Ted Sarandos: Netflix Is Prepared Better Than Most if Theres a Writers Strike

Netflix co-CEO Ted Sarandos said he doesn’t want to see a writer’s strike hit Hollywood, but they’re planning for the worst. And if a work stoppage does happen, he says the streamer will be prepared “better than most.”

“We respect writers and we respect the WGA and we couldn’t be here without them. We don’t want a strike. The last time there was a strike, it was devastating to the creators, it was really hard on the industry. It was painful for local economies that support productions, and it was very very bad for fans,” Sarandos said on Tuesday’s 2023 Q1 earnings interview. “So if there’s a strike, and we want to work really hard to make sure we can find a fair and equitable deal so we can avoid one.”

He continued: “But if there is one, we have a large base of upcoming shows and films from around the world, so we can probably serve our members better than most. We really don’t want this to happen, but we have to make plans for the worst, so we do have a pretty robust slate of releases to take us into a long time. But just to be clear, we’re at the table, and we’re going to try and get to an equitable solution so there is no strike.”

Unlike other studios that have been stockpiling scripts or quickly green lighting projects in the event of a strike, Netflix plans their slate out well in advance on both the film and series side such that any disruption to what Netflix is able to put out could be minimal, at least in the short term.

The issue of streaming residuals has been one of the biggest issues in the ongoing negotiations between the Writers Guild of America and the Alliance of Motion Picture and Television Producers, which represents the studios. With fewer episodes produced for streaming than have traditionally been made for broadcast and with elaborate and complex means to calculate what streamers pay writers in residual fees for their work, many writers have argued those once stable sources of income are quickly eroding.

Streaming is also a big culprit when it comes to the trend of “mini-rooms” that the guild also wants to see regulated, as well as more consistent pay for variety- or talk-show writing that is increasingly migrating to streaming and other “new media.”

The studios are at the negotiating table with the guild now ahead of a May 1 deadline to the current minimum bargaining agreement with the writers. The writers this week overwhelmingly authorized being willing to strike, should the sides be unable to reach a fair deal.

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