Ahead of the upcoming contract talks with the Alliance of Motion Picture and Television Producers (AMPTP), the Writer’s Guild of America (WGA) released a post regarding Wall Street criticism of the media industry on its contract negotiation website – designed initially to provide WGA members with information about the labor talks. The post declared that Hollywood “remains highly profitable” despite Wall Street’s claims to the opposite and a vow to ensure that writers will continue to receive their fair share of that profit in contract negotiations with studios.

“Gloomy stories about business model uncertainty, company layoffs, and the industry’s impending downturn are both standard refrains during union contract negotiations and the predictable result of Wall Street’s narrow focus on stock price and short-term profits,” said the WGA. “Such coverage distracts from a fundamental truth: the content created for this industry has tremendous value, and the companies have demonstrated time and time again that they can and will capture that value.”

The WGA acknowledged the considerable decrease in industry profits in 2022, citing the Warner Bros. Discovery merger – which the Writer’s Guild condemned as “ill-advised” – and the plateauing of the “unexpected boom in pandemic-fueled subscriber sign-ups,” which bolstered Wall Street expectations and stock prices.

The Guild pointed to the rising streaming subscription numbers and prices and the pivot towards advertising on streaming services as proof of Hollywood’s continued adherence to industry basics.

The State of the Industry report also pointed to the combined annual operating profits of Netflix, Paramount, Warner Bros. Comcast, Fox, and Disney to argue the Guild’s case, which reached $28-30 billion annually between 2017 and 2021.

The WGA concluded: “While Wall Street criticizes the media companies… the fundamental truth remains: the content writers create has tremendous value. The companies have demonstrated time and time again that they can and will capture that value, but writers and the WGA must work to ensure that success is shared.”