How the Writer Strike Could Impact Disney
The Writers Guild of America (WGA) officially started to strike at 12:01 a.m. on Tuesday, May 2nd.
Already, picket lines are overflowing with clever signs like this one:
You won’t find better signs than at a WGA picket line pic.twitter.com/L3kMIHzFP9
— Dylan Park-Pettiford (@dyllyp) May 2, 2023
Alas, Disney has become a lightning rod for WGA strikers. This sign speaks volumes:
"Eat Bob Iger" (CEO of Disney) pic.twitter.com/V779SQneIx
— More Perfect Union (@MorePerfectUS) May 3, 2023
So, yes, the writer’s strike will impact Disney in several ways. Here’s how.
The Roots of the Problem
I’m not someone who believes that the writer’s strike is Disney’s fault. In fact, Disney appears to want to strike a deal quicker than its competitors.
Some streaming services, most notably Warner Bros. Discovery (WBD), could trigger “force majeure” clauses after a set period.
Deadline defines these clauses as “a provision in a contract that addresses the parties’ obligations if an extraordinary event directly prevents one or both parties from performing.”
Yes, a strike qualifies as an “extraordinary event” in this context. Should the strike linger for months, these “force majeure” agreements could trigger.
In that case, companies like WBD can escape current contracts they find financially lacking.
Let’s use a past example to explain. Netflix signed producer Kenya Barris of Black-ish to a $100 million contract. The agreement didn’t work out, and Barris left.
However, if Barris were still working for the company, Netflix could now use “force majeure” to escape a contract it doesn’t like.
You probably read/heard that WBD has cut lots of content as a cost-cutting measure in anticipation of a likely sale/merger in 2024.
An extended strike helps WBD clean its balance sheet for next year.
Still, when writers and analysts discuss the sticking points in the writer’s strike, the topic isn’t primarily WBD. People have made their peace with that one.
Instead, writers worry about “mandatory staffing” and “duration of employment.” And there’s the side issue of the Mini Room for writers.
Why Disney Takes the Blame for These Three Problems
Okay, let me be clear on one point. Most streaming services absorb their fair share of criticism for business practices.
The reason why is logical. Streaming remains a nascent business in total, and many of the significant companies in terms of market share are new.
Disney+ debuted in 2019, and it’s older than HBO Max, Paramount+, and Peacock.
When you’re new to an industry, you’ll make more mistakes. On top of that, the rules changed in midstream.
Wall Street initially prioritized subscriber growth as the primary metric of note, especially during the early part of the pandemic.
Last year, investors decided that a path to profitability mattered more. This change in approach has forced plenty of cost-cutting measures throughout the industry.
Writers complain about the mandatory staffing issue because they view the lack of it as an existential threat.
Previously, entertainment corporations hired a writing staff via contracts.
This practice ensured that a set number of people would maintain their writing jobs for the duration of the agreement.
In recent years, Hollywood has adopted a different approach. It has reduced the number of contracted/salaried employees as much as possible.
In some instances, writers for shows complain that corporations arbitrarily eliminated staff and thereby threw an exponentially larger workload at a smaller crew.
Similarly, streaming companies have reduced the amount of guaranteed work time for writers so much that it’s bordering on a freelance gig.
Disney appears guilty of both practices, as the company prefers shorter seasons for its streaming content on Disney+ and Hulu+.
For example, Hawkeye on Disney+ only filmed six episodes. The company’s decision-makers have reevaluated how they should pay talent for such short series.
And that leads us to…
Disney’s Greatest Crime
While planning its Marvel programming, Disney famously leaned on an emerging concept called the Mini Room.
Writers haaaaaaate this, and I know because I’ve had to listen to them complain about it ceaselessly.
No matter what anybody says, the Mini Room looms large among the WGA’s issues with streaming service.
In a Mini Room, a group of maybe four writers create a story as opposed to a group of 10-15.
During a Mini Room, the company holds no obligation to hire anybody for the filming of the show.
By the end of the process, only one person could work on everything, which is a brutal workload.
You’ve likely experienced a scenario at work wherein layoffs occurred. Some of those job assignments fell on you, making your life harder.
Writers face the same fate, but since you can count their co-workers on one hand in many instances, it’s that much harder.
Disney didn’t necessarily create the Mini Room – there’s some debate on that – but Marvel shows are notorious for heightening the awareness of them.
To its credit, Disney hasn’t held up negotiations the way that some of its peers have. Netflix and WBD are apparently the key holdouts here.
Still, all three of the WGA’s most pressing issues are ones where Disney streaming executives carry some blame.
How the Writer Strike Could Impact Disney
Most WGA strikes have lasted around three months. The longest one lasted for five months. So, we’re speculating here based on an expected length.
If the strike lasts for 100 days or so, Disney’s current productions would fall behind schedule.
The entire industry is still suffering a content shortage caused by the pandemic and then magnified by the Wall Street-dictated budget cuts last year.
Now, we’ll have even less content than expected due to this new factor.
Also, this scenario seems likely to unfold since some of the companies have that “force majeure” clause they’d like to trigger.
They WANT the strike to last three months. Disney isn’t like that, as it monetizes its content better than anyone else on the planet.
So, the strike hurts Disney more than most. Upcoming titles like The Marvels and the currently in-production Daredevil could struggle.
Meanwhile, Disney only recently announced three new Star Wars movies.
None of them can get off the ground right now, leaving the divisive third season of The Mandalorian (which I happened to like) as the most current Star Wars title.
That status could remain throughout 2023. A contributor for Puck believes that it’ll last into November. I’m not that pessimistic, but anything’s possible.
The writers face what they describe as an existential threat, one that could permanently reduce them to freelancers without health/medical benefits.
Disney would like this settled, but it’s currently stuck in the middle.
What Happens Next?
Realistically, all we’ll hear about for the next few weeks are a few clever signs. After all, these are writers.
When they stand in line all day, they have plenty of time to get creative with their signs.
Beyond that, the WGA acknowledges that there was little movement on the pressing issues I’ve mentioned.
Instead, corporations will happily pay more in exchange for the WGA agreeing to most of the current contract language.
Fifteen years ago, the WGA punted on streaming, which was barely even a thing at the time.
Since then, corporations have discovered countless loopholes they could exploit. And yes, Disney is a primary offender here.
The WGA wants protective language in the next agreement, which streaming companies are loathe to give. They loooove those loopholes. So, we’re all stuck for now.
Late night talk shows have all closed shop for a while. The current wave of new content on streaming services will dry up quickly.
Even in post-production, writers add dialogue. Their absence effectively closes all productions for the foreseeable future.
Oddly, you won’t notice the problem now as much as in four months. Even after the WGA agrees to a new contract, we’ll still face a content shortage.
Getting productions back up and running again will take some time.
Until then, just enjoy the picket line signs and other wholesome stories that come out during the dispute.
For example, Jay Leno has continued a practice from the 2007 strike. He has brought donuts to picketers on the front line.
Jay Leno just came to Disney to hand out donuts to us writers. Thank you @jayleno for the solidarity!! #WGAStrong pic.twitter.com/4pq8kpWTSk
— Caroline Renard (@carolinerenard_) May 2, 2023
You can follow the #WGAStrong hashtag on social media if you want to keep up with the story as it unfolds.
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Feature Photo: Cincinnati Enquirer