Warner Bros. says strike caused $500 million in losses, had previously said it saved money

The strike by the Writers Guild of America and the Screen Actors Guild has almost brought Hollywood to a permanent standstill, with striking actors and writers demanding fair compensation for their work from film studios. Warner Bros. Discovery said in a new filing with the U.S. Securities and Exchange Commission that the ongoing strike could cost the company $300 million to $500 million.

Warner Bros. Discovery expects revenue of about $10 billion to $11 billion this year and attributes the change in its financial situation mainly to the strike. The company said in the filing that Warner Bros. Discovery (WBD) "is now assuming that the financial impact of these strikes on WBD will continue through the end of 2023. The company previously stated that the strikes would end in early September. The purpose of this update is to allow investors and analysts to make financial forecasts and decisions based on different assumptions. The company previously stated that the strikes actually saved it more than $100 million."

Warner Bros. had a triumphant summer with the live-action Barbie, which has now become the studio's biggest movie ever worldwide, with an estimated $1.34 billion in box office revenue when it hits digital platforms today. However, the strike has delayed the release date of the studio's much-anticipated Dune: Episode II from this year to March 15, 2024.

In the filing, the company said: "Warner Bros. Discovery will continue to prioritize and work with other industry leaders to find a fair resolution to the current WGA and SAG-AFTRA strikes, and will continue to value the important work of writers and actors, as well as its collaboration with editors and actors."