Writers' Strike Will Continue for Several More Months

The writers' strike has already reached its 71st day, with the actors' union merely 30 hours away from a potential labor action. The Alliance of Motion Picture and Television Producers (AMPTP) plans to firmly hold their ground until late October before considering further talks with the WGA. This strategy, regarded by some as mere "cynical strike talk," is confirmed by studio and streamer sources as a long-standing plan; many are prepared for a labor cycle that might dramatically change Hollywood's landscape.

Since the WGA went on strike on May 2nd, Hollywood studios have received positive feedback from Wall Street, boosting their determination to "break the WGA," as one studio executive bluntly expressed. The studios and the AMPTP anticipate that by October, most writers will be financially strained due to months without work, forcing the WGA leadership to restart negotiations under less favorable conditions.

The endgame, according to one studio executive, is to let the situation drag on until union members are on the verge of losing their homes.

Some insiders acknowledge the ruthlessness of this approach, even describing it as "a cruel but necessary evil." The endgame, according to one studio executive, is to let the situation drag on until union members are on the verge of losing their homes. Under such circumstances, the studios and streamers hope to dictate the terms of any potential deal.

The WGA’s past success in dismantling the lucrative practice of packaging, winning agency by agency until the final holdout WME backed down in 2021, has led studios and streamers to believe that conceding to the writers' demands could set a precedent, resulting in a strike at the end of every contract cycle. As such, the AMPTP is aiming to hold firm.

Although AMPTP refutes the so-called October surprise, the organization has yet to make any moves toward resolution since the WGA strike began in early May. Despite the WGA's repeated public offers to meet, the AMPTP insists there has been no direct offer from the WGA leadership to resume talks. This silent standoff coincides with a shift in network schedules to unscripted shows and foreign content, saving studios money on halted productions.

Concurrently, the AMPTP successfully negotiated with the Director's Guild in late May, a strategy that further bolsters their divide-and-conquer approach. Despite the looming possibility of SAG-AFTRA joining the WGA on the picket lines, studios hope to bring actors back to the negotiating table swiftly.

A new SAG-AFTRA agreement wouldn't necessarily restart production but could permit actors to promote already-scheduled releases, a move that studios hope would add further pressure on the WGA towards the end of the year. The ongoing situation is indicative of the rising tension between Hollywood's creative workforce and the industry’s power brokers, a standoff that could reshape the future of entertainment.

Many award shows were already affected by the writer's strike, such as the MTV Movie Awards, Tony Awards, and Daytime Emmy Awards. They were either postponed, canceled, or telecast without a host or live audience. Many people who are waiting for the strike to end are concerned that the industry will continue to suffer until it has reached a conclusion.

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