According to Zhongtong Finance, the striking Hollywood screenwriters have reached a new preliminary labor agreement with film companies such as Walt Disney (DIS.US) and Netflix (NFLX.US), resolving one of the two strikes that have caused the suspension of film and television production. The Writers Guild of America, representing over 11,500 Hollywood screenwriters, announced on Sunday that it has reached an agreement with the Alliance of Motion Picture and Television Producers, the negotiating organization for the film companies. If approved by union members, the agreement will end the strike that began on May 2nd.
This three-year interim agreement is still pending completion of contract language and recommendations from the guild's board of directors and council, which could be available as early as Tuesday. Members will then vote on the agreement. The strike will continue until this process is completed. The Writers Guild of America said in a statement, &#34;We can say with great pride that this agreement is special - a gain and protection that is meaningful to writers across the industry.&#34;
This is the first strike by American writers since 2007, as they seek higher compensation from streaming services, which have reshaped the production and compensation methods in the television industry. The Screen Actors Guild also joined their ranks in July due to similar concerns.
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Details of the agreement will not be released until a few days later, but insiders have previously stated that the writers have made concessions on some key issues, including salary increases. One insider said that these film companies have agreed to hire a certain number of writers for their television programs, and this number will increase with the number of episodes each season. The two sides have also established a framework for streaming popular shows, with writers receiving bonuses. They also seem to have reached an agreement on the use of artificial intelligence, as writers are concerned about the threat it poses to job opportunities.
Due to the strike, the production of hundreds of films and TV shows has been halted, affecting not only writers and actors, but also directors, crew members, and industries such as catering and real estate. With reduced income, talent agencies have laid off employees, and film companies have suspended deals with major producers to cut costs. Award ceremonies have been postponed, and film festivals have been held without celebrities. The strike has delayed the return of the fall TV season, and many films scheduled for release this year have been postponed to 2024.
Prior to the strike, film companies and writers were not close to reaching an agreement, and for several months thereafter, there were no negotiations between them. During this period, thousands of union members protested outside the film companies' offices from New York to Los Angeles. While the economic benefits of streaming services remain the main concern of industry associations, the threat of artificial intelligence is also receiving increasing attention.
After actors joined the strike in late July and early August, executives from major media companies became more actively involved in the dispute. In August, film companies presented a new proposal that addressed many of the writers' concerns, but not all of them.
The negotiations between the two parties broke down again after several weeks.
The negotiations in September were unexpected. The two sides have not had formal discussions yet - at least not formal discussions. Many executives from film companies are debating whether to communicate with the actors. However, the pressure to reach an agreement has increased. Film companies are concerned that not being able to produce new shows in a few months will have an impact. Many writers are urging union leaders to reach an agreement so that everyone can go back to work.
People working in the entertainment industry, whether writers or actors, have started leaving Los Angeles due to the lack of progress. Prominent writers have requested meetings with union leaders to discuss the status of the negotiations. Several talk shows expressed their intention to return, but the plans were canceled under pressure from the union.
When the latest negotiations began, the four most powerful executives in the entertainment industry - Ted Sarandos, CEO of Netflix, Bob Iger, CEO of Disney, David Zaslav, CEO of Warner Bros. Discovery, and Donna Langley, Chief Content Officer of NBC Universal - joined their labor negotiations.
Although the Writers Guild of America may reopen soon, the return to production still depends on reaching an agreement with the striking actors. The striking actors have been picketing across the country, forcing productions that are trying to resume to shut down. This is the first simultaneous strike by writers and actors in over 60 years. In June of this year, the Directors Guild of America reached a new agreement with film companies.

Hollywood screenwriters have reached a temporary agreement to end the strike.

Hollywood screenwriters reach a "tentative" agreement with companies like Disney, ending a months-long strike.