{"id":49359,"date":"2023-08-16T21:01:22","date_gmt":"2023-08-17T01:01:22","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/what-the-studios-are-saying-about-the-hollywood-strike\/"},"modified":"2023-08-16T21:01:24","modified_gmt":"2023-08-17T01:01:24","slug":"what-the-studios-are-saying-about-the-hollywood-strike","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=49359","title":{"rendered":"What the Studios Are Saying About the Hollywood Strike"},"content":{"rendered":"

Major entertainment and streaming firms are scrambling to figure out ways to keep viewers entertained with Hollywood writers and actors still on strike. On earnings calls in recent weeks, publicly traded firms told investors they\u2019re saving money on for now on production, though a prolonged strike will hamper release schedules.<\/p>\n

The Alliance of Motion Picture and Television Producers provided the Writers Guild of America a counterproposal on Friday. The WGA, which has been on strike since May 2, said Friday it will send a response this week. SAG-AFTRA\u2019s national executive director and chief negotiator, Duncan Crabtree-Ireland, reacted to WGA returning to the negotiating table at a virtual press conference, according to Deadline.<\/p>\n

\n

\u201cPerhaps that is a sign for cautious optimism about the future of these agreements and hopefully an end to both strikes in the near future,\u201d Crabtree-Ireland said, according to Deadline.<\/p>\n

Here\u2019s what major publicly traded companies are telling investors about the, according to transcripts provided by Sentieo.<\/p>\n

Netflix: July 19 earnings call<\/h2>\n

During
\n Netflix\u2019s<\/span>
\n latest earnings call, co-CEO Ted Sarandos told investors that the company doesn\u2019t want a strike. Sarandos grew up in a union household, he said, so he understands the financial toll a strike puts on workers.<\/p>\n

\u201cSo, you should know that nobody here, nobody within AMPTP and I\u2019m sure nobody at SAG or nobody at the WGA took any of this lightly,\u201d he said. \u201cBut we\u2019ve got a lot of work to do. There are a handful of complicated issues. We\u2019re super committed to getting to an agreement as soon as possible, one that\u2019s equitable and one that enables the industry and everybody in it to move forward into the future.\u201d<\/p>\n

On the financial side, CFO Spencer Neuman said the strike\u2019s impact on production is leading to a \u201cwide range of outcomes for where we\u2019re going to ultimately land on cash flow this year given the ongoing strikes.\u201d<\/p>\n

\u201cThat may also create some lumpiness between 2023 and \u201924,\u201d Neuman said. \u201cSo still a substantial expected free cash flow in \u201924, but some lumpiness between the years.\u201d<\/p>\n

Comcast: July 27 earnings call<\/h2>\n

\n Comcast
\n President Michael J. Cavanagh said strikes present a challenge in the near term. He reiterated multiple times that the firm is committed to reaching a fair deal as soon as possible.<\/p>\n

\u201cBeyond that, just say it\u2019s really for all involved in the industry broadly, a prolonged work stoppage,\u201d he said. \u201cAnd the longer it goes, the worse it will be. It\u2019s, obviously, going to have a negative impact all around. \u201c<\/p>\n

He said cash flow impacts are manageable, though they will shift studio working capital out of the near term and into the future.<\/p>\n

\u201cSo probably for 2023, a little bit of lower working capital, higher free cash flow and the flip side of that in 2024,\u201d he said. \u201cAs you look at Peacock, I wouldn\u2019t point out anything in particular related to strikes and its effect in 2023 or second half of the year. Obviously, the longer the strike, the more that could have an effect as you look into 2024 and beyond, and that would be for ourselves and others, obviously. So it\u2019s a level playing field.\u201d<\/p>\n

Paramount: Aug. 7 earnings call<\/h2>\n

Paramount CEO Bob Bakish said the strikes are top of mind for the firm.<\/p>\n

\u201c<\/strong>We\u2019re saddened that as an industry, we couldn\u2019t come to an agreement that would have prevented this,\u201d he said. \u201cOur partnership with the creative community is critical to the health of our industry. So we remain hopeful for a timely resolution, and we are committed to finding a path forward.\u201d<\/p>\n

Bakish said the firm has adjusted its
\n CBS
\n fall slate. He touted the firm\u2019s sports lineup, new additions to the CBS schedule like Yellowstone and Paramount+ shows like SEAL Team.<\/p>\n

\u201cThe slate illustrates the strength of our global multi-platform asset base and strategy, and it\u2019s one of the ways we\u2019re staying nimble,\u201d he said.<\/p>\n

CFO Naveen Chopra added that the strikes had a modest impact on free cash flow.<\/p>\n

\u201c<\/strong>We anticipate continued delays in production for the duration of the strikes,\u201d Chopra said. \u201cAnd as such, we estimate free cash flow in the back half of the year will be significantly higher than previously expected.\u00a0<\/p>\n

\u201cFinancially, that means that there is opportunity to further improve the long-term trajectory of cash content spend. Now keep in mind the strikes, obviously, will create some timing shifts between how cash gets deployed in \u201923 versus 2024, but it doesn\u2019t change our commitment to improving that cash spend over a multiyear period of time.\u201d<\/p>\n

Chopra added that on Paramount+, the firm feels good about its slate.<\/p>\n

\u201cOur back-half plan does include a number of formats that are either unaffected by the strike or things that were already in the can,\u201d Chopra said. \u201cThat includes shows like Special Ops: Lioness<\/em>, which is now on the service, the next season of Billions<\/em> as well as our next Taylor Sheridan original Lawmen<\/em>. We\u2019ll continue, obviously, to get the benefit of NFL Football, the SEC and Big Ten, all three of which will be in full swing during the fall.\u201d<\/p>\n

Chopra said some Paramount+ shows originally scheduled for the fourth quarter will move into 2024 due to the strikes.<\/p>\n

\u201cBut it\u2019s really too early to sort of estimate what the impact of that will be,\u201d he said. \u201cBut we feel pretty good about our distribution plan and the slate in general.\u201d<\/p>\n

Sony: Aug. 9 earnings presentation<\/h2>\n

Hiroki Totoki, director, president, COO, and CFO at
\n Sony
\n Group, said on Aug. 9 that it is unclear when the strikes will end. The firm aims to work with the AMPTP to and producers to reach a deal as soon as possible.<\/p>\n

Walt Disney: Aug. 9 earnings call<\/h2>\n

\n Walt Disney\u2019s<\/span>
\n earnings call covered a range of topics, including those related to ESPN and the parks business. But CEO Bob Iger did address the ongoing strikes.<\/p>\n

\u201cNothing is more important to this company than its relationships with the creative community, and that includes actors, writers, animators, directors, and producers,\u201d he said. \u201cI have deep respect and appreciation for all those who are vital to the extraordinary creative engine that drives this company and our industry. And it is my fervent hope that we quickly find solutions to the issues that have kept us apart these past few months, and I am personally committed to working to achieve this result.\u201d<\/p>\n

Interim CFO Kevin Lansberry said the firm expects fiscal 2023 content spend to be $27 billion, lower than prior expectations in part due to the strike.<\/p>\n

\u201cWe now expect capital expenditures for the year to total $5 billion,\u201d he said. \u201cThis is lower than our prior guide primarily due to spending timing shifts for various projects across the enterprise.\u201d<\/p>\n

Write to Connor Smith at connor.smith@barrons.com<\/p>\n<\/p><\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Major entertainment and streaming firms are scrambling to figure out ways to keep viewers entertained with Hollywood writers and actors still on strike. On earnings calls in recent weeks, publicly traded firms told investors they\u2019re saving money on for now on production, though a prolonged strike will hamper release schedules. The Alliance of Motion Picture […]<\/p>\n","protected":false},"author":1,"featured_media":49360,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-49359","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-investing","tag-featured","post_format-post-format-video"],"yoast_head":"\nWhat the Studios Are Saying About the Hollywood Strike | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Major entertainment and streaming firms are scrambling to figure out ways to keep viewers entertained with Hollywood writers and actors still on strike.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=49359\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" 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