The effects of the ongoing Writers Guild of America (WGA) strike continue to be felt in Hollywood. Multiple major studios, including Amazon, HBO, Warner Bros. TV, NBCUniversal, Disney, and CBS Studios, are now suspending first-look and overall deals amid the strike. While termination has not been broached by most studios, some have raised it as an option in order to maintain transparency.
Amazon will be sending letters on Monday notifying those affected. However, the studio does have some carveouts for creatives who are rendering producing services but non-writing. HBO is said to be making calls to alert individuals, but letters have not been sent yet. Other studios, such as Disney, have already sent out letters to anyone with an overall deal who currently isn’t working.
Most studios are avoiding termination, but there is variation in terms of which overall deals are being suspended. Some studios are choosing not to suspend deals with showrunners whom they expect to continue non-writing producer duties.
While the news of overall deals being suspended is not unexpected, it is somewhat jarring. According to multiple agency sources who spoke to Variety, they and their clients have been prepared for this scenario since the strike talk became more serious. Taking part in a “labor action” like a strike allows the studio to suspend a deal and stop payments, as clearly laid out in the contracts for such deals.
Agents emphasized that no one has heard any talk of outright terminating deals at this point. Such a move would be drastic and likely would only occur if the strike drags on for an extended period of time. It has been speculated that such a move could allow the studios to cut off expensive deals with big-name producers who are not necessarily producing much content.
While the strike continues, picketing is ongoing in New York City, Los Angeles, and Atlanta. Although the studios are feeling the effects of the strike, it remains to be seen how long it will last and what further actions will be taken. The entertainment industry at large is waiting with bated breath, hoping for a resolution that will allow production to resume.
