What happened
The factions locked in a bitter labor battle in Hollywood don't look any closer to agreement, and that's hardly good news for content producers and broadcasters. Among these is TV mainstay AMC Networks(NASDAQ: AMCX), which saw its share price erode more than 1% on Monday. That was a worse performance than the essentially flat trajectory of the S&P 500 index today.
So what
As of only a few days ago, it seemed as if at least some performers were ready to go before the cameras again, in apparent defiance of the strike. Drew Barrymore and Bill Maher both said that they would resume production of their respective talk shows. And Jennifer Hudson's talk show had its premiere pushed forward.
Those individuals were hit with a backlash that was intense at times. This came from striking talent, the people who support the protestors, and other figures in organized labor. Perhaps as a result, both Barrymore and Maher reversed their decisions -- the former on Sunday, and the latter today.
Both moves bolster the position of the two striking entertainment labor organizations, the Writers Guild of America (WGA) and SAG-AFTRA, which covers actors. Meanwhile, on Monday, the WGA confirmed that negotiations between it and the TV and film producers will resume on Wednesday.
Now what
Popular sentiment is not on the producers' side, and talent seems to be even more unified on the issues than before. Given that, the producers are likely to come out of any successful negotiations weaker than they had expected when they planted their flag at the beginning of this labor action.
In that case, AMC Networks, which is a small operator compared to the more prominent Hollywood studios, might have a tough time adjusting to the new conditions.
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