You know what’s really on most people’s minds in the VFX industry these days? It’s that burning question: “When will this writer’s strike finally end?”
The writer’s strike started in May 2023 It is the largest interruption to American television and film production since the COVID-19 pandemic in 2020.
Unlike the 2008 strike , this one was kind of expected by movie studios.Studios had pile up projects and rushed shooting before the strike.prepared before the work really started drying up.
Now, here’s where it gets interesting. The actual impact of the writers strike hasn’t hit the industry full force just yet. So, you might be wondering, why are some studios already facing a lack of projects? And why are there so many reports of layoffs, hiring freezes, and even pay cuts going around?
Writers Strike Quick Recap
Before we going into deep here is a quick Explanations of Writers’ strike,
So, Every 3 years, the Writers Guild of America negotiate come with agreement with the Alliance of Motion Picture and Television Producers (AMPTP)
Sometimes, that agreement they come up with just isn’t enough for the writers. So, when they feel like they’re not getting a fair deal, they decide to take matters into their own hands and go on strike.
And guess what? This isn’t the first time they’ve done it. In fact, this year’s strike marks the sixth time the WGA has gone on strike.
If you take a closer look at the history, you’ll notice that these strikes tend to happen whenever the writers need to adapt to the shifting landscape of the huge movie industry. It’s like their way of saying, “Hey, we need better terms and conditions to keep up with all the changes happening around us!”
1953: predecessor of the WGA, included the first Residuals for reuse of made for television products, with payments for up to five reruns.
1960 : The strike ensured that writers would get five percent of their net income as residual payments from television-airing movies released before 1960.
1981: A 96-day strike results in writers a share of producer revenues from the fast-growing pay-TV and home video Markets.
1988: A fight over residual payments for TV shows broadcast in foreign countries
2007–08 : A 100-day strike ends with a new contract revenue generated when their movies, television shows and other creative works are distributed on the internet.
2023: Restrictions for AI generated content and residuals from streaming platform
3.The Ripple Effect
T he Writers strike is a delayed effect for the Vfx industry, so they had months to prepare before the work really started drying up. Some studios started to pick up other than tv, movies, such as advertising.
Those impacted were late night talk show hosts, soaps and current pitching of new films or tv but those are several months from having impacts on our work.
Some movies and Tv series are being delayed with some being over a tear from initial release dates Any slowdowns at the moment are not directly related to this strike and any projects with a finished script or currently shooting can continue as long as no changes to the script happen.
Its is evident that the writer strike has little impact what’s currently happening in the Vfx industry
4. Vfx Layoffs
We went through a crazy boom the last year/year and a half with crazy hiring and people who would never have gotten a job before landing foreign gigs.LinkedIn feed was flooded with messages about all these new hires.
The real reason is the slowdown after the pandemic boom.The pendulum is just swinging back towards the middle.
And the affected studios are vendors /Studios who Over-staffed after the post covid boom. Writers strike and Global economy just added fuel to the fire.
It’s difficult to see using the “writers strike” as an excuse to lay off staff and pause pay rises.It seems like the industry is heading into a tough time again after the pandemic rollercoaster.
5. Unstable Nature of Visual Effects
Well, one major factor is the project-based nature of the industry. VFX studios are typically hired for specific projects, and once those projects are completed, there’s no guarantee of continuous work. This constant need to secure new projects and clients makes the industry vulnerable to fluctuations in demand, leading to periods of high activity followed by sudden silence.
Outsourcing and Global Competition: The VFX industry faces intense global competition, with studios around the world vying for projects. This competition is further intensified by the outsourcing of VFX work to countries with lower labor costs
Underbidding: The VFX industry operates within a highly competitive market. Studios are constantly vying for projects, bidding against one another to secure contracts. This intense competition often leads to cost pressures, with studios being forced to provide high-quality work within tight budgets.Clients frequently demand exceptional visual effects while seeking to minimize costs, leaving VFX studios in a challenging position
Technological Advancements: The VFX industry is heavily reliant on cutting-edge technology and software. Advancements in technology often require constant learning and upgrading of skills to remain competitive. Failure to keep up with technological advancements can render certain skills obsolete.
Short Production Timelines: The VFX industry often faces tight deadlines due to the time constraints imposed by film and television production schedules. This can create a high-pressure environment where VFX studios and professionals must deliver complex VFX
6.Conclusion
The strike will most likely end early July/August. But at this point the damage is already done. The advent of the Ai tools is also a huge wakeup call. Things are about to massively change over the next decade.
