In a bid to put an end to the ongoing Hollywood strike, media giants The Walt Disney Co. (NYSE: DIS) and Netflix (NASDAQ: NFLX) jointly unveiled the terms of their latest contract offer to striking writers. However, early indications suggest that the offer might not be enough to bring an end to the industrial dispute that has gripped the entertainment industry.
Disney’s CEO, Bob Iger, and Netflix’s co-CEO, Ted Sarandos, were part of a delegation of media industry executives that recently held talks with the leadership of the Writers Guild of America (WGA). The discussions resulted in the release of a fresh proposal made by Hollywood studios and media companies. This includes key provisions such as a guaranteed minimum length of employment, guidelines concerning the use of generative artificial intelligence, and wage increases.
This could be an indication of the growing frustration within the Hollywood studios, as writers have been on strike since May 2, with actors also joining the labor dispute in July.
The latest offer presented by the Alliance of Motion Picture and Television Producers (AMPTP), which includes Disney and Netflix, entails a 13% compound wage increase spread over a three-year contract. The proposal also concedes to some requests for minimum staffing but at levels lower than what the striking writers sought.
However, the Writers Guild of America has dismissed the offer, contending that it fails to adequately safeguard its members’ interests. In a statement to its members, the organization also accused the AMPTP of releasing the details with the intent to sow discord among its ranks.
As the dispute continues, it becomes evident that a resolution is not yet on the horizon.
Meanwhile, for investors interested in getting exposure to the media sector, the Invesco Dynamic Media ETF (PBS) is a good option. PBS has gained 5.3% year-to-date.
