Warner Bros. Execs Say Strikes Have Saved More Than $100 Million and David Zaslav Addresses Renegotiation Dates
Warner Bros. Discovery execs reported on Thursday during their Q2 earnings call that the SAG/AFTRA strike that has been ongoing over the summer has saved the company somewhere in the “low $100 million range.” Though negotiations have yet to resume between the unions and the studios, WBD says it is currently projecting an “early September” end to the strikes and return to TV and film production.
CEO David Zaslav said on the call with analysts:
“We’re in the business of storytelling. Our goal is to tell great stories, stories with the power to entertain and, when we’re at our best, inspire with stories that come to life on screens big and small. We cannot do any of that without the entirety of the creative community, the great creative community. Without the writers, directors, editors, producers, actors, the whole below-the-line crew. Our job is to enable and empower them to do their best work. We’re hopeful that all sides will get back to the negotiating room soon and that these strikes get resolved in a way that the writers and actors feel they are fairly compensated and their efforts and contributions are fully valued.”
He went on to say:
“It’s critically important that everybody, the writers, the directors, the actors and producers… everyone needs to be fairly compensated and they need to feel valued and feel that they’re fairly compensated in order to do their best work. And we have to focus on getting that done. I’m hopeful that it’s going to happen soon. I think all of us in this business are very keen to figure out a solution as quickly as possible. We are in some uncharted waters, in terms of the world as it is today and measuring it all. And so I think, in good faith, we all got to fight to get this resolved. And it needs to be resolved in a way that the creative community feels fairly compensated and fully valued.”
Warner Bros. Discovery CFO Gunnar Wiedenfels stated:
“While we are hoping for a fast resolution, our modeling assumes a return to work date in early September, should the strikes run through the end of the year, I would expect several $100 million upside to our free cash flow guidance and some incremental downside for adjusted EBITDA.”
At least someone is making money during the strike, and it’s a good thing it’s these huge studios! Hopefully the negotiations go the way of the SAG-AFTRA and WGA unions, and the film and TV actors and writers can get back to work on their terms.