The WGA Strike is About a Lot More Than Just Money

Lon Harris
Lon Harris is a contributor to dot.LA. His work has also appeared on ScreenJunkies, RottenTomatoes and Inside Streaming.
The WGA Strike is About a Lot More Than Just Money
Evan Xie

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Thursday is Day 3 of the Writers Guild of America (WGA) strike, and so far, neither side seems particularly ready to budge.

Studios and media companies did what they could to put on a brave face and go about business as usual. On his company’s Q1 earnings call on Thursday, Paramount Global CEO Bob Bakish suggested that the company has stored up sufficient “content in the can,” and assured investors that streaming subscribers and movie fans “won’t notice anything for a while.” HBO, meanwhile, announced that production on Season 2 of “House of the Dragon” – which kicked off on April 11 at the UK’s Leavesden Studios – will move forward during the strike.


While writers and even movie nerd websites jumped on the news that the US entertainment industry have collectively lost more than $10 billion in value since the start of the strike, others were quick to point out that it was part of a general stock market dip that was likely responding to multiple economic variables.

It’s unclear how long the industry will be able to maintain this facade. As many WGA members pointed out on social media – including HBO veteran and “The Wire” creator David Simon – writing work doesn’t end when the scripts are turned in, but continues throughout production and even post-production on a major TV series like “House of the Dragon.”

As with that strike 15 years ago, the negotiations between the WGA and the Alliance of Motion Picture and Television Producers (AMPTP) revolve around much more than just higher wages. The slow death of linear and cable TV and the rise of streaming services have fundamentally altered just about every aspect of the entertainment business, and these strikes are as much about how writers go about their work and how they fit into the larger TV landscape as they are specifics of residual percentage points. WGA leaders told Variety this week that the real sticking point is not wages, but studios refusing to accept “structural change” to their hiring and employment practices.

TV showrunners express concern about streaming's "gig economy" hiring practices

To that end, the Los Angeles Times published a roundtable discussion this week among a group of TV showrunners, which shed some light about the changes brought about by streaming and their concerns for the future. There was general agreement among the group that new players like Amazon, Netflix, and Apple have a different vision for producing entertainment content than the Hollywood studios of the prior generation, taking a less artistic and more data-driven approach.

“Scrubs” and “Ted Lasso” veteran Bill Lawrence notes “they’re so streamlined, these companies, into corporate entities, where I feel like in old times they were at least inhabited by, if not artists, art lovers.” These concerns have a practical side as well, beyond just a general sense of disinterest about churning out a quality product.

“Swarm” showrunner Janine Nabers notes that the streamers’ “gig economy” approach to hiring writers – bringing them in for just a few weeks to knock out scripts for abbreviated TV seasons – threatens the entire future of the industry. Without secure full-time jobs that allow up-and-coming writers to learn the ropes, experience what it’s like to be on set, and personally shepard a show through the creative process, how are we to train the showrunners of tomorrow?

Lawrence agrees, noting that he was personally mentored by iconic “Family Ties” creator Gary Goldberg. Without that experience, would he have had the savvy and knowhow to produce “Ted Lasso” for Apple in the first place, and turn it into one of TV’s most acclaimed shows?

[On Thursday, the AMPTP responded specifically to this “gig economy” criticism, noting that writers enjoy guaranteed employment terms and benefits that help to distinguish their jobs from typical “gig” jobs like food delivery or ride-sharing.]

Streaming’s data-driven approach clashes with traditional creative decision-making

A recent Deadline interview with “Ghosted” director Dexter Fletcher also highlights the chasm between how the conventional entertainment industry approached creative decision-making vs. a newer entrant like Apple. (The film is a romantic action-comedy starring Chris Evans and Ana de Armas; it hit Apple TV+ in April and has become one of the streamer’s most popular originals.)

According to Fletcher, he pitched a creative opening sequence for the film, inspired by the 1978 Goldie Hawn-Chevy Chase film “Foul Play.” While it’s easy to imagine a classic archetypal Hollywood producer (think Al Pacino in Tarantino’s “Once Upon a Time in Hollywood”) closing their eyes, envisioning the scene, and agreeing to the budget over martinis at Musso & Frank… Apple executives said no based purely on data.

“They said you can’t do it because if it [the opening sequence] goes on and something doesn’t happen in the first 30 seconds, we know the data shows that people will just turn off,” Fletcher told Deadline. “I don’t want that, so I make the compromise.”

The assembly line approach to creating content raises more questions about the viability of AI replacing screenwriters

This strikes at the fundamental sea change we’ve seen in the industry over the past few decades, going from leadership that demanded profits but still viewed films as fundamentally customized, bespoke products to more of a scale-focused, factory-and-assembly line paradigm. Naturally, this is where the new push for using AI to replace writers enters the picture.

Despite lengthy and passionate threads from investors and enthusiasts, it seems increasingly unlikely that software like ChatGPT is going to entirely replace screenwriters any time soon. A viral tweet from conservative commentator Ben Shaprio, apparently intended to demonstrate ChatGPT’s ability to write a coherent TV scene, had the exact opposite effect, highlighting the software’s inability to compose a coherent, even mildly amusing sitcom joke.

But the goal, at least short-term, might not be to have AI take over for Shonda Rhimes. If you’re a tech company thinking about producing media as simply another assembly line, the idea could be to replace just some workers on the line with robots, while keeping other human staffers around.

WGA Negotiating Committee member Adam Conover – the host of TLC’s “Adam Ruins Everything” – explicitly voiced these fears to Deadline this week. “I don’t think you’ll ever truly be able to replace the work of a writer but I don’t put it past these companies to try and cook up some cockamamie scheme where they have an output text and hire writers to rewrite it or something like that,” he said. “I think the public will hate it. I think it’d be a financial failure, but I think they might try and they could hurt a lot of writers by doing so.”

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LA’s Data Center Supply Crunch

🔦 Spotlight

Happy Friday Los Angeles!

The Los Angeles data center market is experiencing a significant supply crunch, ranking 12th in growth among top markets since 2020 with only 265 megawatts of colocation inventory (data centers where businesses rent space to store their computing hardware and servers). Despite this, demand is surging, driven by AI, cloud, and hyperscaler needs, with AI accounting for 20% of new data center demand nationally. This scarcity is creating a highly competitive environment, with vacancy rates at a record low 3% and asking rents rising 13-37% year-over-year. For Los Angeles, this presents both challenges and opportunities in the big picture. The city's strategic position as a global entertainment hub and its connectivity to international markets through subsea cables make it an attractive location for data centers. However, the limited inventory and rising costs could potentially hinder growth and innovation in the tech sector. To maintain its competitive edge, Los Angeles will need to address these constraints through new developments, such as GI Partners' 16 MW addition at One Wilshire, and by focusing on high-connectivity, high-power capacity submarkets. The city's tech community should prepare for a landscape of increased competition for quality data center space, higher costs, and the need for innovative solutions to meet growing demand, particularly in AI and cloud services. While Los Angeles faces a challenging data center supply crunch, its strategic advantages and ongoing developments offer a promising path forward.


🤝 Venture Deals

LA Companies

  • Daisy, a one-year-old startup that designs and installs smart home and office technology systems, raised a $7M Series B co-led by Goldcrest and Bungalow, with previous investors Bullish and Burst Capital also stepping up. The company has raised a total of $13.3 million. - learn more

LA Venture Funds


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    🌐Decentralizing Data & Vacations: Sony's Web3 Leap and Sensible Weather's KOA Partnership

    🔦 Spotlight

    Happy Long Weekend Los Angeles!

    Sony Group is making a significant push into the blockchain and Web3 space, leveraging its Sony Pictures and Sony Music divisions along with a new global incubator. The company has developed the Soneium blockchain through Sony Block Solutions Labs, a joint venture aimed at accelerating Web3 innovation. Sony is launching the "Soneium Minato" public testnet and a developer incubation program called "Soneium Spark" to foster ecosystem growth and adoption. The initiative includes strategic partnerships with Web3 companies such as Astar Network, Circle, and Optimism. Sony aims to create a fan community centered on creators and connect diverse values through Soneium, with the ultimate goal of integrating Web3 services into people's daily lives. While the company acknowledges the challenges faced by Web3, including limited user adoption and the need for mainstream use cases, it remains committed to decentralizing the concentrated power of the current internet landscape.

    In completely unrelated and more digestible news Sensible Weather, a leading weather protection provider that we’ve featured many times, has partnered with Kampgrounds of America (KOA) to offer Weather Guarantees at over 450 KOA Campgrounds across the United States. This collaboration allows campers to purchase weather protection for their outdoor experiences, providing peace of mind and potential reimbursements of up to 100% of their nightly rate if weather conditions exceed predefined parameters. The partnership comes at an opportune time, as camping has seen a significant increase in popularity, with active campers growing by 68% over the past decade. If you are looking to do some camping this fall make sure you look into Sensible Weather protections to ensure that unpredictable weather won't dampen (nailed it) your camping experience.


    🤝 Venture Deals

    LA Companies

    • Space and Time, a blockchain data warehouse developer, raised a $20M Series A led by Framework Ventures. - learn more
    • Miris, a provider of spatial content streaming solutions, raised a $26M Seed Round led by IAG Capital Partners. - learn more

    LA Venture Funds

    • Fika Ventures led a $4.55M Seed Round for Revenew, a San Francisco startup that aims to help digital platforms and marketplaces manage their payments and optimize financial operations. - learn more
    • Bonfire Ventures participated in a $25M Series A for Supio, an AI platform for personal injury law firms. - learn more
    • Amplify LA participated in a $2M Seed Round for Pryzm, a startup that provides tools and data to help businesses navigate government contracting more efficiently. - learn more

      ✨ Featured Event ✨

      LA TECH CEO SUMMIT

      LA’s tech leadership is set to reunite after a long break! This two day summit will focus on building strong connections, sharing insights, and fortifying the local tech community.

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      Personality Assessments Improving Workplace Dynamics

      Misunderstandings can have significant and sometimes severe impacts, far beyond the hilarious cake pictured above. Many organizations are increasingly using personality assessments to improve team dynamics and productivity. Tests like the Enneagram, Myers-Briggs Type Indicator (MBTI), and DISC assessment are valuable tools for developing existing teams in addition to hiring new employees. These assessments provide insights into team members' motivations, communication styles, and work preferences, helping colleagues understand each other better. By highlighting the different personalities within a team, these tests can enhance communication, resolve conflicts, and optimize task assignments based on individual strengths. As companies aim for greater efficiency and collaboration, the Enneagram, MBTI, and DISC assessments are becoming essential for transforming established teams into more effective and cohesive units.


      Image Source: iEQ9

      Enneagram

      The Enneagram test is a sophisticated personality assessment that categorizes individuals into nine distinct personality types, each defined by unique motivations, fears,and behavioral patterns. This holistic approach enhances team dynamics in a business setting by fostering self-awareness, improving communication, and facilitating conflict resolution among team members. By understanding different personality types, teams can optimize their composition, tailor professional development, and create a more empathetic and collaborative environment. This framework not only helps leaders adapt their styles to better support diverse team members but also promotes inclusivity and effective collaboration, ultimately leading to improved team performance, productivity, and retention.

      Resources:iEQ9. We recommend getting an Enneagram coach to get the most out of the results.

      Key Features: Focus on core motivations. Accounts for personality shifts under stress or growth. Offers practical, actionable guidance for personal growth. Uses a dynamic, adaptive questioning approach. Claims 95% accuracy rate through advanced techniques.


      Image Source: DiSC Profile

      DiSC (Dominance, Influence, Steadiness, and Conscientiousness)

      The DiSC assessment is a widely used behavioral analysis tool that categorizes individuals into four primary personality types: Dominance, Influence, Steadiness, and Conscientiousness. For businesses, DiSC provides valuable insights into employees' communication styles, work preferences, and motivations. By understanding these behavioral tendencies, teams can improve collaboration, reduce conflicts, and enhance overall productivity. Implementing DiSC in a business setting can lead to more effective leadership, tailored communication strategies, and optimized task allocation based on individual strengths.

      Resources:DiSC Profile.

      Key Features: Designed specifically for workplace applications. Focuses on observable behaviors rather than psychological traits. Widely researched and validated over 40+ years. Provides practical strategies for improving interactions.


      Image Source: The Myers-Briggs Company

      The Myers-Briggs Type Indicator (MBTI)

      The Myers-Briggs Type Indicator (MBTI) is a widely used personality assessment tool that categorizes individuals into 16 distinct personality types based on four dichotomies: Extraversion/Introversion, Sensing/Intuition, Thinking/Feeling, and Judging/Perceiving. For businesses, the MBTI provides valuable insights into employees' communication styles, decision-making processes, and work preferences.This helps promote a more productive workplace, and enables employees to become involved in more meaningful ways, all while leveraging everyone’s unique strengths.

      Resources:The Myers-Briggs Company.

      Key Features: Focuses on preferences rather than traits. Focuses on how people perceive and judge information. Widely used in business and career counseling


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