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The 2023 Writers & Actors Strike in USA: An Intersection of Creativity, Pandemic Repercussions, and Artificial Intelligence

14 July, 2023 | Maria Rua Aguete

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The American film industry is facing a renewed crisis, one that is erupting from within its creative core. A little less than two decades after the infamous 2007-2008 Writers Guild of America (WGA) strike, Hollywood's creatives have once again downed pens. This time, however, the context is vastly different, with box office revenues still struggling to recover from the COVID-19 pandemic and the role of artificial intelligence (AI) in the creative process coming under intense scrutiny.

Global studio and non-studio box office USD billion

Despite the gradual return to physical theatres, box office revenues are still below pre-pandemic levels. Consumer habits, driven by convenience and learned behaviors, still lean towards streaming services which picked up new users during lockdowns. Omdia’s view is that while the box office will recover, the levels seen pre-pandemic are still a number of years away.

In the face of these challenges, a historical comparison is intriguing. The last WGA strike became an unexpected catalyst for the small screen, heralding an era of high-quality, glossy drama that not only rivalled the cinematic narrative but also pushed the boundaries of storytelling, thereby attracting a broader audience demographic.

Alongside this, the strike also saw an upswing in non-scripted content – reality shows, game shows, and talk shows became mainstays. It was, in a way, an unintended consequence of the strike that resulted in an unexpected diversity of content, leaving an indelible mark on the television industry.
Today, the core issue of contention extends beyond traditional labor grievances. It reaches into the realm of AI, a technological advancement that has slowly, but surely, been making inroads into the creative process. For many writers, the growing use of AI in screenwriting presents a double-edged sword.

On one hand, there's the fear of job replacement – an understandable concern given the efficiency with which AI can generate content. But on the other, AI also offers tremendous benefits, such as the ability to swiftly generate plot ideas, automate script formatting and contextual accuracy, create personas and test character interactions. It's not just about cost and efficiency as AI can also provide tools that enhance creativity.

Hollywood stands at a precipice: if it chooses to resist the use of AI, it might alleviate the immediate concerns of the writers, but at a potential long-term cost. Hollywood’s competitors, in all their forms, are far less beholden to their talent and will seize any opportunity to outcompete. 

While Hollywood sits in the past, could a new AI-driven dawn rise from outside Tinseltown rise without them? 
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Maria Rua Aguete
Senior Research Director, Media and Entertainment

Maria Rua Aguete leads the strategic development of the media team and manages its day-to-day operations, tracking the continuing evolution of global service providers and operators. Maria first created the team while at Screen Digest, which became part of IHS Markit. 

The team’s research on service providers is deep and extensive, leveraging long-standing relationships with operators in all of the 70+ markets covered by the group, resulting in the most comprehensive source of television and operator market intelligence in the world. 

Maria is also a regular contributor to various reports, including the European Cable Yearbook, and she has led or has been a significant contributor to many consulting projects for high-profile media and technology companies, including the market-launch and purchase plans of an emerging television group, a Latin America DTT platform for a major channel group, and a satellite pay-TV provider for a private equity group. 

She has also performed commercial due diligence on a cable TV components business for a major international bank; a competitive review and strategic analysis for a major international channel operator; a comprehensive review of investment opportunities in the European cable market for a venture capital group; and a market report and due diligence on a localization services (dubbing/subtitling) company for an investment bank. 

Maria has collected many accolades throughout a storied career, and she is one of only 11 Technology Fellows named by IHS Markit during her time at the company, an honor that recognizes her deep expertise and exceptional standing within the analyst community. 

Maria holds a first class degree in economics and business studies from Vigo University in Spain, and an MBA from Cardiff Business School in Wales. She is a regular speaker at events like IBC and Mobile World Congress.   

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