Media stocks took a hit on Thursday as negotiations between the union representing film and television actors and the studios collapsed, indicating that the Hollywood actors strike is far from over.
The Alliance of Motion Picture and Television Producers (AMPTP) announced on Wednesday night that talks with SAG-AFTRA had been suspended following the union’s presentation of its latest proposal. The AMPTP represents companies such as Netflix, Walt Disney, Warner Bros. Discovery, Paramount, Comcast, and Amazon.com.
In a statement, AMPTP stated, “After meaningful conversations, it is clear that the gap between AMPTP and SAG-AFTRA is too great, and conversations are no longer moving us in a productive direction.”
According to AMPTP, SAG-AFTRA’s offer included a viewership bonus that would cost over $800 million annually. AMPTP deemed this to be an “untenable economic burden.” On the other hand, SAG-AFTRA accused AMPTP of exaggerating the cost of its proposal by 60% and employing “bully tactics.”
The collapse of talks between the union and studios dealt a blow to media stocks, with companies involved in film and TV production being hit the hardest. Paramount Global shares (PARA) dropped 3.4%, Warner Bros. Discovery shares (WBD) fell 5.8%, Walt Disney stock (DIS) closed down 0.6%, Netflix stock (NFLX) fell 1.3%, and Comcast stock (CMCSA) fell 0.8%.
The differing tones of AMPTP and SAG-AFTRA reflect the long road ahead in resolving the ongoing Hollywood strikes, indicating further challenges for media stocks.