It was a drama that lasted 146 days. But finally, on September 24, 2023 the Hollywood writers reached an agreement that ended their strike against the major studios and streamers represented by the Alliance of Motion Picture and Television Producers (AMPTP).
For the Hollywood actors’ strike ended on November 9, 2023 following 120 days on the picket line.
The new three-year deal for the writers includes increased royalties, mandatory staffing for television “writing rooms,” and protections regarding the use of Artificial Intelligence. The Alliance gave ground on staffing issues, as well as new formulas for streaming residuals that would reward success more than the current model.
The Writers Guild of America (WGA) values the three-year deal at $233 million per year, and an entertainment lawyer in Hollywood calculated that the gains made by the writers sacrificed just 0.091 percent of Disney revenues, 0.214 percent of Netflix revenues, 0.108 percent of Warner Bros. revenues, and 0.148 percent of Paramount revenues.
The WGA went on strike on May 2, closing writing rooms across the industry. The strike quickly shut down late-night TV shows and stalled work on scripted television shows and films. Members of the union, which represents 11,500 writers, mobilized to form picket lines outside production houses.
Gains for writers include greater insight into how shows perform on streaming services. For example, content that is viewed by more than 20 percent of a streaming service’s U.S. subs in the first three months of release will receive a bonus of 50 percent of the fixed U.S. royalties.
In addition, a six-episode series must have at least three writer-producers. And that number will increase with more episodes. Foreign royalties will increase by 76 percent and will be based on a streaming service’s international sub base. Studios must tell writers if any materials they give them have been made by AI.
For the actors, the strike ended when on November 4, SAG-AFTRA, the Hollywood actors’ union with 160,000 members, received a “last, best, and final offer” from the major U.S. studios. After an initial objection, a few days later the negotiating committee accepted the proposal for the three-year contract valued at $1 billion. Included in the offer were: a wage increase, a new way to determine residuals for streaming programs, protection from AI (specifying consent and compensation), and an increase to the pension and health funds.
It is now hoped that the U.S. entertainment’s labor sector will find its peace and prosperity. At least for the next three years.
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