Discovery expects it could lose up to $500 million in profits due to the ongoing SAG-AFTRA strike, according to a report to the US Securities and Exchange Commission (SEC).Former executive director of Paramount and 20th Century Fox film studios Barry Diller previously said that the film industry in the United States will face “absolute collapse” if the strikes of the writers’ union and the Hollywood actors’ union do not end before September 1.
“The company expects that the financial impact of the strikes on Warner Bros. Discovery will continue through the end of 2023… Adjusted EBITDA will have a negative impact of approximately $300 million to $500 million,”, says the report.
The company noted that its management “hopes” that the strikes will end, despite the impossibility of predicting when exactly this will happen. The Screen Actors Guild went on strike after failing to reach an agreement with the Producers Alliance to improve working conditions. As the union reported, actors and employees of media companies such as Amazon, Disney, Fox, Netflix, Paramount, Sony, Universal, and Warner Bros. should take part in strikes and pickets across the country, among others. Famous actresses such as Jennifer Lawrence and Meryl Streep expressed their support for the strike. In August, the union reported that more than five thousand SAG-AFTRA members, as well as members of the US Writers Guild (WGA), went on strike at Universal Studios in California.