Actors’ and writers’ strikes could lead to Hollywood’s ‘absolute collapse’ if not resolved soon, says former Paramount CEO

Former Paramount CEO Barry Diller made a grim prediction for Hollywood on Sunday, warning that the industry faces “absolute meltdown” if the Writers and Screen Actors Guild’s joint strike drags on until September. autumn.

“What’s going to happen is if, in fact, it’s not all settled before Christmas or so, then next year there won’t be a lot of programs to watch. So you’re going to see subscriptions being taken away, which is going to cut into the revenue of all these movie companies, TV companies, the result of which is that there will be no programs,” Diller said on CBS’ “Face the Nation” Sunday. “And just then, [the] the strike is settled that you want to get up, there won’t be enough money.”

Hollywood actors joined screenwriters in their months-long strike against studios, streaming services and production companies represented by the Alliance of Film and Television Producers (AMPTP) last week, marking the first time in more than six decades that the two unions have been on strike at the same time.

CINEMAISTS WEIGH ON REQUESTS MADE BY STRIKING ACTORS AND WRITERS: I AM ALL FOR THIS”

Meredith Stiehm, left, president of Writers Guild of America West, and Fran Drescher, president of SAG-AFTRA, take part in a rally of striking writers outside the Paramount Pictures studio in Los Angeles on May 8, 2023. (AP Photo/Chris Pizzello, File)

Since May, writers, represented by the Writers Guild of America (WGA) were on strike asking for a guaranteed number of writers per room, a salary increase, and regulated use of artificial intelligence (AI) in the writing process. The actors, represented by the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA), want increased minimum pay rates, increased streaming residuals and guarantees from studios and production companies on the exactly how the AI ​​will be used. The strike has impacted film and TV production and is expected to cost the industry more than $3 billion in losses.

Diller said Hollywood was in the throes of a “perfect storm,” adding that he didn’t believe there was enough “trust” between the parties to come to a resolution quickly.

The writers’ strike has been going on since May 2. (FREDERIC J. BROWN/AFP)

“The problem is that all the strikes are settled. The problem with this one is because you had COVID, which sent people home to watch streaming TV and killed the cinemas You had the results of huge investments in streaming that produced all of these losses for all of these companies that are now kind of entrenching themselves So right now this kind of perfect storm it’s alright so It gets sorted out next month, but what if it doesn’t? And there doesn’t seem to be enough confidence and energy to get it sorted out soon.”

The president of the IAC said he believed that a September 1 payment deadline should be agreed upon by studios, streaming services and union leaders representing film and television actors to avoid “devastating” effects on the entertainment industry.

“I think there should be a deadline for settlement because this will actually have devastating effects if it’s not settled quickly,” he said, adding that while the public may seem disinterested in the internal chaos of Hollywood, the truth is that “it’s a huge deal”. , both in the domestic market and for global exporters.”

“It looks like I’m crying to the sky,” he added, “but these conditions will potentially produce an absolute collapse of an entire industry.”

At the center of the negotiations are concerns about the unregulated use of artificial intelligence and the effects on players’ compensation brought about by the new streaming ecosystem.

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Jason Sudeikis joins members of the Writers Guild of America East and SAG-AFTRA as they march the picket line outside NBC Rockefeller Center on July 14, 2023 in New York City. (Photo by Alexi Rosenfeld/Getty Images) (Photo by Alexi Rosenfeld/Getty Images)

Diller said he believed the concern of AI replacing the roles of actors and writers is “overhyped to death”, telling host Margaret Brennan that he thinks actors will be “assisted” – rather than “replaced” by emerging technology.

Regarding the compensation claims, Diller said, “You’ve got the actors union, saying, ‘How are these 10 people running these companies making all this money and not going to pay us? Whereas if you look at the other side, the top ten actors are paid more than the top ten executives. I’m not saying either one is right. In fact, everyone is probably overpaid at the top.”

The Television Hall of Fame inductee suggested that top-paid executives and actors accept a 25% pay cut as a “good faith measure” to expedite a resolution if negotiations reach an impasse.

SAG-AFTRA President Fran Drescher speaks to members of the media while joining members of SAG-AFTRA and the WGA as they picket outside Netflix Studios on July 14, 2023 in Los Angeles, in California. (Photo by Emma McIntyre/Getty Images)

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“I’m not saying either one is right. Everyone probably overpaid at the top,” Diller said. “The only thought I’ve had is to say, in good faith, that the highest paid executives and actors should take a 25% pay cut to try to close the gap between those who are well paid and those who are not.”

Fox News’ Kendall Tietz contributed to this report.