Once it was confirmed that the writers’ strike in Hollywood was overwith a victory for the writers, the Studios already knew that they were going to have to compromise with the actors as well.. That’s why the next Monday, October 2, they will meet with the union SAG-AFTRA to reach an agreement that ends all forceful measures.
“SAG-AFTRA and AMPTP will resume negotiations for a new contract on Monday, October 2. Several executives from AMPTP member companies will attend,” the syndicate announced in a statement. In the meetings with the scriptwriters, the presence of the CEOs of large companies (Netflix, Disney, NBCUniversal, Warner Bros. Discovery) was key to unblocking the conflict.
The Talks between both sectors have remained frozen since last July 14 when the strike was declared, but the arrival of an agreement with the scriptwriters renewed hopes of being able to unblock the conflict. In addition to the paralysis of countless major productions, the strike also impacts the box office due to the lack of promotion of the films by the stars, an absence that was especially noticeable on the red carpets of international film festivals.
The actors’ claims expanded in recent days when the leader of SAG-AFTRA negotiations, Duncan Crabtree Ireland, and the union’s president, Fran Drescher, the remembered protagonist of “The Nanny”, declared that they voted in favor of a strike by video game companies if an agreement was not reached. “After five rounds of negotiations, it has become very clear that the video game companies are not willing to engage meaningfully on the critical issues: compensation undermined by inflation, unregulated use of Artificial Intelligence and security,” Crabtree Ireland said regarding this new focus of conflict.
The keys to the agreement between screenwriters and Hollywood studios
In basic terms, the writers union got a annual salary increase of 5% in the first year, 4% in the second and 3.5% in the third. Initially they had asked for 6%, 5% and 5%, respectively.
One of the major points in dispute was the artificial intelligence regulation. In that sense, the WGA achieved that AI will not be able to write or rewrite literary material and that any text generated by AI will not be considered “source material”; that a screenwriter can choose to use AI but cannot be forced to use it; that studios must notify if writers are provided with material that was or contains text written by AI and that The WGA reserves the right to dispute that exploitation of writers’ material to train AI is prohibited.
As for a bonus on residuals based on product success, the WGA found that series and movies made for streaming that have been watched by 20% or more of domestic subscribers during the first 90 days obtain a bonus equal to 50% of the residuals. Views will be calculated as domestic hours played of a season or movie divided by its duration. The example given by the union indicates that a project would receive a bonus of US$9,031 for a half-hour episode, US$16,415 for a one-hour episode or US$40,500 if it is a project with more than US$30 million budget. This structure will come into effect from January 1, 2024.
To this, it must also be added that They obtained a residual payment based on subscriptions from foreign countries to the United States. If they have more than 20 million subscribers abroad, they will pay residuals of 47% of the base payment; if there are up to 45 million it will be 60%; up to 75 million, 75% and more than 75 million, 90%.
All this will be done based on data that the platforms will provide under confidentiality agreement and that the union may share only overall form. It is the first time that studios and platforms agree to provide their viewer data to a third party.
Finally, at the point of size of writers’ tables or officesthe union had requested in May a minimum of six writers and an additional one for every two episodes with a maximum of 12. The agreement includes a minimum of three writers producers for pre-assembly offices of a series that lasts 20 weeks or more, with a formula to calculate writers per additional season based on the number of episodes. Furthermore, these offices will guarantee hiring for at least 10 consecutive weeks and 20 weeks after approval to begin filming a production.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
