Studios and Writers Reached a Tentative Deal – What Happens Now?

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The Writers Guild of America (WGA) has finally hammered out a tentative deal with the big entertainment players, putting an end to what felt like an eternity of labor disputes in Hollywood. It’s a step in the right direction, but let’s not pop the champagne just yet.

While this agreement might provide a glimmer of hope for an industry that’s been plunged into chaos by not one, but two simultaneous strikes, we’re far from Hollywood’s triumphant return to business as usual. There are still significant hurdles to clear before that happens.

First off, we’ve got to wait for the guild’s board and members to give the nod to this deal. Then there’s the elephant in the room: SAG-AFTRA, the actors’ union, is out there on their own strike mission. Until they sort out their own grievances, television shows and movies remain on pause.

So, yes, it’s a step forward, but don’t start lining up at the box office just yet. Hollywood’s got some more drama to unfold before the show can really go on.


What’s in the WGA Agreement?

WGA has managed to wrangle significant concessions from the studios after 146-day strike. These concessions include royalty payments for streaming content and airtight assurances that AI won’t step on the toes of writers when it comes to credits and compensation.

AI was a major bone of contention that drove writers to picket lines, and it’s refreshing to see that it was the last hurdle to clear in negotiations. The studios finally came up with a few paragraphs to add to the new contract to address the Guild’s concerns about AI and those dusty old scripts the studios have in their vaults. Negotiating the wording of this section probably took longer than it should have, but hey, better late than never.

The enthusiasm gap between the two sides is almost palpable. The guild’s negotiating committee is practically shouting from the rooftops about this deal, telling their 11,000 members that it’s nothing short of a triumph. They’re calling it “exceptional” and emphasizing that it brings home some hefty gains and crucial protections for writers in every nook and cranny of their membership.

But what about the studios? Well, their silence on the matter is deafening. Netflix or Disney are not saying a word, which is either a masterclass in poker faces or a hint that they’re not exactly thrilled with the outcome. One can’t help but wonder if they’re licking their wounds after what seems like a pretty resounding win for the WGA.

What Happens to Actors’ Strike?

The writers’ agreement won’t have a direct impact on the ongoing strike led by SAG-AFTRA, representing more than 150,000 actors. These television and movie actors have been striking independently since July 14, pressing for demands that go beyond what the Writers’ Guild is asking for. One of their most prominent requests, earmarking 2 percent of streaming show revenue, has been swiftly dismissed by the studios. Unfortunately, there are no negotiations scheduled between the two parties at the moment.


Nevertheless, the writers’ deal could serve as a potential model for addressing concerns shared by actors. Both groups share a concern about setting firm boundaries on the use of AI. Actors are rightfully worried that this technology could threaten their livelihoods and enable the creation of digital replicas of their likenesses without compensation or consent.

In a show of solidarity, the WGA has actively encouraged its members to stand alongside actors on their picket lines when they resume their strike on Tuesday.



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