How will the American writers’ strike impact the Australian entertainment industry? May 23, 2023

Hollywood writers are on strike for the first time in 16 years

In early May 2023, the Writers’ Guild of America (WGA) hit the headlines when its negotiations with the Alliance of Motion Picture and Television Producers (the Alliance) failed. What followed was the first American writers’ strike in 16 years and now we wait to see how the Australian industry is affected.

Why an American writers strike?

In its negotiations with the Alliance, the WGA sought improvements in various conditions for its members, including:

• Higher pay 
• A stable pay structure
• Fairer deals, contracts and provisions about artificial intelligence
• Higher wages
• Adequate compensation for streaming residuals 
• A solution to the increased use of mini rooms. 

What happens if the strike is prolonged? 

If the strike continues, it will affect the American entertainment industry significantly. In fact, another important representative organisation, SAG-AFTRA , declared that the “industry will shut down all together”. 

What will happen in Australia?

It raises the question how Australia will be affected. 

Answers can be drawn through analysis of WGA’s last strike in 2007, which lasted for 100 days. Many American studios, streamers and networks simply shut down. With no new content to air, the US was forced to source its entertainment from overseas, particularly from English-speaking countries like the UK and Australia. Australia benefited from the strikes and will likely do so again. 

However, it’s also possible that the current strike could inspire similar protests in Australia, particularly if concern surrounding writers’ pay and compensation increases. This is fortified by the fact that the Australian Writers’ Guild recently came out with a statement, “supporting our fellow writers of the WGA in their current negotiations”. Beyond this statement however, the Australian Writers’ Guild hasn’t shown any intention to join the strikes.

The final word

The WGA strike could stretch on for months, if its previous strike is a barometer. It’s unknown how the strike will affect the Australian entertainment industry, but we’ll keep you informed of important developments. 

In the meantime, please contact us if you have any questions about the American writers’ strike or its impact on the Australian entertainment industry.