End of the strike in Hollywood? Writers' guild reaches agreement with studio bosses

It seems as if the light at the end of the tunnel is within reach. At least for Hollywood's writers' guild, which has been on strike since the beginning of May. This follows weeks of failed negotiations with the major studios over better working conditions.

Now the strike could soon be over. This is according to an email that all union members received this morning. In it, the leadership of the Writers Guild of America (WGA) announces that a tentative agreement has finally been reached with Hollywood studio bosses:

No details of the agreement are yet known. The WGA will only reveal them once the exact wording has been finalised. The authors will then vote on whether to accept the agreement. If the new agreement is accepted, the strike can be lifted immediately. This could be the case as early as next Tuesday, according to the WGA leadership in the email.

Successful marathon negotiations after marathon strike

As early as last Wednesday, industry media outlets such as Deadline reported that talks had resumed. Previously, there had been months of radio silence between the union and Hollywood studio bosses. The main point of contention was the exploding growth of streaming services in the last decade. According to the Writers Guild, this means that previously functioning remuneration packages for writers no longer work. This is because when films or series are repeated on linear television, authors receive a so-called residual fee for them. These reruns, and therefore the residual royalties, are increasingly disappearing in the age of streaming.

In addition, the demand for series formats on streaming platforms has changed. Whereas a season used to usually comprise 20 episodes or more, Netflix and the like are tending towards seasons with ten or even fewer episodes. As writers are paid per episode rather than per season, this leads to a lower income.

Finally, the guild called for new standards to be set for the use of artificial intelligence in the face of its rapid development. There are fears that chatbots such as Chat GPT and Co. will soon become competitors.

What's next in Hollywood?

The imminent end of the writers' strike is at least bringing some sense of normality back to Hollywood. At least scripts for films and series, but also for TV formats such as the extremely popular late-night shows in the USA, which rely on texts written by authors on a daily basis, are allowed to be written again.

However, the studio bosses' worry lines have not yet completely disappeared. After all, another important union is also on strike: the actors' and actresses' union (SAG). Until this also ends, Hollywood will remain at a standstill.

Despite this, the agreement between the writers and Hollywood's leading studios can be seen as a positive sign. Although it is not known which party first sought the resumption of talks - only that California Governor Gavin Newsom is said to have played an important role in the mediation. But the feared attrition tactics with which Hollywood wanted to bleed its authorship financially and thus force it back to the negotiating table apparently did not materialise.

In addition, the new collective labour agreement could act as a kind of blueprint for the actors, as both unions have similar concerns. Not only are actors and actresses suffering from the loss of residual fees from reruns, which are becoming less and less in times of growing streaming services. Actors also fear the use of artificial intelligence: AI is already being used to digitally copy or rejuvenate the faces of stars and sometimes even put them on the bodies of other people. With the rapid development of deep fakes, voice generators and other AI tools, SAG fears that its members will be completely replaced. It is therefore calling for adequate regulation and fair compensation when film and series productions use the digital likeness of their stars.

An end to the work stoppage in Hollywood is therefore still pending. But hopes that the crisis will soon be over are on the upswing.