Adidas is contemplating a significant financial blow as it considers writing off $320 million worth of Yeezy shoes following its separation from music and fashion icon Kanye West.

The sportswear giant’s decision to sever ties with West’s Yeezy brand has left a mountain of unsold merchandise, threatening to dent the company’s balance sheet.

The partnership between Adidas and Kanye West, which began in 2013, had been immensely successful, with Yeezy shoes becoming a highly sought-after fashion statement.

However, recent controversies and disagreements between West and Adidas prompted the sportswear company to distance itself from the celebrity designer.

The massive inventory of Yeezy shoes now presents a dilemma for Adidas, as it grapples with finding a solution to deal with the surplus stock. A $320 million write-off could significantly impact the company’s financial performance in the short term.

Adidas is currently exploring various options, including discounting, donating, or repurposing the unsold inventory to mitigate the financial hit.

Warner Bros Discovery, has issued a stark warning regarding the ‘real risk’ that Hollywood faces in the aftermath of the recent strikes that have taken a considerable toll on the industry’s financial health.

The strikes, which disrupted film and television production for several weeks, resulted in substantial financial losses for studios, production companies, and countless industry professionals.

Warner Bros Discovery emphasised the necessity for a resilient and adaptable approach to navigate the ongoing challenges and uncertainties facing the film and television sector.

The conglomerate stressed the importance of implementing measures to mitigate such risks in the future, which include fostering better labour relations and contingency planning to safeguard against potential disruptions.

The message underlined the need for the industry to adapt to the evolving landscape of content creation and distribution, particularly in the digital era.

This warning from Warner Bros Discovery highlights the need for the entertainment industry to recognise the ever-changing dynamics and economic challenges, and the importance of preparedness to maintain its prominent position in the global market.

We know what our words are worth at Netflix on 9/20. Photo: J.W. Hendricks

A recently ratified Writers Guild of America (WGA) contract is poised to revolutionise the landscape of Hollywood.

This monumental agreement brings forth fundamental alterations in the way the entertainment industry operates. In a nutshell, the contract redefines compensation structures, solidifying fair pay for writers and creators across various platforms.

One notable change is the integration of more equitable profit-sharing mechanisms, guaranteeing writers a more significant slice of the proverbial pie. Additionally, the contract underscores the importance of proper crediting and recognition for writers, ensuring their vital contributions are acknowledged and duly compensated.

Artificial intelligence was of course another major point of discussion with agreements outlined below stating:

“We have established regulations for the use of artificial intelligence (“AI”) on MBA-covered projects in the following ways:

• AI can’t write or rewrite literary material, and AI-generated material will not be considered source material under the MBA, meaning that AI-generated material can’t be used to undermine a writer’s credit or separated rights. 
• A writer can choose to use AI when performing writing services, if the company consents and provided that the writer follows applicable company policies, but the company can’t require the writer to use AI software (e.g., ChatGPT) when performing writing services. 
• The Company must disclose to the writer if any materials given to the writer have been generated by AI or incorporate AI-generated material.
• The WGA reserves the right to assert that exploitation of writers’ material to train AI is prohibited by MBA or other law.”

The WGA contract also takes steps to address issues of diversity and inclusion within the industry, fostering an environment that welcomes voices from all backgrounds and experiences. This shift towards a more inclusive landscape is seen as a crucial step towards rectifying historical disparities within the entertainment realm.

See a summary of the entire campaign here