Why the Hollywood Shutdown Matters

This summer, popular TV series such as Stranger Things and Abbott Elementary  suddenly shut down production. Late-night shows went dark. And network TV and streaming services piled up with reality series, game shows, and reruns.

Why? Hollywood writers and actors went on strike. It’s the first time since 1960 that the unions representing both groups were on strike simultaneously, bringing America’s $134 billion movie and TV business nearly to a halt.

The strikes—which were ongoing as of press time—pitted thousands of actors and TV and film writers against the old major studios, such as Universal and Paramount, and the tech newcomers like Netflix, Amazon, and Hulu. At the center of the dispute are big questions about how the entertainment industry should function in the streaming era and how it should adapt to new artificial intelligence (A.I.).

“Everything was basically in balance under the hegemony of five major studios,” says Barry Diller, a longtime media executive. “And then, oh my God, along come the tech companies in Netflix, Amazon, and Apple . . . the result of which is you have a business that’s just completely upended.”

This summer, popular TV series such as Stranger Things and Abbott Elementary suddenly shut down production. Late-night shows went dark. Network TV and streaming services piled up with reality series, game shows, and reruns.

Why? Hollywood writers and actors went on strike. It’s the first time since 1960 that the unions representing both groups were on strike simultaneously. It’s brought America’s $134 billion movie and TV business nearly to a halt.

The strikes are ongoing as of press time. It has pitted thousands of actors and TV and film writers against the old major studios, such as Universal and Paramount, and the tech newcomers like Netflix, Amazon, and Hulu. At the center of the dispute are big questions: How should the entertainment industry function in the streaming era? How should it adapt to new artificial intelligence (A.I.)?

“Everything was basically in balance under the hegemony of five major studios,” says Barry Diller, a longtime media executive. “And then, oh my God, along come the tech companies in Netflix, Amazon, and Apple . . . the result of which is you have a business that’s just completely upended.”

But the strikes, experts say, could have impacts even beyond the big—and small—screen.

They began in May, when the Writers Guild of America (W.G.A.), a union representing 11,500 TV and film writers, walked out, saying the rise of streaming services had eroded working conditions.

The number of scripted shows has surged over the past decade. But, the writers say, pay has stagnated. Additionally, the number of episodes in a typical season has drastically declined, and the writers say that’s essentially turned them into “gig workers,” jumping from one series to the next to earn enough pay.

But the strikes, experts say, could have impacts even beyond the big and small screens.

They began in May, when the Writers Guild of America (W.G.A.) walked out. The union represents 11,500 TV and film writers. They said the rise of streaming services had eroded working conditions.

The number of scripted shows has surged over the past decade. But, the writers say, pay has stayed the same. Additionally, the number of episodes in a typical season has drastically declined. The writers say that’s essentially turned them into “gig workers,” jumping from one series to the next to earn enough pay.

SAG-AFTRA, the union representing 160,000 actors, went on strike in July with similar concerns. Some big Hollywood stars—including Pete Davidson and Aubrey Plaza—have marched on picket lines. But the vast majority of actors, says Fran Drescher, president of SAG-AFTRA, are “just working people, just trying to make a living.”

In response, the Alliance of Motion Picture and Television Producers (A.M.P.T.P.), which bargains on behalf of Hollywood companies, says it’s made reasonable offers, including pay increases.

Studios also stress that all the industry upheaval hasn’t been easy for them either. Moviegoers have been slow to return to theaters since the pandemic, and home viewers have moved from cable and network TV to streaming services. The strikes, they say, have only added to those hardships.

“The union has regrettably chosen a path,” the A.M.P.T.P. said in a statement after the actors went on strike, “that will lead to financial hardship for countless thousands of people who depend on the industry.”

SAG-AFTRA, the union representing 160,000 actors, went on strike in July with similar concerns. Some big Hollywood stars—including Pete Davidson and Aubrey Plaza—have marched on picket lines. But the vast majority of actors, says Fran Drescher, president of SAG-AFTRA, are “just working people, just trying to make a living.”

In response, the Alliance of Motion Picture and Television Producers (A.M.P.T.P.), which bargains on behalf of Hollywood companies, says it’s made reasonable offers. The offers include pay increases.

Studios also stress that all the industry upheaval hasn’t been easy for them either. Moviegoers have been slow to return to theaters since the pandemic. Home viewers have moved from cable and network TV to streaming services. The strikes, they say, have only added to those hardships.

“The union has regrettably chosen a path,” the A.M.P.T.P. said in a statement after the actors went on strike, “that will lead to financial hardship for countless thousands of people who depend on the industry.”

The use of A.I. is another big sticking point. Screenwriters fear studios will use text generators, like ChatGPT, to create scripts. They also don’t want their work to be used to train A.I. software.

Actors are also concerned about A.I. Some films and shows, such as Ted Lasso, have already used visual effects technology to create crowd scenes by replicating extras—and eliminating the need to hire actual people. The movie Rogue One: A Star Wars Story even used visual effects to portray an actor who had died years before filming (with permission from the actor’s estate). Actors worry, though, that A.I. could be used without their consent to create digital replicas of their likenesses or to alter their performances.

The use of A.I. is another big sticking point. Screenwriters fear studios will use text generators, like ChatGPT, to create scripts. They also don’t want their work to be used to train A.I. software.

Actors are also concerned about A.I. Some films and shows, such as Ted Lasso, have already used visual effects technology to create crowd scenes by replicating extras. This has eliminated the need to hire actual people. The movie Rogue One: A Star Wars Story even used visual effects to portray an actor who had died years before filming. This was done with permission from the actor’s estate. Actors worry, though, that A.I. could be used without their consent. Digital replicas of their likenesses or alterations to their performances could be created without permission.

But the strikes could affect more than just the entertainment industry.

“The issue they’re dealing with is very widespread,” says Nelson Lichtenstein, a labor historian at the University of California, Santa Barbara. “That is: Will people be paid in such a way that they have a predictable source of income per year? Or is everything going to become kind of gig work, like Uber and DoorDash?”

The strikes may also be the first of many major labor disputes over chatbots and other A.I. in the workplace, especially in creative fields.

In the meantime, the dispute has put a damper on many career plans. Tristan Green, a 19-year-old aspiring actor from Greenville, North Carolina, spent the summer following the strike and wondering when he can start to pursue his dream of acting in a Hollywood blockbuster.

 “It’s kind of hard to have to put all that stuff on hold,” he says, adding:
“I just hope it gets resolved efficiently for both sides.”

But the strikes could affect more than just the entertainment industry.

“The issue they’re dealing with is very widespread,” says Nelson Lichtenstein, a labor historian at the University of California, Santa Barbara. “That is: Will people be paid in such a way that they have a predictable source of income per year? Or is everything going to become kind of gig work, like Uber and DoorDash?”

The strikes may also be the first of many major labor disputes over chatbots and other A.I. in the workplace, especially in creative fields.

In the meantime, the dispute has put a damper on many career plans. Tristan Green, a 19-year-old aspiring actor from Greenville, North Carolina, spent the summer following the strike. Now he wonders when he can start to pursue his dream of acting in a Hollywood blockbuster.

“It’s kind of hard to have to put all that stuff on hold,” he says, adding:
“I just hope it gets resolved efficiently for both sides.”

With reporting by Matt Stevens, John Koblin, Nicole Sperling, and Brooks Barnes of The New York Times.

With reporting by Matt Stevens, John Koblin, Nicole Sperling, and Brooks Barnes of The New York Times.