The protracted Hollywood writers’ strike that had gripped the industry for 148 days has reached its conclusion, as the Writers Guild of America (WGA) announced its decision to end the strike following a tentative agreement with the Alliance of Motion Picture and Television Producers (AMPTP). The strike’s resolution comes as a sigh of relief for the entertainment industry, which had grappled with halted productions and uncertainty.
On Sunday, the WGA disclosed that it had reached a tentative Minimum Basic Agreement with the AMPTP, a development hailed by union leadership as a significant triumph. The deal, a three-year contract agreement, emerged after five days of intense negotiations between the writers’ union and studio representatives last week.
Key Highlights of the Resolution
One of the focal points of the strike was the writers’ demand for streaming residuals and safeguards against the encroachment of AI in the film industry.
The WGA West and WGA East leadership voted unanimously to conclude the strike, paving the way for writers to return to work immediately. They have also recommended the agreement forged with the studios.
However, the tentative deal will require ratification by the union’s members, who will have the opportunity to vote on it from October 2 to October 9.
The WGA detailed the terms of the agreement, which explicitly prohibits the use of AI for writing or rewriting literary material and prevents studios from compelling writers to employ AI. Nevertheless, it grants writers the option to incorporate AI into their work with prior consent from the studios.
Additionally, the agreement offers writers increased compensation and introduces new minimum staffing requirements for TV writers’ rooms based on the episode count.
Under the terms of the deal, writers will receive minimum annual pay raises of 5%, 4%, and 3.5% over the course of the three-year contract, commencing with an immediate 5% raise upon ratification.
A ground-breaking aspect of the agreement is the obligation imposed on streaming platforms to provide viewership data to the WGA under a confidentiality agreement. The guild may then share this data with its members in an “aggregated form.” This marks a significant stride, addressing the writers’ concerns about the lack of transparency from streaming platforms. The agreement also includes a 50% bonus residual payment for writers if a show or film is “viewed by 20% or more of the service’s domestic subscribers in the first 90 days of release.”
Background
The strike, which began in May, garnered support from SAG-AFTRA, the actors’ guild, in mid-July. Both unions shared similar demands, including higher residual payments for work on streaming platforms and contractual safeguards concerning AI. They contended that the rise of streaming had diminished their earning potential compared to traditional television. Moreover, they feared the increasing influence of AI technology, potentially replacing their roles or utilising their likenesses without consent. The combined impact of the writers’ and actors’ strikes disrupted the production of numerous scripted TV shows and major movie projects.
The recent negotiation between the writers’ guild and studios marked the first meeting between the two parties since mid-August.
With the Hollywood writers’ strike now resolved, it remains uncertain how much longer the SAG strike will persist. The conclusion of the writers’ strike brings hope for the gradual resumption of normalcy in the entertainment industry, albeit with significant lessons learned about the importance of timely and productive negotiations.