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The Future. Despite studios bending over backwards to please Wall Street, the investor class isn’t too happy about the “double strike” that has effectively made Tinseltown a ghost town. While a deal will eventually get worked out, there may be an expiration date for when the damage done no longer becomes fundamentally transformational to the entertainment industry.
Creative cents
It doesn’t seem like Hollywood studios are winning the PR war with their VIP audience.
- Moody’s pegs the total cost of what the WGA, DGA, and SAG-AFTRA are asking for at $450 million to $600 million annually (for comparison, studios spent a combined $140 billion on content last year).
- PP Foresight says the strike will probably be a long one, thanks to the leverage of two unions being on strike simultaneously.
- Macquarie and Wells Fargo note the strike will significantly impact film and TV production, leaving holes in the release schedule starting this fall.
- Third Bridge says that’s bad for companies trying to make sure their streaming subscribers don’t churn and whose networks are facing advertising crunches.
Barry Diller, chairman of IAC and Expedia Group, founder of Fox Broadcasting Company, and former CEO of Paramount, said if a deal isn’t reached by September 1st, “these conditions will potentially produce an absolute collapse of an entire industry.”
No one wants to see those credits roll.
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