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Industry Insight

Strike Update: Agreement Highlights & What's Next

The Writers Guild of America (WGA) and the Alliance of Motion Picture and Television Producers (AMPTP) have reached a tentative agreement, signaling a potential end to 148 days of striking. Here is a succinct overview of the tentatively agreed upon terms, which are in effect as of September 25th, 2023, pending this week's ratification vote.

Agreement Highlights:

  • Minimums: Increases of 5%-4%-3.5% for most minimums.
  • Features: Significant updates for Made-for HBSVOD programs, and an accelerated payment schedule for flat deals.
  • Appendix A: This section covers Television initial compensation terms for various show types made for SVOD.
  • Episodic Television: A slew of updates including an increase in weekly rates for Staff Writers and Story Editors/Executive Story Editors. A new Writer-Producer tier has been introduced.
  • Development Room Compensation: Updates on weekly service payments and their applicability.
  • Script Fees: Staff Writers will receive additional script fees atop their weekly salaries.
  • Streaming: New residuals based on foreign subscriber count for global streaming services and viewership-based bonuses.
  • Pension & Health: Updates to the health fund contribution rate and the introduction of P&H Diversion.
  • Teams: Enhanced contributions to P&H for team members.
  • Artificial Intelligence: Regulations introduced for the use of AI in MBA (WGA's Basic Agreement) covered projects.

Financial Outlook:

The tentative agreement meets halfway between the WGA's initial proposal of an estimated $429 million per year value and AMPTP's proposed $86 million per year value, settling on $233 million per year.

What It Means:

The tentative agreement marks a major step towards ending the WGA strike that began months ago. The strike is officially over as of September 26th. The WGAW Board, WGAE Council, and the Negotiating Committee have all voted in favor of this new agreement, and a ratification vote is slated for October 2nd to October 9th. If the agreement is ratified, writers can officially return to work from September 25th.

However, should the agreement be rejected, the strike will resume, dangerously nearing the record for the guild’s longest-ever strike, set in 1988 at 153 days.

Industry Impact:

The entertainment industry is bracing for a talent scheduling crunch as writers return to work and the pending SAG-AFTRA strike. Industry experts predict challenges in cast availabilities, crew coordination, and securing stages and equipment as everyone attempts to kickstart their projects simultaneously. Some studio executives have shared concerns about prioritizing halted projects over new ones.

For instance, Emma Roberts had to forgo an indie project due to a pre-existing commitment to American Horror Story, which was paused mid-season due to the strike. Such scheduling conflicts will be commonplace - and difficult to prioritize.


While the tentative agreement brings hope to many in the entertainment industry, its approval is yet to be seen. Many are eagerly awaiting the results of the ratification vote. Meanwhile, eyes are also on the pending SAG-AFTRA negotiations, the outcome of which could heavily impact the industry's trajectory in the upcoming months.