Warner Bros Discovery CEO reveals $100mn savings due to Hollywood strikes

Warner Bros Discovery David Zaslav has said that the ongoing double strike has resulted in  savings of approximately $100 million for the studio, reported Variety. This revelation was made during the latest earnings call for the company, where Zaslav highlighted the cost-cutting benefits of production shutdowns across his studio.

By not compensating actors and writers for their work, the company seems to be capitalising on the opportunity to retain the money for itself.

The Writers Guild of America initiated the strike about three months ago on July 2, raising concerns about fair payment for their labour in the industry. Last month, on July 14, SAG-AFTRA joined the strike, making it a double strike. 

Also Read: Explained | Is Warner Bros facing an existential crisis? Struggles and uncertainty plague the studio

Variety quoted Zaslav as saying, “We’re in the business of storytelling. Our goal is to tell great stories, stories with the power to entertain and, when we’re at our best, inspire with stories that come to life on screens big and small. We cannot do any of that without the entirety of the creative community, the great creative community. Without the writers, directors, editors, producers, actors, the whole below-the-line crew. Our job is to enable and empower them to do their best work."

He added, "We’re hopeful that all sides will get back to the negotiating room soon and that these strikes get resolved in a way that the writers and actors feel they are fairly compensated and their efforts and contributions are fully valued. Our job is to enable and empower them to do their best work. We’re hopeful that all sides will get back to the negotiating room soon and that these strikes get resolved in a way that the writers and actors feel they are fairly compensated and their efforts and contributions are fully valued.”

Zaslav's emphasis on the $100 million in savings, while also claiming support for writers and actors, is unlikely to earn him any favours. Since assuming the role of CEO of WBD, the entity formed after the Warner Bros and Discovery merger, he has faced considerable unpopularity. Criticism has mounted due to his controversial decision to significantly reduce the content library on HBO Max, apparently as a means of tax write-offs. 

This move resulted in a staggering loss of nearly $25 billion in the company's market capitalisation. Notably, several projects, including the $90 million film Batgirl and Scoob! Holiday Haunt, were nearing completion or in the advanced stages of post-production but were abruptly cancelled. The cancellation of Batgirl was unprecendented and met with widespread disappointment.

The movie was featuring acclaimed directors Adil El Arbi and Bilall Fallah, had undeniable popular appeal as a comic-book superhero story, and a star-studded cast including Leslie Grace, Michael Keaton, Brendan Fraser, and JK Simmons.

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