For the first time in decades, actors and writers are both striking in a move that could have a lasting impact on the movie and television industry. For investors, the latest industry news could put media stocks in the spotlight.
What Happened: Hollywood is striking amid a battle over streaming profits and decisions on how to account for the use of artificial intelligence in film and television.
This marks the first time there has been a double strike, with both the Screen Actors Guild and Writers Guild of America striking at the same time, since 1960. At that time, Marilyn Monroe was still acting and Ronald Reagan was leading the Screen Actors Guild.
"We are the victims here," Screen Actors Guild President Fran Drescher said." We are being victimized by a very greedy entity. I am shocked by the way the people that we have been in business with are treating us."
Reactions to Strike: Many media executives have been quiet on the strike and its impact. The Walt Disney Company (NYSE: DIS) CEO Bob Iger, however, did share his take.
"We've talked about disruptive forces on this business and all the challenges we're facing, the recovery from COVID which is ongoing, it's not completely back. This is the worst time in the world to add to that disruption," Iger said during a CNBC interview. "I understand any labor organization's desire to work on behalf of its members to get the most compensation and be compensated fairly based on the value that they deliver."
Iger said that expectations from those on strike might not be realistic.
"And they are adding to the set of the challenges that this business is already facing that is, quite frankly, very disruptive," he said.
President Joe Biden, on the other hand, spoke in support of those striking, with a spokesperson providing a statement, according to Deadline.
"The President believes all workers - including actors - deserve fair pay and benefits. The President supports workers' right to strike and hopes the parties can reach a mutually beneficial agreement," White House spokesperson Robyn Patterson said.
Congress members from California also spoke out on the strike:
Sen. Alex Padilla (D-CA): "Every worker deserves a good wage and working conditions. I urge both sides to come to a fair agreement that reflects the changes across the industry."
Rep. Barbara Lee (D-CA): "It's wrong that the talented artists of SAG-AFTRA who bring stories to life are barely surviving while studios are thriving."
Rep. Adam Schiff (D-CA): "I want you to know I stand with you. This is personal for me. This is the fight to make the economy work for people again. The industry is very profitable and you should share in those profits."
Actors and members of Hollywood have also spoken out. Here are some of the highlighted quotes:
George Clooney: "Actors and writers in large numbers have lost their ability to make a living. This is an infection point in our industry. For our industry to survive that has to change. For actors, that journey starts now."
Daniel Radcliffe: "Technology has changed so much about the industry in the last 10 years, it feels like it's absolutely time. With all the AI stuff, which also - that feels very important right now. We are probably one of the first industries that's going to have a say in how this stuff affects us."
Matt Damon: "It's the difference between having healthcare or not for a lot of actors. And we've got to do what's right by them."