The Hollywood actors’ union has reached a labor deal with studios, alleviating concerns about the summer box-office calendar. However, companies like Sony, Warner Bros. Discovery, and AMC are experiencing negative impacts from the strike.
The Resolution of the Actors’ Strike
After a prolonged strike by the Screen Actors Guild-American Federation of Television and Radio Artists, the actors’ union has finally reached a labor deal with studios. This agreement comes as a relief for the upcoming summer box-office calendar, with the potential to protect it from further disruption.
Impacts on Entertainment Companies
While Disney CEO Bob Iger downplayed the strike’s effect on the business, other major companies like Sony, AMC Entertainment, and Warner Bros. Discovery have experienced significant negative impacts. Sony slashed its movie unit’s profit forecast due to production delays and promotional constraints. Additionally, the delay and rescheduling of blockbuster movies like ‘Kraven the Hunter’ and the next ‘Spider-Verse’ film have added to the company’s challenges. Furthermore, AMC faces collateral damage, with shares falling over 10% following the strike. The company plans to sell more shares through a secondary offering due to the short-term impacts of the strikes. On a positive note, AMC hopes for a boost from Taylor Swift and Beyoncé’s concert films in the fourth quarter. Conversely, Warner Bros. Discovery reported that the strikes have weighed on its studios’ performance, especially impacting TV content production and delivery, resulting in a decline in TV revenues and potential extended financial impacts into 2024.