What Movie Theaters Need to Know About The Hollywood Strikes

This month, we’re covering the ongoing strikes in Hollywood. We’ll explore how they started, where they are now, and what they could demand of cinema operators.

At the very heart of the moviegoing experience are films, especially new films. Movie theaters thrive on fresh releases like Barbenheimer, Haunted Mansion, and Teenage Mutant Ninja Turtles. But there’s been a hitch: strikes. Back in May, the Writers Guild of America (WGA) shook up the film and TV world by going on strike when renegotiations were set to begin in June. The crux of the issue is simple: writers want better compensation and protection given the major technological shifts in the entertainment industry. The WGA says writers are losing out, especially with the rise of streaming platforms. According to a report from the WGA, only a third of TV writers worked for the Minimum Basic Agreement ten years ago.

The Minimum Basic Agreement ensures that writers receive a minimum wage for their work. Now, half of writers work for the Minimum Basic Agreement, which includes seasoned writers who would have previously worked for higher wages given their experience. The WGA said that in short, “while series budgets have soared over the past decade, median writer-producer pay has fallen.” Additionally, while the Minimum Basic Agreement ensures writers receive residuals for broadcast TV, its safety net doesn’t cover streaming work. Writers who work for streaming platforms have to negotiate their pay directly with big streaming companies; the strikes, however, aren’t just about money. There’s another burgeoning concern: artificial intelligence.

In early July, actors joined writers to voice their concerns — a move the entertainment industry hasn’t seen since 1960. Like the WGA, the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) is concerned about residuals — the money actors get from reruns. Because streaming follows a different model from traditional television, the debate has turned to how residuals should be tied to how many people watch a show streamed online. But studios aren’t currently willing to reveal data about viewership. Meanwhile, a new shadow has fallen on the stage: artificial intelligence. Tools like ChatGPT are raising concerns that AI models might replace writers, leaving them to wonder about the future of their work. For actors, AI blurs the line between creators and their creations. Who’s in charge when a character comes to life through lines of code?

The Alliance of Motion Picture and Television Producers has tried to find common ground by offering to pay writers more. But after an unfruitful meeting in early August between the WGA and AMPTP, it became clear that finding a middle path would be challenging. As the debate plays out on the stage of contracts and negotiations, the enigma of AI is a looming question. In this complicated dance of money talks and tech whispers, creativity and fair pay are hanging in the balance. The industry is having to craft a new chapter in its evolving story.

The consequences that might follow this evolving story cannot be ignored. Late-night talk shows and sketch comedies powered by writers have gone dark until further notice. Even the prestigious Emmy Awards, a hallmark of recognition, are postponed and setting a trend for other award shows. Renowned film festivals, like Venice, Telluride, and Toronto, might go quiet with actors unable to shine a spotlight on their films. And beyond the glitz, everyday businesses intertwined with the entertainment world, from local eateries to fancy hotels, are also bracing for a challenging moment ahead.

Although the WGA responded to the AMPTP’s counterproposal on Tuesday, August 15th, it’s still unclear just how long the impact of the strikes will last. Some theater owners have expressed sympathy to the strikes but claimed that their stake in the fight is minimal because the problem weighs heavier on television than it does film. And while the strikes shouldn’t pose dire consequences for movie theaters if each party comes to a consensus by September, the smooth flow of movie premieres has already been thrown out of step. At least 49 films have been affected by the strikes thus far, including films that were scheduled to premiere through the end of this year. Kraven the Hunter, for example, was originally scheduled to debut in January and then, subsequently, in October of this year. Now the film will have its theatrical release in April of 2024. Similarly, the Zendaya-led film, Challengers, was originally scheduled to premiere this fall and eventually postponed until spring 2024.

With this stalemate stretching past Labor Day, the impact has slowed the flow of new content for movie theaters into next year, which isn’t ideal, considering that some theaters are still bouncing back from the pandemic. Aziz Ansari was set to make his directorial debut with the film, Good Fortune, but was then forced to cancel filming before the film was suspended indefinitely. Spider-Man: Beyond the Spiderverse, which was set to release in early 2024, has now also been suspended indefinitely, meaning that it may not make it to the big screen until 2025.

Even films that appear too far out to be affected have felt the impact. All three sequels of the Avatar franchise, for example, have been pushed out to December 2025, 2029, and 2031 respectively. The lack of fresh theatrical releases could also disincentivize moviegoing as consumers flock to streaming services that have generated and shored up enough content to rely on during this sparse time. With no big movie stars and no flashy signs to draw crowds, exhibitors will have to get creative and make new efforts to drive curiosity and get moviegoers through their doors. What exactly are the best ways to drive moviegoers through your theater’s doors should the strikes persist?

1. Immersive Experiences: Given how quickly IMAX has recovered from the pandemic, it’s clear that audiences are willing to pay up for more immersive and luxury experiences. Does your theater offer them? Well, now is the time to really market them!
2. Interactive Movie Nights: What if your theater doesn’t offer megaplex level immersive experiences? All good. Turn movie-watching into an interactive experience. Provide trivia, contests, and games related to the film being screened, encouraging audience participation.
3. Interactive Installations: Here’s another way to substitute interaction for immersion. Set up interactive installations or photo booths related to the film’s themes, allowing patrons to engage and take memorable photos that they’ll always associate with your theater.
4. Themed Food and Drink Menus: Audiences don’t just go to the movies just for a movie. They go for great food and drinks too. Create special menus inspired by the films being screened. If you’re showing a pirate-themed movie, offer a “Pirate Platter” with themed cocktails and mocktails.
5. Collaborations with Other Businesses: Partner with local restaurants, cafes, or bookstores to cross-promote and offer special discounts to patrons.
6. Themed Movie Marathons: Host movie marathons centered around specific themes, genres, or franchises. And be sure to cater to each of your biggest audience segments. Run a Superhero Marathon featuring superhero movies and a Harry Potter Weekend.
7. Cinephile Events: A paucity of new titles doesn’t have to keep your auditoriums empty. Cater to those who love new and old films most. You could dedicate a series of screenings to a renowned director’s works. Organize workshops, panel discussions, or lectures on film history, cinematography, screenwriting, or other aspects of filmmaking. This can attract film enthusiasts who are eager to learn about how specific films were made or filmmaking, in general.
8. Promotions: tried and true, promotions are certain to drive more audiences to your theater. They’re also a great way to make sure people keep coming back so that when new titles are released your theater is the one they remember to go to.

Even as theater companies brace for impact, there’s a silver lining: the hit will not be as hard as the pandemic’s. The memory of theaters closing and an uncertain industry reminds us that those who bring films to audiences have weathered worse storms. They have faced sparse release calendars and come through on the other side. The industry’s survival story is etched in its very being. With an unyielding spirit, exhibitors can ready themselves to navigate these uncertain waters knowing that this chapter, too, will bear the mark of unwavering perseverance.