Hollywood Studios Resume Talks With Writers to End Monthslong Labor Dispute

Negotiations between striking television and movie writers and major studios have resumed, with signs of progress on certain issues, giving the entertainment industry a glimmer of hope amid the monthslong labor dispute.

Last week, the Alliance of Motion Picture and Television Producers, which represents major content providers including Warner Bros., Disney, Netflix, Amazon and others, submitted a new proposal that the Writers Guild of America said it is reviewing and will respond to this week.

The proposal from the AMPTP is the first major movement between the two sides since the WGA went on strike on May 2. The Screen Actors Guild joined writers on the picket lines last month, and the strikes have ground Hollywood to a halt. 

The latest proposal from the studios addresses some concerns of the WGA, including its desire for a requirement that television shows be staffed with a minimum number of writers, people close to the discussions said. Staffing requirements have previously been a nonstarter for the AMPTP, which viewed any such rule as a hiring quota at odds with the creative process.

The AMPTP didn’t publicly release details of its proposal, and it is unclear if it will satisfy the WGA. The writer’s union has accused production companies of reducing the role of writers in the making of television shows by ordering fewer episodes and allowing fewer writers to stay with a show through the postproduction process.

The new AMPTP proposal also addresses the use of artificial intelligence in film and TV production, which has been another sticking point, the people close to the discussions said. There is concern among writers and actors that generative-AI tools could eliminate jobs and result in poor content.

The AMPTP has proposed guidelines regarding the use of AI but the WGA and Screen Actors Guild have felt they aren’t strong enough. 

If a deal with the WGA is reached, the AMPTP will turn its attention to actors. The dual strike, the first since 1960, has divided Hollywood and had a dramatic effect on the Los Angeles economy. All production has been shut down, meaning that everyone who works on scripted content, from makeup artists to lighting experts, is out of work.

Dining hot spots that are usually full of executives, agents and actors are now often half full. Instead of making deals and content, writers and actors are picketing in front of studios every day and calling out CEOs over executive compensation and greed.

Conversely, some studio chiefs have privately grumbled that the entertainment industry is struggling as it tries to pivot away from the traditional movie and television business to embrace streaming, which has turned into a financial sinkhole for several of the industry’s big players.

Last month, Disney Chief Executive Bob Iger made waves during a CNBC interview in which he said some of the creative community’s demands weren’t realistic, given the state of the industry. Disney, Warner Bros. Discovery

There are other issues to be settled between the studios and writers, including increases in residuals, which are the royalties writers receive for television shows and movies. The AMPTP has expressed a willingness to increase royalties, particularly from streaming services.

The AMPTP’s recent deal with the Directors Guild of America could provide a road map to resolving the residual issue. Under terms of that pact, directors received an increase of more than 20% in royalties from streaming services, much of it coming from a 76% increase in residuals from the international operations of streaming services.

A WGA spokesman didn’t respond to a request for comment. Last week, the WGA said it would refrain from providing comments on talks “until there is something of significance to report, or unless management uses the media or industry surrogates to try to influence the narrative.”

Separately, on Monday, the Screen Actors Guild walked back parts of its policy of handing out strike exemptions to certain productions.

The actors’ union has so far given exceptions to more than 100 shows and movies that it had deemed to be “truly independent”—or not backed by any of the big studios—and that had agreed to the union’s proposed contract terms. That meant that actors who are SAG members could work on these productions, even those that used scripts written by WGA members.

This policy chafed some writers, who argued that it undermined the strikes by creating a pipeline of content that could eventually end up being distributed by major studios and streaming services.

Under the new policy, SAG will no longer give exemptions to productions that use WGA labor and are made in the U.S.

“We have been advised by the WGA that this modification will assist them in executing their strike strategy, and we believe it does not undermine the utility and effectiveness of ours,” SAG wrote in a memo posted to the union’s website Monday. “It is a win-win change.”

Write to Joe Flint at [email protected] and Robbie Whelan at [email protected]