How Will the WGA Strike Affect the Advertising Industry?

Earlier this month, the Writers Guild of America – the joint effort of the Writers Guild of America, East and the Writers Guild of America West – announced a strike after it failed to reach agreement on a new contract with the Alliance of Motion Picture and Television Producers. 

Calling the issues faced by writers an “existential crisis,” the WGA said that the studios’ behavior “has created a gig economy inside a union workforce, and their immovable stance in this negotiation has betrayed a commitment to further devaluing the profession of writing.”  The AMPTP has been less vocal about the strike, but has issued its own rebuttal, saying, in part, “If writing needs to be done, writers are hired, but these proposals require the employment of writers whether they’re needed for the creative process or not.”  At this moment, the negotiating parties appear to have dramatically different positions about what a fair contract – particularly as it relates to compensation for writing services for television – should look like.  And there’s no end in sight. 

We are already feeling the impact of the strike on the entertainment industry, with film, television, and other productions being shut down and with studios putting future scripted development work on hold.  We’re also seeing the WGA flex its muscle in unexpected ways, leading to questions about whether services that are generally not covered by the WGA contract – such as writing for fiction podcasts and international writing – will continue during the strike. 

With the WGA receiving support from other unions – such as SAG-AFTRA and the DGA, which both have contracts expiring this summer – there’s no telling about the ways in which the strike may impact projects, no matter what stage of production they are in.  Moreover, if SAG-AFTRA and the DGA were to go on strike later this year when their own contracts expire, that would have additional implications as well.  For example, a DGA strike would have a significant impact on unscripted projects.

Although the strike is largely an entertainment industry dispute between film and television writers and the big studios and streamers, the strike will undoubtedly have some impact on the advertising industry.  With new developments happening every day, it’s too soon to tell what the full impact may be, but here are some initial things that advertisers and advertising agencies should start to consider.

Does the WGA strike cover advertising? 

As a general matter, no.  The WGA contract doesn’t cover writing services for advertising, so the typical work that advertising copywriters do should not be impacted.

What about branded entertainment projects? 

While the production of traditional advertising projects should not be impacted, if you’re working on the development of branded television shows, films, and other branded entertainment projects with writers who are WGA members, most likely, the development of those projects will be put on hold.  Even non-WGA members may hesitate to work on those projects, for fear that it may impact their ability to join the WGA in the future.

Should we be worried about our existing sponsorship and product placement deals? 

While some entertainment productions – where no further writing services are required – will surely continue, others will be put on hold until the strike is resolved.  If you’re expecting a marketing boost from an upcoming product placement, or if you’ve got a marketing plan that is intended to coordinate with the launch of a new television show or film, now is the time to consider whether you need to make alternate plans.  Now is also the time to take a look at your contracts to see what ongoing obligations the parties have during the strike and to consider what impact force majeure clauses may have.

It’s important to understand, however, that even projects that are past the writing stage (which is itself an issue that is fraught, when you’re dealing with script changes during production) – and even ones that are completed – may still be impacted by the strike.  With the strong support of other unions, productions may have issues completing production or getting the promotional support they need from talent.  With many members of the other unions not being willing to cross picket lines, or just simply not wanting to be seen as unsupportive, you shouldn’t count on productions being completed on time or your being always able to get the cooperation you need to engage in planned promotional efforts.

Could the picket lines impact the production of commercials? 

Some union members have been hesitant to cross picket lines.  If you’re planning a commercial production, you should avoid productions that will take place where picketing may be taking place, such as in a television studio facility or a movie studio lot.  If you do, you could end up in a situation where talent and crew don’t show up for a planned shot, for fear of being seen as not being supportive of the strike.  

Will media buys be impacted? 

This is a good time to think about what upcoming media buys you have and whether changes need to be made (and what rights you have to adjust those buys).  And, if you’re planning new buys, this is certainly the time to take the strike into account when negotiating them. 

The impact on your media buys, in the short term, is going to depend largely on where your advertising is intended to run.  If you’re planning on running on late night television, for example, many of those shows have already shut down production.  On the other hand, the production of ongoing news and sports programming should not be affected.  Many unscripted television shows should continue in production as well, though that may change.  For scripted television, the networks and streamers have inventory of new shows, so there will still be new programming for some time.  If the strike continues for many months, as it could, the landscape of new programming out there could change dramatically.