Warner Bros. Discovery warns Hollywood strikes could hurt business
CEO David Zaslav said he hopes a resolution is reached soon
Hollywood execs warn of significant strike fallout
Constellation Research CEO Ray Wang and FOX Business’ Kelly O’Grady weigh in on the Hollywood strikes and detail its impact on the economy and streaming production on ‘Cavuto: Coast to Coast.’
Warner Bros. Discovery acknowledged Thursday that the ongoing Hollywood writers' and actors' strikes could hit its bottom line, and CEO David Zaslav said he hopes a resolution can be reached soon.
Chief Financial Officer Gunnar Wiedenfels said during the company's second-quarter earnings call that the strikes "may have implications for the timing and performance of the remainder of the film slate as well as our ability to produce and deliver content."
"While we are hoping for a fast resolution, our modeling assumes a return-to-work date in early September," he added.
Warner Bros. Discovery CEO David Zaslav attends the 2022 TIME100 Gala on June 8, 2022, in New York City. Zaslav said Thursday he is hopeful a resolution will be reached soon in the ongoing Hollywood actors' and writers' strikes. (Getty Images / Getty Images)
Zaslav echoed those sentiments, saying, "We're hopeful that all sides will get back to the negotiating room soon, that these strikes get resolved in a way that the writers and actors feel they are fairly compensated and their efforts and contributions are fully valued."
THIS IS THE ‘WRONG TIME’ FOR WRITERS' STRIKE: MARC DEVOISE
Hollywood's actors and screenwriters are on strike together for the first time in over six decades, after actors joined writers a few weeks ago in their monthslong strike against the studios.
A worker wheels equipment past the famous Hollywood sign as preparations continue on March 8, 2023, for the 95th Academy Awards at the Dolby Theatre in Los Angeles. Television and movie writers have been on strike since May, and actors joined the str (AP Photo/J. David Ake / AP Newsroom)
The writers, represented by the Writers Guild of America (WGA) have been on strike since May asking for a guaranteed number of writers per room, increased pay and regulated use of artificial intelligence (AI) in the writing process.
Actors, represented by Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) want increased minimum pay rates, increased streaming residuals and guarantees from studio and production companies about how, exactly, AI will be used.
The strike has impacted the production of film and television series and is expected to cost the industry more than $3 billion in losses.
Members of the Writers Guild of America and the Screen Actors Guild walk a picket line outside of Warner Bros. Studio in Burbank, California, on July 26, 2023. (VALERIE MACON/AFP via Getty Images / Getty Images)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WBD | WARNER BROS. DISCOVERY INC. | 10.11 | -0.12 | -1.17% |
Warner Bros Discovery, Inc.
Warner Bros. Discovery posted a $1.24 billion loss for the quarter ending in June, which saw some high-profile box office flops including "The Flash." It also spent big on marketing costs for its widely successful "Barbie" film, which was released last month.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
FOX News' Yael Halon and Reuters contributed to this report.