Hollywood writers, studios reach tentative deal to end strike

LOS ANGELES

Striking writers whose industrial action has paralyzed Hollywood said Sunday they had reached an "exceptional" deal with studios that could see them go back to work.

The apparent breakthrough will raise hopes that striking actors can also reach terms with studios to end a months-long impasse that has seen film and TV production largely halted, costing the California economy billions of dollars.

"We have reached a tentative agreement on a new 2023 [minimum basic agreement], which is to say an agreement in principle on all deal points, subject to drafting final contract language," said a letter the Writers Guild of America sent to members.

"We can say, with great pride, that this deal is exceptional - with meaningful gains and protections for writers in every sector of the membership."

The letter, which AFP has seen, gave no details. It said language was being ironed out and that the final say on whether to accept what was on offer rested with the membership.

"To be clear, no one is to return to work until specifically authorized to by the Guild. We are still on strike until then. But we are, as of today, suspending WGA picketing," it said.

A terse joint statement from the WGA and the AMPTPT, the umbrella group representing studios and streamers confirmed an agreement.

Actors' union SAG-AFTRA congratulated the WGA, praising the "incredible strength, resiliency and solidarity on the picket lines."

"While we look forward to reviewing the WGA and AMPTP's tentative agreement, we remain committed to achieving the necessary terms for our members," it said.

Negotiations between studios and writers had been moribund for weeks until a new sense of urgency appeared to have been injected into the process in the last few days, with the heads of Netflix, Disney, Universal and Warner Bros Discovery personally attending the talks.

Among their demands, writers say their salaries have not kept up with inflation, and that the rise of streaming has diminished the "residuals" they earn when a show they work on becomes a smash hit.

Studios had offered greater transparency in streaming audience numbers, while stopping short of offering to revise the way residual payments are calculated.

Writers have also demanded curbs on the use of AI, which they fear could be used to partially replace them in generating future films or show scripts, and therefore further undercut their pay.