Writers and Hollywood studios reach an agreement after nearly 5 months of strikes
The shows must go on… After a drawn-out labor dispute that cost California’s economy at least $5B, the 11.5K-member Writers Guild of America said on Sunday that it had reached a tentative agreement with Hollywood studios and streamers, potentially ending one of the longest work stoppages in Tinseltown’s history. The deal, which still needs to be approved by rank-and-file membership, is a sign that the strikes that drastically upended the entertainment industry could finally be nearing an end. The deets:
For writers, the contract may be sweeter than analysts first thought possible. Picture: higher royalties from streamers as well as AI protections.
For studios and streamers, the deal allows for some lucrative productions (like late-night talk shows) to resume.
The financial toll has been steep. Hollywood workers pulled $45M from their retirement plans and analysts say studios could lose $1.6B in global ticket sales because of delayed movies.
Worker-tested, public-approved… Despite fan-favorite shows and movies being delayed, the public has remained supportive of striking entertainment workers. 72% of Americans sided with the writers (compared to 19% with studios) as labor-union approval continues to hover around highs not seen since the 1960s. The writers aren’t alone: striking autoworkers have similarly SUV-sized approval ratings. While their industries are different, workers in both have struck a chord with messaging around excessive executive pay and declining wages.
Collective bargaining’s To Be Continued… Hollywood’s labor woes aren’t over. The WGA encouraged its membership to join SAG-AFTRA picket lines today, but there’s hope the writers’ deal could serve as a contract blueprint for resolving the actors’ concerns. FYI: 150K+ striking actors are still at odds with studios over contracts, and the two sides haven’t spoken in more than two months.