The ongoing double strike in Hollywood is currently the talk of the town. The strikes have severely affected the production of many highly anticipated films and series, and many production houses have shown their concern about this as well.
However, Warner Bros. Discovery seems unbothered by the hiatus, as, according to a report, the strike is currently benefiting them. The WB executives have claimed that if the strike continues through the end of the year, it can save the studio over $100 million.
Warner Bros. benefited from ongoing strikes
The ongoing strikes have affected many production houses, as, due to the strike, many major productions have been put on hiatus. However, amidst the crises, WB has found a silver lining, as the strike has helped the studio save over $100 million. During the Q2 earnings call, Warner Bros. Discovery CFO Gunnar Wiedenfels stated that the studio saved more than 100 million dollars due to the strike.
This saving is enough to compensate for the loss previously incurred by the failure of Zachary Levi’s starring film, Shazam 2. The film’s poor performance at the box office resulted in a great loss for the studios, as the film could only make $30 million domestically, which is way less than its production budget which was around 100 million dollars. But now that the studios have saved a good amount due to the strike, it might balance out somewhere.
However, Wiedenfels asserted that his $100 million figure was based on the assumption that it may save this amount only if the strike continues until the end of the year.
The strike may cause severe damage in the long run
Though Warner Bros. Discovery is likely to get some advantage if the strikes persist, it isn’t certainly the aim of any production house as the strike may severely impact it in the long run. According to the executive of WB, the strikes have created uncertainty for the production houses, and they may impact the schedule and performance of upcoming films, and also affect content production and delivery.
The writers’ strike began on May 2, and following this, actors also walked off from their jobs and joined the strike. Both WGA and SAG-AFTRA coincide together, marking the history of Hollywood, as it’s the first time Hollywood is witnessing a double strike. The purpose behind the strike is to get equitable remuneration and job security, as writers and actors fear that they will be replaced by AI in the future.
Source: CBR.com
