Negotiations Underway to End Writers Guild of America Strike: Agreement Expected Soon

Writers and Producers Nearing Agreement to End Strike

After meeting face to face on Wednesday, writers and producers are close to reaching an agreement to end the Writers Guild of America strike, according to sources familiar with the negotiations.

The two sides are optimistic about finalizing the deal on Thursday, but there is a possibility that the strike could continue until the end of the year if an agreement is not reached.

On Wednesday evening, the WGA and the Alliance of Motion Picture and Television Producers released a joint statement announcing their bargaining meeting and plans to meet again on Thursday.

The strike, which has been ongoing for over 100 days, has halted the production of TV shows and movies in Hollywood. Actors also joined the picket line in July, causing disruptions to the industry. Notable shows and films affected include “Stranger Things” on Netflix, Disney’s projects, and Marvel’s “Blade” and Paramount’s “Evil.”

Earlier this week, the writers’ union confirmed their intention to resume negotiations with the studios.

This represents the closest the two sides have come to resolving the strike since it began on May 2, with over 11,000 film and TV writers participating. The writers argue that their compensation does not reflect the revenue generated in the streaming era.

In addition to better compensation, the WGA is advocating for new regulations that would require studios to hire a specific number of writers for a designated period for TV shows. The writers also seek compensation throughout the entire production process, including preproduction, production, and postproduction. Currently, writers often have to provide revisions or create new content without receiving payment.

In late August, the AMPTP publicly presented their latest proposal to the WGA, which did not alleviate tensions between the two groups.

The strikes have had a significant impact on media companies as they struggle to make streaming profitable and bring audiences back to theaters.

Warner Bros. Discovery, the owner of a TV and film studio and the largest portfolio of pay-TV networks, recently adjusted its earnings expectations due to the strikes. The company now anticipates a negative impact on its adjusted earnings before interest, taxes, depreciation, and amortization, ranging from $300 million to $500 million. This adjustment puts the company’s full-year range at $10.5 billion to $11 billion.

During an investors’ conference, Zaslav, CEO of Warner Bros. Discovery, emphasized the need to resolve the strikes and get people back to work. He stated, “We really have to focus as an industry on trying to get this resolved in a way that’s fair.”

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