Strike in Hollywood: Agreement in principle between screenwriters and studios, the strike is over

After nearly five months of fighting, the strike is (practically) over in Hollywood. The writers and the industry managed to come to an agreement. “We have reached an agreement in principle on a new (minimum basic agreement) 2023, i.e. an agreement in principle on all points of the agreement, subject to the final wording of the contract,” says the letter the Hollywood Screenwriters Union (WGA) sent to its members. “We can say, with great pride, that this agreement is exceptional – with significant gains and protections for screenwriters in all sectors of the members’ activity,” said the WGA.

Thousands of film and television writers put down their pens at the beginning of May to demand better pay, better rewards for creating hit shows and protection from artificial intelligence. They have been picketing companies like Netflix and Disney for months and, joined by striking actors in mid-July, have paralyzed the entertainment industry.

Actors’ strike continues

Negotiations remained stalled for weeks until recently, with executives from Netflix, Disney, Universal and Warner Bros. Discovery personally participating in the talks in recent days. Among their demands, the writers claim that their salaries have not kept up with inflation. They also want to be able to earn much more when one of their films or series is a hit on a streaming platform, instead of receiving a lump sum payment, which is generally quite low, regardless of the popularity of the program.

The WGA strike is much longer than that of the screenwriters in 2007-2008, which lasted 100 days and cost the Californian economy $2.1 billion. At the beginning of September, the Financial Times reported a Milken Institute study estimating the cost of Hollywood’s current shutdown at $5 billion. Even if the deal with the writers is finalized, the actors’ strike will continue.

Their union, SAG-AFTRA, the actors’ guild, which has 160,000 members, has not spoken to employers since mid-July. But the two unions share many similar demands, and the trade press believes that an agreement with the WGA could help pave the way for a resolution of the actors’ strike.

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