Warner Bros. Discovery Says It Will Take $300 Million-$500 Million Hit in 2023 Earnings Due to Dual WGA/SAG-AFTRA Strikes

After 146 days on the picket line, the Writers Guild of America (WGA) has struck a tentative deal with the Alliance of Motion Picture and Television Producers (AMPTP) to end the writers’ strike.

Jennifer Maas TV Business Writer Max fans who don’t relish the idea of coughing up $9.99 per month more to access the Warner Bros. Discovery-owned streamer’s upcoming live sports tier might not realize that they’ve been making out like bandits with seemingly “free” sports content on other platforms for years, according to WBD global streaming chief JB Perrette.

The WGA is heading back to the bargaining table with the CEOs of Netflix, Disney, Universal, and Warner Bros Discovery on Friday.

Matt Donnelly Senior Film Writer The biceps and bro love will flow freely this December, as a new sports drama starring Zac Efron and Jeremy Allen White has been given the greenlight to conduct publicity from striking union SAG-AFTRA. “The Iron Claw,” about the ill-fated American pro wrestling family the Von Erichs, has received an interim agreement from the actors guild – meaning its stars are clear to promote the film around the world before it sees a wide release this holiday season.

Jennifer Maas TV Business Writer Warner Bros. Discovery is giving DC Studios a primary production hub at its U.K.-based TV and film studio Warner Bros. Studios Leavesden, the home of HBO’s “House of the Dragon,” amid a sprawling plan to expand the location by more than 50% capacity and 10 sound stages.

Warner Bros. Discovery Germany boss Hannes Heyelmann has become the latest to exit from Gerhard Zeiler’s international team.

Warner Bros. Discovery CFO Gunnar Wiedenfels echoed recent sentiments from Netflix and other major TV and film producers, saying the industry must resolve the ongoing strikes and “get back to work.”

Todd Spangler NY Digital Editor The two Hollywood strikes that have ground TV and film productions to a standstill are bad for business — and Warner Bros. Discovery is working diligently to resolve them as quickly as possible, according to CFO Gunnar Wiedenfels. “It’s an unfortunate situation… We have to get back to work,” Wiedenfels said, speaking Thursday at the Bank of America Media, Communications and Entertainment Conference.

A bill that wouldmake striking workers in California eligible to receive unemployment benefits was approved on Wednesday by a 4-1 vote of the state Senate’sLabor, Public Employment and Retirement Committee. Senate Bill 799, which has already been passed by the state Assembly, now goes to a vote of the full Senate. If approved there, it will be up to Governor Gavin Newsom to either sign it into law or veto it. Last year, he vetoed 169 bills while signing nearly 1,000.

EXCLUSIVE: Fran Drescher is less concerned with meeting of several showrunners with WGA leadership this week and more concerned with studios and streamers getting back to the bargaining table to make a fair deal.

The Herb Alpert Foundation has donated $250,000 to the Entertainment Community Fund to aid idled film and TV industry workers during the ongoing Writers Guild and SAG-AFTRA strikes. A matching donation by an anonymous donor brings the total gift to $500,000.

When it comes to Harry Potter and Fantastic Beasts franchise filmmaker David Yates returning to the Max TV series, he tells Deadline, “Never say never.”

A bill that would provide unemployment insurance to striking workers in California passed the state Assembly on Monday and now is headed to the Senate Labor Committee and then to the Senate floor. If passed there, Senate Bill 799 would go to Gov. Gavin Newsom for his signature.

Drew Barrymore is opening up about returning to her daytime talk show amid the WGA and SAG-AFTRA strikes. Earlier this year, The Drew Barrymore Show host walked away from her hosting duties at MTV Movie & TV Awards in support of the writers.

The Beverly Hills Temple of the Arts at the Saban Theatre, the largest arts and entertainment synagogue in the U.S., is offering complimentary seating to striking members of the Writers Guild and SAG-AFTRA and their immediate families for its High Holy Day Services on Rosh Hashanah (September 15 and 16) and Yom Kippur (September 24 and 25). Tickets for non-Temple members for both services normally cost $500 each.

This is Day 129 of the WGA strike and Day 56 of the SAG-AFTRA strike.

The Writers Guild and SAG-AFTRA will rally on Thursday at Amazon Studio in Culver City to highlight their push a bill that would provide unemployment insurance to striking workers in California. Striking writers and actors in New York and New Jersey are already eligible to receive unemployment benefits after 14 days on the picket line, but not in California.

Todd Spangler NY Digital Editor Roku will cut more than 300 staffers — laying off 10% of its workforce — as the streaming-platform company continues its battle to control costs. In addition, Roku will remove certain licensed and owned content from its platform as part of a “strategic review of its content portfolio,” resulting in an impairment charge of up to $65 million in the current quarter, the company disclosed in an SEC filing Wednesday. Other cost-cutting measures Roku outlined are consolidating office space and reducing outside services expenses.

The financial impact of ongoing actors and writers strikes as a number on it now as Warner Bros. Discovery said today it’s looking at a hit of $300 million to $500 million in adjusted EBTITDA (earnings before interest, taxes, depreciation and amortization) for 2023.

Chuck Parker, national executive director of the Art Directors Guild, IATSE Local 800, said that “it has become frighteningly apparent” that below-the-line workers are “bearing the brunt” of the ongoing strikes by actors and writers. He is reminding his members that help is available for those struggling to maintain their union health coverage and to make ends meet.