Scriptwriters and Studios Reach New Deal After Heated Strikes

The Writers Guild of America (WGA) and the major studios have quietly settled a new contract that will keep writers on screen for four years. The agreement was announced after the WGA’s negotiating committee voted unanimously in favor of it. It is a step toward ending last year’s long strike that had halted much of Hollywood’s output. A key part of the deal protects the guild’s health plan. The plan had lost about $200 million in recent years, leaving many writers worried about medical coverage. The new contract requires studios to contribute more money to keep the plan healthy and sustainable. Studios had asked for a five‑year deal so they could predict costs better during a time of rapid change in the industry. The WGA agreed to a four‑year term, which is one year longer than usual but still shorter than the studios wanted. The Alliance of Motion Picture and Television Producers confirmed that a tentative agreement had been reached and said it hopes to build on this progress for long‑term stability.The WGA has always been a tough voice in Hollywood. In 2023, negotiations were drawn out and led to a 146‑day strike. That action encouraged the actors’ union, SAG‑AFTRA, to strike as well, stopping most film and TV production. The previous contract that ended the 2023 conflict gave writers higher royalties for streamed content and ensured AI would not take away writer credits or pay. This time, the talks moved fast. They finished almost a month before the old contract expired on May 1. The entertainment industry was already hurting from layoffs, less streaming spending and the fallout of earlier strikes. Nobody wanted another expensive standoff. The WGA’s Los Angeles office has been on strike since February, which could have stretched resources if the negotiations had taken longer. The new deal allows the guild to focus on its internal strike while keeping writers in the industry. With this agreement in place, studios will now shift their attention to negotiating with SAG‑AFTRA. Those talks had been going on for about a month starting in early February, but no resolution was reached. The actors’ union said the sessions had been “productive” when they paused to focus on the writers’ deal.