Warner Bros CEO, David Zaslav, Says Studios "Overpaid" to End Writer's Strike ($700M Deal)

This article was written with the help of A.I. software.*

David Zaslav is heckled during the 2023 writer negotiations.Photo byOlafimihan Oshin via thehill.com

The Writers Guild of America (WGA) recently settled with Hollywood movie studios, ending the 148-day writer's strike. The WGA deal is estimated to be worth $700 million over three years, including streaming bonuses, AI copyright protection, and employment security.

Nearly 5 months since the strike began, CEO of Warner Bros, David Zaslav is praising the WGA representatives for their efforts. Speaking to the New York Times, David shared:

“They are right about almost everything... So what if we overpay? I’ve never regretted overpaying for great talent or a great asset."

Key Details of the Agreement

The successful resolution of the writer's strike has resulted in a collective bargaining agreement between the Writers Guild of America (WGA) and the Alliance of Motion Picture and Television Producers (AMPTP). This industry-wide strike agreement brings several key highlights for screenwriters and strengthens the screenwriters' union.

The WGA deal includes significant gains in terms of AI use and financial compensation for screenwriters. It establishes AI guardrails to protect writers' creative control and ensure the responsible use of AI technology in the filmmaking process. Additionally, the deal secures fair financial compensation for screenwriters, including improved residuals and streaming bonuses based on high viewership.

SAG-AFTRA's Similar Agreement

Similarly, SAG-AFTRA has been able to settle for $40 million in streaming bonuses as well as strengthened protections around the use of AI.

The contract will include:

"A 7% raise upon the contract’s ratification and then receive an additional 4% increase next July, totalling 11% —less than the 15% bump they initially asked for. "

Guild president Fran Drescher announced that the tentative deal she negotiated for her members is worth more than $1 billion and represents “a paradigm shift of seismic proportions.”

Another important aspect of the agreement is the inclusion of minimum staffing requirements for television writer's rooms. This provision ensures that television shows have adequate writing staff, promoting creativity and quality in television storytelling. Furthermore, the deal introduces streaming bonuses for high-performing shows, addressing historically low pay rates for actors on streaming platforms and recognizing the changing landscape of the entertainment industry.

Conclusion

Overall, the collective bargaining agreement reached between the WGA and AMPTP represents a successful resolution to the writer's strike. It not only brings significant gains for screenwriters but also strengthens the position of the screenwriters' union. The deal sets a precedent for future negotiations and showcases the power of collective bargaining in protecting the rights and interests of writers in the entertainment industry.

Hey, I'm Hudson! I write about social media, marketing, and modern entrepreneurship. Hit follow for more stories like this one.