Hollywood News Now: What an Actors Strike Could Mean for the Entertainment Industry

Photo from SAG-AFTRA's Instagram

What an Actors Strike Could Mean for the Entertainment Industry

By Movieguide® Contributor

The entertainment industry face a couple of complicated upcoming months as the Screen Actors Guild (SAG-AFTRA) agreements expires, leading to a possible actors strike.

While the contract was set to expire on June 30th, the SAG-AFTRA agreed to extend the deadline to July 12 so those involved in negotiations wouldn't have to forgo Fourth of July celebrations. The extension, however, should not be seen as the SAG-AFTRA folding to pressure, nor does it guarantee that a deal will be made.

"No one should mistake this extension for weakness," SAG-AFTRA president, Fran Drescher said in an email to union members. "We see you. We hear you. We are you."

Last week, SAG-AFTRA members made it known how serious they were about going on strike. A letter signed by over 1,000 actors became public last week telling SAG-AFTRA leadership that they are "ready to strike" if the guild doesn't get "all the way there" during negotiations with the studios.

The letter was endorsed by stars such as Meryl Streep, Jennifer Lawrence, Ben Stiller, Joaquin Phoenix, Aubrey Plaza, Jamie Lee Curtis, and Pedro Pascal.

The actors guild going on strike would hit Hollywood with a double whammy, as the writers guild continues into week nine of their own strike.

The writers guild strike has already significantly disrupted the entertainment industry, causing many productions to be pushed back at least a year and bringing scripted television to a halt due to the writers' integral part in their production. However, movies with an already complete script, along with unscripted television were able to continue with production largely unscathed.

A SAG-AFTRA strike would add to the disruption, bringing the entertainment industry to a near-complete halt.

Many unscripted shows would be required to pause production as most hosts of gameshows and other competition shows are members of SAG-AFTRA. With those shows gone, there would be little left on television untouched by the two strikes.

Hollywood would also shut down, as major productions would have to wait for a SAG-AFTRA strike to be resolved. Disney has already had to shift production of upcoming Marvel movies down the line due to the writers strike, and other production companies would have to follow suit if the actors strike. Although the upcoming summer and Q3 lineup would escape, moviegoers would begin to feel the repercussions starting in Q4 of this year and throughout 2024.

However, not everyone would lose during the strike. Streaming services, Netflix in particular, and other media distributors would likely bring in larger audiences as consumers look to other sources of entertainment.

"Netflix benefits from a deep backlog as well as international content that is unaffected by strike," explained Jason Helfstein, an analyst at Oppenheimer. "Additionally, Netflix is likely benefitting from media job cuts, as competitors struggle amid ad market weakness and subscription services cash drain."

"[Strikes pose] a big risk for Hollywood, because the possibility of an extended period of time without fresh content would play into the hands of every other form of engagement that doesn't require writers," Wolfe Researcher Peter Supino further added. Social media and shortform content on YouTube, Facebook and TikTok "are a natural place for people to go if they are bored with what's on TV."

Traditional media is already struggling to compete with these newer entertainment options; an actors strike and subsequent Hollywood shutdown would only accelerate the rate of viewers migrating to other media sources. To avoid a catastrophic double whammy, production companies will have to work quickly to produce a new SAG-AFTRA deal.

Movieguide® previously reported on the impact of the WGA strike:

Despite the success of THE SUPER MARIO BROS. MOVIE, lead voice actor, Chis Pratt is firm that talks of a sequel will not start until the Writers Guild of America (WGA) strike is finished. 

"We're in the midst of this writers' strike, and so everything has been paused and [put] on hold for the right reasons," Pratt said. "I really do support the WGA and our writers. When the negotiations have been completed, and the writers feel comfortable moving forward, then it'll be time to start talking about what's next for that." 

The WGA is striking for increased job security. The WGA is demanding that production companies keep AI out of the writer's room in order to stave off job replacement from the emerging technology.

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