Hollywood Strike Nears Conclusion After Writers Reach Tentative Deal with Studios: Reports

The Hollywood strike of the Writers Guild of America (WGA) and SAG-AFTRA may end soon after 146 days of picketing.

According to several reports, the striking unions and major studios have reached a tentative deal that, according to WGA, was exceptional due to acceptable guarantees for writers in every sector of its union.

Although picketing has been suspended as of Sunday (September 24), WGA said the strike was still in force until its members ratified and approved the deal. This meant that union members were still directed not to return to work until authorized explicitly by WGA.

Dotting the I in AI

One of the main points the WGA - and in extension, SAG-AFTRA - has been fighting for revolved around the use of generative artificial intelligence (AI) in content production.

Other details of the contract are yet to be released, including matters surrounding streaming residuals and staffing levels for productions, among others.

Late August and early September were a low point in Hollywood after negotiations broke down after the striking unions turned down the modified offer the Alliance of Motion Picture and Television Producers (AMPTP) made regarding critical issues like compensation, minimum staffing, residual payments, and curbs on AI.

Other Complications

The situation was also exacerbated when Drew Barrymore attempted to restart her show but ended up in failure after receiving heavy criticism from the striking unions.

Another complication producers have to deal with is the alternative means that some entities outside Hollywood are doing to cut out the middle man, particularly in the distribution process of films.

It was during the time of the strikes that Angel Studios released the box office dark horse "Sound of Freedom" using crowdfunding support and word-of-mouth promotion, and that Taylor Swift made the decision to directly deal with movie distributors in releasing the documentary of her Eras Tour after gaining the fiat of SAG-AFTRA.

Is it the End of the Strike Nigh?

Four key AMPTP executives - Disney's Bob Iger, NBCUniversal's Donna Langley, and Warner Bros. Discovery's Ted Sarandos and David Zaslav - recently returned to the negotiating table for a three-day attempt to solve the striking unions' plight.

While WGA has high confidence in its tentative deal, which would result in the return of writers to work, producers, studios, and even video game firms must deal with a separate SAG-AFTRA issue regarding likeness rights.

In addition, even after all parties have settled their scores, production in Hollywood would struggle to pick up the pace in the next few months, resulting in delays in multiple shows and movies.

The AMPTP has yet to comment on the WGA deal, Engadget reported.

Warner Bros., Paramount Stocks Rise after News of WGA Deal

As a result of the tentative deal with WGA, the stocks of both Paramount and Warner Bros. Discovery climbed on Monday (September 25). According to Business Insider, the two firms are the biggest gainers, with sticks increasing by 1.5% and 1.44%, respectively.

The shares of other media giants such as Disney (0.5%), AMC Entertainment (0.6%), and Netflix (0.5%) are also on the rise.