As negotiations for the Writers Guild of America and the Alliance of Movement Image and Tv Producers reached an settlement and a contract is to be voted on Tuesday, media corporations (DIS), (NFLX), (WBD), (PARA), (CMCSA) ought to leverage their present content material libraries to restrict their long-term profitability challenges, stated TECHnalysis Analysis president and chief analyst Bob O’Donnell.
The WGA and AMPTP reached a tentative settlement on Sunday after 146 days of strike, which started Might 2, and 5 consecutive days of negotiations. Some economists have estimated that the twin WGA and the Display Actors Guild-American Federation of Tv and Radio Artists strikes have price California’s financial system about $5 billion.
“[Producers] haven’t needed to pay these manufacturing prices for a very long time,” stated O’Donnell, “so, that’s been serving to the underside line for various shares.”
However long-term, he added, as new contracts for WGA and SAG-AFTRA are accepted, their profitability goes to be impacted as a result of writers are going to be given extra for streaming.
“That’s going to be a long-term problem for them,” he stated. “Within the close to time period, you have received hits that these corporations are going to take, in order that they’re nonetheless going to have to determine longer-term, how can they leverage [profits] into different areas?”
Which may appear to be leveraging income from video video games or amusement parks, like within the case of Disney and Common, “as a result of for pure streaming functions, it’s persevering with to be a massacre, and it’s not going to alter,” O’Donnell stated. “So, they’ll need to get smarter about how they’ll leverage the library throughout the board. That is the one method they’ll determine this out, as a result of there are not any magical bullets to resolve this drawback.”
Particulars of the brand new contract for the 11,000 WGA members are to be launched after the Guild’s Minimal Primary Settlement is finalized. Some points the WGA is trying to cowl are the usage of generative AI in content material manufacturing, a minimal staffing quantity, and a brand new mannequin for streaming residual income for writers.
SAG-AFTRA has continued to strike for his or her new contract since July 14.
Extra on the WGA strike outlook:
As negotiations for the Writers Guild of America and the Alliance of Movement Image and Tv Producers reached an settlement and a contract is to be voted on Tuesday, media corporations (DIS), (NFLX), (WBD), (PARA), (CMCSA) ought to leverage their present content material libraries to restrict their long-term profitability challenges, stated TECHnalysis Analysis president and chief analyst Bob O’Donnell.
The WGA and AMPTP reached a tentative settlement on Sunday after 146 days of strike, which started Might 2, and 5 consecutive days of negotiations. Some economists have estimated that the twin WGA and the Display Actors Guild-American Federation of Tv and Radio Artists strikes have price California’s financial system about $5 billion.
“[Producers] haven’t needed to pay these manufacturing prices for a very long time,” stated O’Donnell, “so, that’s been serving to the underside line for various shares.”
However long-term, he added, as new contracts for WGA and SAG-AFTRA are accepted, their profitability goes to be impacted as a result of writers are going to be given extra for streaming.
“That’s going to be a long-term problem for them,” he stated. “Within the close to time period, you have received hits that these corporations are going to take, in order that they’re nonetheless going to have to determine longer-term, how can they leverage [profits] into different areas?”
Which may appear to be leveraging income from video video games or amusement parks, like within the case of Disney and Common, “as a result of for pure streaming functions, it’s persevering with to be a massacre, and it’s not going to alter,” O’Donnell stated. “So, they’ll need to get smarter about how they’ll leverage the library throughout the board. That is the one method they’ll determine this out, as a result of there are not any magical bullets to resolve this drawback.”
Particulars of the brand new contract for the 11,000 WGA members are to be launched after the Guild’s Minimal Primary Settlement is finalized. Some points the WGA is trying to cowl are the usage of generative AI in content material manufacturing, a minimal staffing quantity, and a brand new mannequin for streaming residual income for writers.
SAG-AFTRA has continued to strike for his or her new contract since July 14.