The show must go on! Broadway Union reaches a preliminary agreement in contract negotiations that could have canceled 45 shows by the end of the week

A deal has been reached between the union representing Broadway backstage workers, theater owners and producers to prevent a strike that would have shut down shows in New York City and on the road.

The tentative deal was announced by the Broadway League and Disney Theatrical Productions, representing producers, and the International Alliance of Theatrical Stage Employees (IATSE).

IATSE was holding a vote among its 1,500 members for strike action when they managed to reach a deal.

Had a strike gone ahead, 28 shows in New York City and 17 shows currently touring the United States and Canada would have ended overnight.

In a joint statement, the negotiators said: “The respective parties will inform their members about the details of this agreement in the coming days.”

The groups announced that they had reached a preliminary agreement that had already threatened a strike on Friday

It comes after Hollywood writers and actors continued their own strike, bringing production to a halt in Tinsel Town

The preliminary agreement must be ratified by regular members before it can come into effect and end the risk of a strike.

The exact details surrounding the tentative deal are unknown, but the union’s statement said arrangements were made to protect health care and provide accommodation for itinerant crews.

CNN reported that the two sides are still far apart in priorities, including higher salaries and reasonable weekly and daily rest periods.

A strike on Broadway would have been a blow to New York City’s economy, which continues to suffer from the shift from office work to people working from home.

Tourism is a major driver of the city’s economy, and Broadway is a major magnet for those tourists.

The Broadway League reported that in the season ending in May, the first full season since Broadway shows were disrupted by the pandemic, theaters reached a total attendance of 12.3 million and grossed $1.6 billion in ticket sales.

This latest threat comes as 160,000 actors represented by SAG-AFTRA, and 11,000 members of the Writers Guild of America continue their strike.

Under the rules of the strike, SAG-AFTRA’s 16,000 members are not allowed to film movies or TV series, participate in press or movie premieres, including at this month’s San Diego Comic-Con.

Picketers carry signs outside Netflix studios on Thursday as actor and writer strikes continue, July 20, 2023

Strike members picket outside the Disney Studios in Burbank, California, on Thursday, July 20

Among the shows likely to be affected are Ryan Murphy’s anthology series American Horror Story and the second season of the Star Wars series Andor.

Warner Bros. However, Discovery has indicated that Max’s House of the Dragon will not be affected as many of its actors are British.

Experts now say the double actor-writer strike could last for months.

During that time, major media conglomerates will feel the financial strain, while streaming services will fare only slightly better.

Moody’s debt analyst Neil Begley wrote that the company believes ‘this standstill may be a relatively long strike, with more at stake than in many years.

“With the parties remaining far apart, we estimate that an agreement that increases compensation under new collective bargaining agreements will ultimately cost Moody’s rated companies $450 million to $600 million annually for each year of a new three-year contract across all three guilds (Directors’ Guild of America, WGA and SAG-AFTRA,” he wrote in his report.

Moody’s debt analyst Neil Begley estimated that studios would have to spend $450 million to $600 million more a year to meet the demands of the writers and actors

As part of their demands, the two unions demand higher wages to combat inflation and guarantees for their future livelihoods.

In addition to salaries when they’re actively working, writers and actors earn payments called “residuals” every time a movie or show they’ve worked on airs on network or cable — which is especially helpful if they’re in between projects.

However, the boom in streaming services has significantly disrupted the residuals system.

“Streaming companies are feeling the heat from Wall Street to turn a profit,” said Third Bridge analyst Jamie Lumley. “This has challenged a number of players in balancing content costs, strategic decisions and audience growth.

“With actors and writers seeing contracts and royalties heavily impacted by streaming, the stakes are high for everyone at the negotiating table.”

He added: “We’ve heard that most streaming companies won’t feel the pain of the strikes until 2024, given the pipeline of content already embedded. However, streamers can run into problems once content speed slows down.

“Our experts emphasize that content is still king, and if streamers want subscribers to keep coming back, they need to have a steady supply of new movies and shows being released on their platforms.”