Hollywood writers go on strike: Here is what to know

More than 11,000 Writers Guild of America (WGA) members are on strike, shaking Hollywood as the entertainment business grapples with seismic changes brought on by the global streaming TV boom.

Here’s what you need to know about the strike:

Why do writers stand out?

The writers claim that streaming has negatively affected them and say they work more for less money.

They seek better compensation for their work on movie, television and streaming shows and residual pay that rewards writers when a show becomes a hit.

The WGA declared its first work stoppage in 15 years after failing to agree on higher wages from studios like Walt Disney and Netflix. It represents approximately 11,500 writers in New York, Los Angeles and elsewhere.

The picketing begins Tuesday afternoon, according to the WGA West.

What do the studios say?

The Alliance of Motion Picture and Television Producers, the trade group that negotiates the union contract on behalf of the leading studios and producers, says it is seeking a fair and just contract.

On Monday it said it was offering “generous compensation increases” to writers, but the two sides were unable to reach a deal.

Media companies are also facing a difficult economic situation.

Conglomerates are under pressure from Wall Street to make their streaming services profitable after investing billions of dollars in programs to attract subscribers.

The rise of streaming has led to declining television advertising revenues as traditional TV audiences shrink and advertisers look elsewhere. In addition, the threat of a recession in the world’s largest economy is also looming.

What are the bottlenecks?

Producers were willing to raise offers for higher wages and residuals, the alliance said, but were “unwilling to do so due to the magnitude of other proposals still on the table that the Guild continues to press.”

The main sticking points, it said, were proposals that would “require a company to staff a show with a certain number of writers for a certain period of time, whether necessary or not”.

The WGA countered that the studios’ responses to its proposals were “completely inadequate given the existential crisis writers face.”

Writers say they have suffered financially from the streaming TV boom, in part because of shorter seasons and smaller residual payments.

Half of TV series writers now work for minimum wage, compared to a third in the 2013-2014 season, according to WGA statistics. Average pay for scribes at the senior level of writer/producer has dropped 4 percent over the past decade.

The last WGA strike, in 2007 and 2008, cost the California economy an estimated $2.1 billion as productions shut down and unemployed writers, actors and producers cut spending.

How is AI a factor?

With the rise of artificial intelligence software, the WGA wants safeguards to prevent studios from using AI to generate new scripts based on writers’ previous work.

Writers also want to make sure they aren’t being asked to rewrite draft scripts created by AI.

Which shows will feel the effect?

Nighttime talk shows like Jimmy Kimmel Live and The Tonight Show Starring Jimmy Fallon are expected to drop immediately and air reruns.

That means new episodes won’t be available on traditional networks or on streaming services like Hulu and Peacock that make the shows available the next day.

The next to be disrupted are daytime soap operas, as they are traditionally written not long before they are filmed.

Primetime comedies and dramas currently airing should be able to complete seasons uninterrupted – their episodes for the next few weeks have already been written and filmed.

What can happen if the strike continues?

A prolonged strike could delay the start of the fall TV season. Writing for fall shows normally begins in May or June.

If the work stoppage becomes prolonged, the networks will increasingly fill their programming with unscripted reality shows, newsmagazines and reruns.

What about streaming services?

Netflix has said it can feed its service with shows produced outside the United States. But the US-based series would be affected if a strike continues.

HBO Max, which is changing its name to Max at the end of May, has been saving programming to release with its rebrand.

This combination of images shows promotional art for White House Plumbers, a series that premiered May 1 on HBO Max, left, Jewish Matchmaking, a series that premiered May 3 on Netflix, center, and Bupkis, which premiered May 4 premiered on Peacock [HBO Max/Netflix/Peacock/AP]

Which shows are safe?

News programs continue because their writers are under another union.

The same goes for unscripted reality shows like Big Brother and The Bachelor.

What about movies?

The influx of movies into theaters won’t be an instant hit, as movies take two to three years to produce, and studios have a pipeline of movies already written and shot.

It would take a lengthy strike to interrupt movie release schedules.