Warner Bros. Discovery CEO David Zaslav recently acknowledged that the striking writers in Hollywood were justified in their demands for changes in how creatives are compensated. In a profile with The New York Times, Zaslav stated that he has no regrets about the new three-year contract struck between the studios and the Writers Guild of America on Sept. 24. He admitted, “They are right about almost everything. So what if we overpay? I’ve never regretted overpaying for great talent or a great asset.” This statement comes after the studios resisted the writers’ demands for months, leading to a 148-day strike that disrupted the industry. Disney chief Bob Iger had previously dismissed the writers’ proposed changes in compensation as “unrealistic.”
As part of the new contract, writers received pay increases, minimum show staffing requirements, and protections against artificial intelligence, among other gains. However, Zaslav’s suggestion that writers might now be overpaid raises eyebrows, especially considering that the executive received $246 million in compensation in 2021. WGA board member Adam Conover pointed out that Zaslav’s compensation is about the same as what 10,000 writers are collectively asking to be paid. Additionally, combining the contracts of the Writers Guild, SAG-AFTRA, and Directors Guild results in a total cost closer to the high end of the $450 million to $600 million yearly cost estimate, as detailed by Moody’s Investor Service.
The Times profile highlighted that the strikes by writers and actors ultimately saved Warner Bros. Discovery considerable money. However, Zaslav has been slow in giving the green light to new projects that could strengthen the company’s financial position, despite implementing $3 billion in cost-cutting measures. The company still experienced a $400 million loss in the third quarter. Despite these challenges, the board’s confidence in Zaslav remains firm.
This profile comes at a time when Warner Bros. is facing criticism for its handling of projects. The company announced shelving and then un-shelving of the movie “Coyote Vs. Acme,” a live-action and animation hybrid. This decision follows similar actions taken with last year’s “Batgirl” and “Scoob! Holiday Haunt,” which were both canceled for tax write-offs. After facing outcry from the creative community, Warner Bros. has reversed course and plans to shop the film to other studios and streamers. However, Texas Rep. Joaquin Castro is now calling for an investigation into the studio for “predatory and anti-competitive” practices.
In light of all these developments, Zaslav’s acknowledgment of the validity of the writers’ demands and the ongoing challenges faced by Warner Bros. Discovery raise questions about the company’s future trajectory and its ability to navigate the rapidly evolving landscape of the entertainment industry.
