The Writers Guild of America Ratifies New Contract: What it Means for Hollywood

The Writers Guild of America (WGA) has recently ratified a new three-year contract with Hollywood studios, marking a significant milestone for writers in the industry. This article will delve into the key aspects of the agreement, highlighting the gains and protections achieved for writers, as well as the potential impact on other industry guilds.

The overwhelming majority of WGA members, 99% to be exact, voted in favor of ratifying the new deal. With 8,435 votes in favor and only 90 against it, this level of support showcases the solidarity and determination of the guild. President Meredith Stiehm emphasized that the contract includes meaningful gains and protections across all sectors of the membership.

The new agreement secured pay increases for writers over the next three years, ensuring their financial stability and recognition for their invaluable contributions. In addition, the contract includes restrictions on artificial intelligence (AI) usage, ensuring that writers retain creative control and safeguarding their role in shaping stories.

One of the notable accomplishments of the deal is the establishment of a new residual system for streaming services. This system will be based on viewership, ensuring that writers receive fair compensation for the popularity and success of their work in the digital realm.

The WGA negotiations also led to higher contribution rates for health benefits and pensions, providing writers with necessary support for their well-being and future financial security. Moreover, the guild successfully negotiated a guaranteed number of writers in writers’ rooms for television shows. This measure aims to preserve the collaborative nature of the creative process and maintain the quality of storytelling in the television industry.

With the Writers Guild of America setting a precedent, the attention now turns to the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA). SAG-AFTRA has recently begun negotiations with major studios such as Disney, Paramount, Netflix, Universal, and Warner Bros. Discovery. If the studios fail to address the needs of performers in their agreements, WGA members have pledged to show solidarity by joining SAG-AFTRA on picket lines.

SAG-AFTRA seeks to improve wages, working conditions, and health and pension benefits for its members. Additionally, this guild is striving to establish guardrails for the use of AI in future television and film productions, aligning with the concerns raised by the writers. Another significant objective of SAG-AFTRA is to attain more transparency from streaming services regarding viewership data. This information will enable fair residual payments, ensuring parity between traditional linear TV and digital platforms.

The ratification of the new contract by the Writers Guild of America represents a landmark achievement for writers in the entertainment industry. The gains and protections secured in this agreement highlight the progress made in recognizing the invaluable contributions of writers. As attention shifts to the negotiations between SAG-AFTRA and major studios, the industry eagerly awaits further developments that may shape the future of Hollywood.


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