Warner Bros. Discovery warned that striking SAG-AFTRA and the Writers Guild of America could cost the company up to half a billion dollars in lost profits. The note came in a filing to the U.S. Securities and Exchange Commission and highlights the broader impact the labor actions have on Hollywood revenues, production schedules, and investor expectations during the year ahead.
Barry Diller, the veteran executive who has led Paramount and Fox, warned that without resolution to the ongoing labor disputes, the entire U.S. film and television industry could face serious disruption by early fall. His comments underline how closely the industry ties current profitability to the status of negotiations and the pace of production.
The SEC filing from Warner Bros. Discovery outlines a potential negative effect on EBITDA that could range roughly from $300 million to $500 million. The company notes that this range depends on how long the labor action persists and what recovers once negotiations resume. Management cautions that precise timing is uncertain, making near-term financial outcomes hard to forecast.
Earlier reporting by the Financial Times cited the broader economic toll from the writers’ strike, estimating substantial losses to California’s economy during the four months of disruption. The industry-wide cost to the state reflects stalled productions, spillover effects on related sectors, and lost business activity in theaters, local services, and ancillary industries.
Additionally, Warner Bros. Discovery referenced the strong performance of its major franchises and notes that while some productions paused, other titles continued development. The company emphasizes that the ultimate effect will depend on the duration of the strikes and the speed with which studios and unions reach an agreement that supports resumed productions and stable revenue streams.
Overall, the conversation around the strikes centers on balancing creative labor demands with the capital needs of large studios. Analysts expect a swift resolution would help stabilize financial projections, restore production timelines, and reduce risk to upfront investments in content pipelines. As the industry navigates these negotiations, investors will watch early indicators of recovery in box office trends, streaming performance, and domestic television scheduling. The situation remains fluid, with many factors shaping the trajectory of earnings, release calendars, and long-term profitability across the sector.