Writers and actors are striking at the same time for the first time in 63 years in Hollywood, putting an end to productions across the industry and costing the California economy billions of dollars.
Movie studios have had to adjust their film schedules as a result of the actors' strike because celebrities aren't allowed on red carpets or talk shows to help generate buzz.
Due to the fact that the movie's stars would not be able to promote the film during the strike, the Warner Bros. studio announced last month that it would postpone the November release of a big-budget sequel to "Dune" until March.
In the past, Warner Bros. Discovery offered financial guidance for the year 2023, assuming that the strikes would be resolved by the beginning of September. For the entire year, the company now anticipates adjusted earnings of $10.5 billion to $11 billion, a decrease of approximately $300 million to $500 million.
Max Willens, a senior analyst with Insider Intelligence, stated, "WBD's updated guidance is likely directly attributable to its decision to push ‘Dune 2’ back to 2024... it's likely WBD was expecting the sci-fi sequel to at least match the box office performance of its predecessor."
Movie delays are also hurting theater chains like AMC Entertainment, Cineplex, and Cinemark, which are still trying to recover from the COVID-19 pandemic. "Dune," which was scheduled for release in late 2023, was one of the most anticipated films.
Additionally, Warner Bros. stated that CEO David Zaslav would be attending an investor conference on September 6 and anticipating a discussion of the impact of the ongoing strikes among other topics.
Due to the strong performance of the "Barbie" movie and strike-related factors, the studio is now raising full-year free cash flow expectations to at least $5 billion. The third quarter alone is expected to exceed $1.7 billion.
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