Continued strikes could lead to Hollywood’s ‘total collapse’, warns ex-exec.
Former Hollywood Executive Warns of Devastating Effects if Strikes Continue
Just three days after SAG-AFTRA showed solidarity with the WGA, a former Hollywood executive is sounding the alarm about the potential ”devastating effects” that could befall the film and television industries if both strikes are not resolved soon.
In an appearance on CBS’s Face the Nation, Barry Diller, chairman of IAC and Expedia Group and former CEO of Paramount Pictures, shared his concerns about the consequences of prolonged strikes.
“These conditions will potentially produce an absolute collapse of an entire industry if they persist past September 1,” Diller warned.
The impact of the strikes is already being felt, with Hollywood effectively shut down until a mutual agreement is reached between the studios and the two guilds. Actors and writers are unable to work, and the strikes will continue until labor demands for better compensation and creative protection against artificial intelligence are met.
Diller predicts that if no agreement is reached by Christmas, there will be a severe shortage of streaming and cable programs for audiences to enjoy next year. This, in turn, would lead to canceled streaming subscriptions and reduced revenue for the entertainment industry. Without sufficient cash flow, the industry would struggle to revive these programs.
To expedite a resolution, Diller proposes that studio executives and A-list actors each take a 25% pay cut.
“You have the actors’ union saying, ‘How dare these 10 people who run these companies earn all this money and won’t pay us?'” Diller explained. ”While, if you look at it on the other side, the top 10 actors get paid more than the top 10 executives. I’m not saying either is right. Actually, everybody’s probably overpaid at the top end.
“The one idea I had is to say, as a good-faith measure, both the executives and the most-paid actors should take a 25 percent pay cut to try and narrow, narrow the difference between those who get highly paid and those that don’t.”
However, other Hollywood experts share a pessimistic outlook on the situation. Jonathan Taplin, director emeritus of the University of Southern California’s Annenberg Innovation Lab, warns that there will be “a lot of blood in the water” and believes that ”this is not going to end well.” Veteran media analyst Michael Nathanson also expresses concern, stating that the industry’s economics are already challenging and a prolonged strike will only exacerbate the situation.
It’s important to note that certain union members represented by SAG-AFTRA, such as news anchors, soap actors, and game-show hosts, are not affected by the strikes as they operate under a different contract.
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