Benzinga - by Piero Cingari, Benzinga Staff Writer.
The Writers Guild of America (WGA), representing over 11,000 screenwriters, has taken a monumental step towards ending Hollywood’s crippling 146-day strike.
In a historic move, WGA members reached a tentative agreement with entertainment companies that could reshape the industry landscape.
The deal, if accepted, will bring much-needed relief to a sector reeling from production shutdowns.
The tentative deal contains a host of provisions that the Writers Guild had vigorously demanded. One notable achievement is the substantial increase in compensation for streaming content, addressing a pressing issue in today’s digital-dominated entertainment world.
Additionally, studios have conceded to minimum staffing requirements for television shows, ensuring opportunities for writers.
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As the New York Times reports, the agreement includes robust, crucial safeguards against artificial intelligence (AI) encroaching on writers’ credits and compensation. This move aligns with industry concerns and sets a precedent for protecting creators’ rights in the age of AI.
The Writers Guild’s negotiating committee emphasized that this agreement stands out as exceptional, offering substantial benefits and safeguards to writers across all segments of their membership.
However, it’s worth noting that not everyone is celebrating. The Alliance of Motion Picture and Television Producers (A.M.P.T.P.), representing studios, has given a terse response, merely acknowledging that a tentative agreement has been reached.
Hollywood Struggle Continues
The only productions set to restart quickly are those without actors, such as late-night shows and daytime talk shows.
The consequences of the strike ripple through Hollywood’s workforce, affecting more than 100,000 behind-the-scenes workers. From directors to makeup artists, these professionals face mounting financial hardships.
California alone has suffered an economic loss exceeding $5 billion due to the extended shutdown.
However, there’s a glimmer of hope on the horizon. The Writers Guild’s agreement could potentially expedite negotiations with SAG-AFTRA. Actors share similar concerns with writers, particularly regarding AI’s potential misuse in creating digital likenesses without proper compensation or approval.
Shares of major entertainment companies, including Disney Co. (NYSE:DIS), Warner Bros Discovery Inc. (NASDAQ:WBD), Paramount Global (NASDAQ:PARA) and AMC Entertainment Holdings Inc. (NYSE:AMC) have substantially declined since the start of the WGA strike in early May 2023. Netflix Inc. (NASDAQ:NFLX), instead, has managed to post gains.
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