Structural problems
James McMahon, a professor at the University of Toronto and the author of The Political Economy of Hollywood: Capitalist Power and Cultural Production, told VOA in an email exchange that the sticking points between actors and the studios are structural and will be difficult to overcome.
“The decline of box-office receipts and the rise of video streaming are, I believe, two sides of the same problem,” he wrote. “The major studios have (a) struggled to get more people to watch more movies, especially in theaters; and (b) have struggled to produce filmed entertainment profits that are competitive to the profits of other large multinational firms. Video streaming seemingly comes to the rescue of declining box-office receipts. However, user growth in streaming is not infinite, and when growth slows, firms will find additional profit from streaming by raising prices and cutting costs.”
He said that studios have been able to extract more revenue by raising the price of streaming services, keeping residuals low, and hiring fewer writers.
“[T]hese are the ways, up until these strikes, the major studios have found additional opportunities to cut costs. These strikes feel ‘existential’ because the WGA and SAG-AFTRA are saying that these cost-cutting benefits have not been sufficiently negotiated, particularly for the welfare of the average actor or writer.”
Claims of greed
Fran Drescher, best known as the star of the 1990s television show "The Nanny," delivered a fiery speech Thursday in her capacity as current president of SAG-AFTRA, slamming the studios as greedy and selfish. She criticized the studios for resisting calls to raise actors’ pay at the same time that studio executives, like Disney CEO Bob Iger, are paid tens of millions of dollars per year.
“We are the victims here. We are being victimized by a very greedy entity. I am shocked by the way the people that we have been in business with are treating us,” she said.
“I cannot believe it, quite frankly, how far apart we are on so many things,” Drescher added. “How they plead poverty, that they’re losing money left and right when giving hundreds of millions of dollars to their CEOs. It is disgusting. Shame on them. They stand on the wrong side of history.”
In a press release responding to the strike, the AMPTP said, "A strike is certainly not the outcome we hoped for as studios cannot operate without the performers that bring our TV shows and films to life. The Union has regrettably chosen a path that will lead to financial hardship for countless thousands of people who depend on the industry."
Huge impact
The combined effect of the two strikes will be to stop production of most feature films and scripted television programs. The writers’ strike had already forced many productions to close down, but now even films and shows with completed scripts will be affected.
However, the strike’s impact will go deeper than halting production. The members of SAG-AFTRA will be barred from promoting any films in which they appear, including campaigning for honors such as the Academy Awards for films and the Emmy Awards for television programs.
On Thursday, the stars of "Oppenheimer" and "Barbie," two summer blockbusters scheduled for release this month, stopped participating in promotional events hyping the films. In the case of "Oppenheimer," the lead actors, including Cillian Murphy, Emily Blunt, Matt Damon and Florence Pugh, walked out in the middle of the film’s London premiere after the strike was announced.
