According to numerous news reports, the Writers Guild of America and the Alliance of Motion Picture and Television Producers have tentatively agreed on a deal that ends strikes. It still needs to be approved by the members, but it appears that this will be finished soon. It’s rumored to have been a three-year agreement.
Since May 2, 2023, the WGA has been on strike. This is probably because the topics being discussed during these negotiations were quite complex. Key topics included pay and the size of writing teams, as well as more complex concerns like the worry that writing jobs will be replaced by artificial intelligence. Another hot topic was the percentage of streaming revenue that goes to writers.
“What we have won in this contract – most particularly, everything we have gained since May 2nd – is due to the willingness of this membership to exercise its power, to demonstrate its solidarity, to walk side-by-side, to endure the pain and uncertainty of the past 146 days,” the WGA said in an email to members. “It is the leverage generated by your strike, in concert with the extraordinary support of our union siblings, that finally brought the companies back to the table to make a deal.”
This new deal only applies to the writers’ strike. The Screen Actors Guild-American Federation of Television and Radio Artists strike hasn’t ended.
We are a little surprised by how subdued the stock reaction to this news has been among media/streaming companies (WBD, PARA, ROKU, AMZN, DIS, NFLX). We believe that investors are, however, awaiting more information.
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