In 2023, the entertainment industry faced significant turbulence due to the Writers Guild of America West (WGAW) strike. The annual financial report for the fiscal year ending March 31, 2024, provides a clear view of the profound impacts these strikes had on writers across various fields.
A Stark Decline in Employment and Earnings
The data is stark: a 19.5% decline in writer employment, dropping from the previous year. This equated to only 5,501 writers being employed in 2023 across all fields. This drop in employment directly influenced earnings, which plummeted by 31.8% to a total of $1.29 billion.
For television and digital platform writers, the numbers were even more grim. Earnings for these writers fell by 35%, totaling $916.6 million. This segment also saw a 22.1% decline in total employment, with only 4,441 writers earning income in this sector.
Screenwriters, essential to the creation of movies, weren't spared either. Their earnings declined by 22.4% to $373 million, and employment decreased by 15.8%, affecting 1,918 writers in the industry.
The Silver Lining: Residuals
Despite these challenges, there was a silver lining. The WGAW collected $598.50 million in residuals, marking a 3.5% increase from the previous year. Television residuals, which include payments for repeated airings of content, reached $396.37 million, accounting for 66.2% of the total residuals.
Interestingly, new media residuals on television continued to grow, totaling $134.33 million, a 14.8% increase from the prior year. This increase underscores the shift towards streaming platforms and the demand for content in this space.
High Budget SVOD (Subscription Video on Demand) residuals saw a significant surge, climbing 45.6% to $57.37 million. This increase was fueled by the growth in streaming projects and improved contractual terms from the 2020 Minimum Basic Agreement (MBA).
The Global Perspective and Declining Sectors
While some areas saw growth, others, like domestic syndication and feature film residuals, continued to decline. Domestic syndication residuals fell by 12.1%, marking a continued five-year decrease of 52.8%. Feature film residuals decreased by 14.5% to $202.13 million.
Moreover, the shift from traditional pay TV to streaming platforms has led to a continued decline in pay TV residuals, which fell by 6.4%, part of a broader five-year drop of 43.7%.
Guild Finances and Oversight
The WGAW ended the fiscal year with more than $100 million in net assets, despite running a $1.5 million operating deficit. The Membership and Finance Committee, chaired by Betsy Thomas and composed of members like Travis Donnelly and Peter Murrieta, oversees the Guild's finances, ensuring transparency and accountability through annual audits conducted by the independent accounting firm Miller Kaplan Arase LLP.
Conclusion
The 2023 strikes have undeniably reshaped the landscape of the writing profession within the entertainment industry. While the decline in employment and earnings paints a somber picture, the increase in residuals from new media platforms offers a beacon of hope for writers navigating this evolving industry. As streaming continues to gain traction, it will be crucial for writers and the Guild to adapt and thrive in this new digital era.
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