Podcast Summary
Writers' Strike: Parallels with the British Coal Miners' Strike: The ongoing writers' strike may not yield the desired results due to structural changes in the TV industry, including the rise of platforms like TikTok and technological disruptions.
The current landscape of scripted television is facing structural decline due to the rise of platforms like TikTok and technological disruptions. This was a topic discussed in the podcast episode, drawing parallels between the ongoing writers' strike and the 1984-85 British coal miners' strike. While the writers are fighting for higher pay and protections, the podcast's host, Scott Galloway, believes that the Writers Guild of America may come out of the strike weakened, similar to what happened to the National Union of Mine Workers in the UK. He argues that the differences between the two situations are significant, and the writers' strike may not yield the desired results. On a different note, the podcast also had sponsor messages from Mercury, a financial services platform for startups, and Smartwater, an alkaline water brand. Mercury offers startups a more efficient banking experience, while Smartwater aims to help individuals perform at their best by providing hydration with added benefits.
Writers' strike and declining industries: The writers' strike highlights the challenges faced by industries undergoing structural decline due to changing consumer preferences and competition. Solidarity among workers is crucial in navigating these disruptions.
The writers' strike, though divisive within the union, has garnered widespread support from actors and the public due to their perceived undercompensation. This situation mirrors the British mining industry's decline, where changing consumer preferences and competition led to the collapse of coal production despite abundant resources. Similarly, the entertainment industry is experiencing a shift towards reality TV and live sports, reducing the demand for scripted content and writers. Ultimately, the solidarity among workers in both industries, despite the differences, is crucial in facing structural decline and the disruption brought by evolving consumer preferences and competition.
Media Landscape Shift: Streaming Services and Social Media Gain Prominence: Traditional TV networks face declining profitability due to rise of streaming services and social media platforms, while unscripted content on YouTube and TikTok threatens scripted TV. Netflix, the leading streaming service, faces challenges with subscriber growth and password sharing.
The media landscape is undergoing a significant shift, with streaming services and social media platforms, particularly TikTok, gaining prominence over traditional television. This is evident in the increasing number of sporting events being streamed and the substantial investments being made by tech giants like Apple. Moreover, the popularity of unscripted content on platforms like YouTube and TikTok, especially among younger demographics, is posing a serious threat to scripted TV. Traditional TV networks, such as Comcast, Disney, Warner Brothers Discovery, and Paramount, are struggling to maintain their profitability in this new landscape, with many reporting significant losses and cutting costs. Netflix, the only streaming service currently increasing its margin, is facing challenges with subscriber growth and password sharing. Overall, the future of media consumption is moving towards shorter, unscripted content produced by amateurs, rather than long-form, professionally produced content.
The Decline of the Writing Industry: Streaming Services and AI: Streaming services contribute to the decline of the writing industry by offering fewer weeks of work and minimal residuals. AI integration complicates negotiations for writers.
The writing industry, much like the mining sector before it, has been facing a long-term decline. Adjusted for inflation, the median writer-producer salary has dropped by 23% over the past decade. A significant contributor to this trend is the rise of streaming services. While a traditional 22-episode broadcast program guarantees writers 30 to 40 weeks of work, a typical 10-episode streaming series only offers 20 weeks. Additionally, streamers often pay little to nothing in residuals, which used to provide a crucial source of security in the unpredictable entertainment sector. Studios have also been relying more on junior writers, reducing the number of writers per show, and limiting their ability to work on other projects. Ten years ago, one-third of writers worked under the minimum basic agreement; today, half do. The massive content investment by streamers in the past decade has led to profit margin squeezes but also a vast reservoir of shows that consumers can't seem to keep up with. Despite this, some industries, like late-night TV and downtown office spaces, are not expected to recover. Instead, young people are increasingly aspiring to be influencers, creators who earn money through ads during their content. However, the writers' union remains skeptical about the use of AI in their industry, as they believe their creativity is a uniquely human trait. Yet, negotiations have been complicated by the potential integration of AI into the writing process.
Writers' Strike Against AI Use in Content Creation: The writers' strike against AI use in content creation may not be effective, but new opportunities will arise for those who adapt to the changing landscape.
The writers' strike against studios using AI for content creation may not be effective, as AI is an inevitable part of technological innovation leading to both job losses and creations in the long run. The striking writers have valid concerns about residuals, but asking studios to abandon AI is as realistic as asking them to give up texting and air conditioning. Instead, new opportunities will arise for service providers in the streaming industry who leverage AI. The strike's outcome will depend on incentives and leverage, with studios needing to control their spending while avoiding losing market share. The writers may eventually come to terms with the changing landscape and the importance of adapting to new technologies. Ultimately, those who understand and adapt to AI will be the ones to succeed in the industry. During the strike, writers might consider exploring new tools like Notion AI to stay productive and informed. The strike and its resolution will be a lesson in the importance of adapting to technological changes and the potential for new opportunities.
