Warner Bros. Discovery says Hollywood strikes could cost company up to $500M this year

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Warner Bros. Discovery cut its earnings outlook for the year by hundreds of millions of dollars, blaming the ongoing Hollywood actors and writers strikes.

since May asking for a guaranteed number of writers per room, increased pay and regulated use of artificial intelligence in the writing process.

Actors and comedians Tina Fey, center, and Fred Armisen, right, join striking members of the Writers Guild of America on the picket line during a rally outside Silvercup Studios, Tuesday May 9, 2023, in New York. Actors, represented by Screen Actors Guild-American Federation of Television and Radio Artists 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. The Warner Bros. logo outside the Warner Bros Studio lot in Burbank, California, 30th September 2008."While [Warner Bros. Discovery] is hopeful that these strikes will be resolved soon, it cannot predict when the strikes will ultimately end," the SEC filing reads. "With both guilds still on strike today, the Company now assumes the financial impact to [Warner Bros. Discovery] of these strikes will persist through the end of 2023.

 

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