Hollywood Warned of “Absolute Collapse” if Strike is Not Settled by September 1st
Barry Diller, the former CEO of Paramount and 20th Century Fox, has issued a dire warning to the entertainment industry, urging Hollywood to settle the ongoing actors and writers strike by September 1st or face an “absolute collapse.” Diller made this statement during his appearance on CBS’ “Face the Nation,” where he outlined the potential consequences of a prolonged strike.
Diller predicted that if the strike extends beyond a few months and is not resolved until Christmas or later, the industry will suffer significantly. He emphasized that there would be a scarcity of programs to watch in the following year, leading to a decrease in subscriptions and revenue for movie and television companies. This, in turn, would create a situation where there is insufficient funding available when the strike is eventually settled and the industry tries to resume production.
The strike began with the Writers’ Guild of America (WGA) in early May and was joined by SAG-AFTRA, the actors’ union, on Thursday. Despite five weeks of negotiations with the Alliance of Motion Picture and Television Producers, no new contract has been reached. Fran Drescher, president of SAG-AFTRA and known for her role in “The Nanny,” stated that the companies have shown a lack of willingness to engage in meaningful negotiations, which has hindered progress.
Diller acknowledged the absence of trust between the negotiating parties but proposed a September 1st deadline for reaching a settlement before the industry experiences more severe economic consequences. He stressed the importance of the entertainment business both domestically and as a significant export industry, emphasizing the potential collapse of an entire sector if the current conditions persist.
Key issues at stake for both guilds include residuals from streaming services and the utilization of artificial intelligence (AI) to create new works. Diller noted the conflict between complaints about high pay for studio heads and the salaries of top actors supporting the strike. He suggested that executives and highly paid actors should consider a 25% pay cut as a good faith measure to address the disparity.
Regarding AI’s impact on the industry, Diller believed that the concerns are exaggerated. He stated that while there may be adjustments and assistance for writers, AI-generated actors or writers replacing human professionals is unlikely. Diller expressed his intention, alongside others in publishing, to pursue legal action against the use of copyrighted material by AI. Protecting copyright is crucial, he emphasized, as it is necessary to ensure the long-term viability of content production professionally.
Diller concluded that either legislation or litigation is essential to establish a business model that safeguards content creation. Failing to address this issue could have catastrophic consequences, and he urged the industry to take action before it’s too late. As the strike persists, the future of Hollywood hangs in the balance, with industry stakeholders closely monitoring developments in the ongoing negotiations.