By: Gillian Lee
Volume IX – Issue I – Fall 2023
Introduction
On May 2, 2023, the Writers Guild of America (WGA) went on a strike against the Alliance of Motion Picture and Television Producers (AMPTP). Writers went on strike over labor conditions, including the encroaching threats of artificial intelligence and streaming, with a main call for increased, fair compensation. Both the East, Writers Guild of America East, and the West, Writers Guild of America West, branches voted to go on strike, representing approximately 11,500 writers. [1] With this, Hollywood shut down: scripted film and TV show’s filming and writing halted, thousands of people lost their jobs, and late-night TV went completely dark.
After 148 days, the WGA voted to end the writers strike after reaching a tentative agreement with the AMPTP on September 27, 2023. The agreement came with great accolades and was mainly seen as a win for writers. In a message to its members, the WGA Negotiating Committee wrote, “We can say, with great pride, that this deal is exceptional–with meaningful gains and protections for writers in every sector of the membership.” [2]
The strike stood as a cultural moment for workers rights–not just for writers in the entertainment industry but also for the workforce at large. The strike and agreement reflect how the modern technological landscape can transform workplaces, at times negatively, and workers must stand up for their rights. It is important to not let tradition dictate one’s rights but to rather fight for them to evolve. I argue the 2023 WGA Strike resulted in a positive, monumental agreement that will not only transform the labor conditions of Hollywood writers, but will set forth a ripple effect in related industries.
I. Background
The WGA negotiates a new contract, the Minimum Basic Agreement (MBA), with the AMPTP every three years. Sometimes the negotiations between the parties reach an impasse, and a strike begins. [3] Thus, while the 2023 WGA strike profoundly affected the entertainment industry, it is not a new concept; the 2023 strike is the eighth WGA strike in history. These strikes are especially significant given the unique nature of the writer’s union compared to other workers unions; the WGA encompasses many different levels of writers, particularly in terms of compensation, from highly successful showrunners on hit television shows to writers living paycheck-to-paycheck from one writer’s room to the next.
All eight writers' strikes had some high stake in improving writers’ pay. The first writers strike lasted 14 weeks in 1952, with an ultimate agreement on pay, script ownership rights, and writing for television. The subsequent strikes included strikes in 1960, 1973, 1981, 1985, 1988, and most recently, from 2007 to 2008. [4] One would see similarities between the 2007-2008 and the 2023 writers strikes since both demanded change based on the modern technology in the entertainment landscape. In 2007, writers advocated to receive revenue from works, like movies or television shows, that were streamed on the internet. [5] Similarly, writers in the 2023 strike were mainly motivated to receive increasing pay from streaming. It is interesting to see how the evolving nature of entertainment media, and the platforms on which it is displayed, has affected worker conditions and compensation structures. When comparing the 2007-2008 to the 2023 WGA strike and agreement, there are also some important differences. For one, the 2023 agreement came with wider agreement from writers, with a ratification of 99% of the vote, compared to 2008’s 93.6% of screenwriters. [6]
II. Strike and Legal Demands
WGA writers went on strike for multiple reasons, but compensation was the largest issue. Other main topics included debates around artificial intelligence (AI), streaming, and “mini rooms.” Studios initially responded with dismay saying that the strike came at a bad time for any major changes in writer compensation. For instance, streaming has decreased cable and broadcast networks’ viewership, and even streaming hit a recent rut with Netflix losing subscribers last year. [7] However, with countless picket lines and protests alongside a lack of workers behind the greatest shows in Hollywood, studios had to face the writers’ demands.
The rise of streaming played a pivotal role in igniting the strike. Writers argued that streaming negatively affected their compensation. For instance, streaming series typically have significantly less episodes per season–approximately eight to 12–compared to a typical television show’s over 20-episode season. [8] With less episodes, writers received reduced compensation for shows and decreased job stability. Furthermore, streaming allowed for less transparent viewership numbers to the WGA, leading to less residuals for streaming series and movies even if they proved to be highly successful. Streaming services mainly generate revenue from subscription fees whereas typical television series generate revenue from increased viewership numbers (due to their reliance on advertising revenue). Thus, WGA advocated for “success-based bonuses” for made-for-streaming television and movies in the strike. [9]
AI also threatens writers as recent technological advancements in AI-generated material could replace human-authored work. Writers did not want AI to write any narrative material, as it would threaten not only writers’ integrity but also their livelihood and pay. Writers did not want AI to use their original work to produce new, artificially-created material that writers would not get compensated for. [10]
Another topic of note was the use of writing “mini-rooms,” describing how many shows utilize a small core group of writers and then hire other writers for short-periods of time. As a result, not many writers were on any long-term payroll and thus lacked job security. This is especially important in the context of streaming because streaming shows tend to have much shorter seasons. Hence, many writers’ pay periods last merely weeks, instead of months. [11] The “mini-room” problem also appears in terms of lower pay before a show is greenlit as often there are a small number of writers working on a show pre-greenlight, so since it is not a formal writers room in development, often studios pay writers less. [12]
The Screen Actors Guild - American Federation of Television and Radio Artists (SAG-AFTRA) joined the WGA workers on strike in mid-July with similar desires for higher pay and AI regulations. This amplified the strike’s effect on Hollywood as both writers and actors went on strike, and drew even more media attention to the cause, likely motivating studios to take action and reach an agreement. SAG-AFTRA and WGA had not been on strike simultaneously for 63 years, signifying a monumental moment in the entertainment industry. [13]
III. Memorandum of Agreement for the 2023 WGA Theatrical and Television Basic Agreement: Content and Significance
Published on September 25, 2023, the Memorandum of Agreement for the 2023 WGA Theatrical and Television Basic Agreement outlines the recent WGA agreement. The agreement has a term beginning from its publication date, September 25, 2023, through May 1, 2026. It is also important to note that the 2020 MBA provisions remain unchanged besides changes explicitly reached in the 2023 negotiations. The “Summary of the 2023 WGA MBA” of the Memorandum of Agreement (“MOA”) breaks down the MOA’s full text. The summary divides the main provisions into changes for minimums increases, increased health and pension contribution rate and contributions for writing teams, artificial intelligence, improved screenwriter employment terms, improved high budget subscription video on demand (HBSVOD) terms, minimum advertising-supported streaming (AVOD) terms, series employment compensation increases, episodic series’ staffing and duration provisions, compensation provision for subscription streaming services, showrunner training program, additional arbitrators, the Tri-Guild audit program, and other changes. [14] Thus, the 2023 WGA MBA contains numerous changes, but this paper will focus on the topics I have deemed most significant: minimum pay increases, artificial intelligence, improved high budget subscription video on demand (HBSVOD) terms, and episodic series’ staffing and duration provisions.
The agreement includes a series of three pay increases for “staff writers and all Article 14 writers.” Their minimum weekly rates increased immediately by 5% on the agreement date, September 25, 2023. The minimums will increase by another 4% on May 2, 2024, and then by 3.5% on May 2, 2025 on top of the previous incremental changes. The agreement’s notice of changes in compensation also establishes a new tier of compensation for “writer-producers,” which includes people at the co-producer level or higher. The “writer-producer” tier will have a new higher minimum weekly rate “amounting to a 9.5% premium over the story editor/executive story editor rate” starting December 10, 2023. [15] Furthermore, in effect November 1, 2023, new pre-greenlight room premiums will be guaranteed up to 19 weeks, which specify a rate 25% over the highest regular room rate. These pay increases are plausibly the most significant parts of the agreement as the 2023 strike was rooted in a demand for higher pay. Thus, these concrete increases in writer pay, and specific attention to the categories of writer-producers and pre-greenlight rooms, demonstrate a win for the writers.
The 2023 WGA MBA pays close attention to AI. This is especially important due to AI’s increasing relevance and threat to creative authorship. The agreement acknowledges that generative artificial intelligence (GAI) has varying definitions but “generally refers to a subset of artificial intelligence that learns patterns from data and produces content, including written material, based on those patterns, and may employ algorithmic methods.” [16] The MOA also concretely specifies that “... written material produced by traditional AI or GAI shall not be considered literary material under this or any prior MBA.” [17] The agreement then outlines the acceptable ways to use GAI-generated material as a grounds for writing. The main guidelines include that the company needs to disclose whether they give the writer any GAI-generated material, GAI-generated material should not be considered when deciding a writer’s salary, credit, or separated rights, and a company cannot require a writer to use AI software. The MOA even lists examples of acceptable and unacceptable behavior with regards to writing and AI. Furthermore, the agreement specifies that the writer needs the company’s consent to use GAI as a tool. A company also cannot require a writer to use a GAI program “which generates written material that would otherwise be ‘literary material’” but allows for non-writing generating uses like copyright infringement. [18] Thus, the agreement emphasizes the importance of human-generated content, true creativity, and communication and compromise between companies and writers. The MOA appears to display GAI as an important tool for writing, but not a replacement. The agreement also addresses that “the legal landscape around the use of GAI is uncertain and rapidly developing.” [19] The MOA therefore implies that it does not intend to stand as a concrete mechanism of understanding GAI, but rather there will be a learning curve as time goes on.
Within the improved HBSVOD terms, the agreement included multiple wins: increased foreign streaming residuals, viewership-based streaming bonuses, streaming data transparency, and premiums for pilot and backup scripts. [20] The foreign streaming residuals for streaming services changed to depend on the number of foreign subscribers for the streaming services accessible globally. The foreign residual for streaming services with large global audiences increased by 76% as a result of the MBA. Furthermore, viewership-based bonuses and transparency in viewership were important terms of the agreement. Viewership transparency with the WGA will improve, with the Summary stating that, under a confidentiality agreement, companies must provide the WGA with “the total number of hours streamed, both domestically and internationally, of self-produced high budget streaming programs.” [21] The viewership-based bonuses will start January 1, 2024, and amount to new residuals for made-for HBSVOD television series and movies with higher viewership numbers within the first 90 days of release or subsequent exhibition years. The viewership must amount to at least 20% of the HBSVOD’s domestic subscribers, and if the show or movie meets this criteria, there will be a 50% bonus from the fixed residual. To conclude, made-for HBSVOD programming will now receive the 150% pilot premium and 115% backup script premium as a result of the agreement. [22] Overall, these terms show a strong change and attention to the HBSVOD marketplace.
The last essential provisions of the agreement include increased standards for minimum staffing numbers for episodic series. The provisions are divided into terms based on development rooms, post-greenlight rooms, and writers in production. Most notable are the guidelines for development rooms and post-greenlight rooms. For development rooms, if at least three writers are assembled to work before a series is ordered, a minimum of three writer-producers are guaranteed at least 10 weeks of employment. For post-greenlight rooms, minimum staffing numbers depend on how many episodes were ordered, and applies for any instance except if only one writer is writing all the episodes. For six episodes or fewer, there must be a minimum of three writers and three writer-producers in the writers’ room. For seven to 12 episodes, there must be a minimum of five writers and three writer-producers in the writers’ room. Lastly, for over 13 episodes, there must be a minimum of six writers and three writer-producers in the writers’ room. Also, according to the summary, “The minimum staff must be guaranteed at least 20 weeks or the entire duration of the post-greenlight room, whichever is shorter.” [23]
IV. Discussion and Implications
The WGA agreement proved to be a substantial win for writers in the entertainment industry. With the changes above outlining only part of the overall changes for labor conditions, the agreement set off a tremendous shift in entertainment.
First, the 2023 WGA MBA agreement included many concrete changes to the Hollywood writing workforce. Most notably, writers were guaranteed higher compensation. There were not only minimum week rate increases among all WGA writers, but also changes for the writer-producer tier and for bonuses specifically for made-for HBSVOD television shows and movies. Howard Rodman, former WGA president, said, “Unlike previous negotiations, there were significant if not groundbreaking gains in every single area: theatrical, streaming, ad-supported streaming, linear television, foreign residuals, writing teams… And in terms of sheer dollars? The contract provides more than two and a half times as much money in writers pockets as the companies were willing to part with on May 1.” [24]
The compensation changes not only addressed the overall demands of the writers, but also demonstrated a keen awareness of what parts of the entertainment writing industry needed the most robust change. For instance, the strike heavily advocated for changes in streaming since the new era of streaming proved to compete with writer’s rights and compensation. I argue the 2023 WGA MBA agreement took these issues seriously, with a defined roadwork of improving the hardships for working as a writer for streaming services.
The agreement also created detailed guidelines for addressing AI. This was arguably an impressive feat for the contract to articulate due to the new uptick in concern over AI, with platforms like ChatGPT only recently emerging. The fact that the agreement proclaimed that, “... written material produced by traditional AI or GAI shall not be considered literary material under this or any prior MBA” is especially important. [25] This guarantees that writers will not compete with AI systems to create the actual literal material of shows and films. The agreement also specifies many guidelines for communication and consent regulations between writers and entertainment companies when dealing with GAI-generated content. This communication network is essential in facilitating a healthy transparency between writers and companies when dealing with this new technological reality.
Furthermore, the agreement set forth viewership transparency for HBSVOD series and movies to the WGA. This is important since writers were arguably not given fair compensation if they were writing for successful made-for HBSVOD series and movies because streaming companies do not rely on advertising revenue from increased viewership, but rather rely on subscription fees. Thus, even if a show or movie proved to be a large hit, writers received mere fractions in compensation for that success. Now, high domestic subscriber viewership can lead to a substantial increase in compensation for writers. However, writers only get a bonus if viewership amounts to at least 20% of the HBSVOD’s domestic subscribers within the first 90 days of release or subsequent exhibition years. This is a high threshold to meet, so it is likely this will only amount to a win for only a small number of writers overall. This seems to be a significant shortfall of the contract since writers were looking for large improvements for compensation in the streaming realm. Furthermore, the improvements for streaming viewership transparency do not seem as sound as possible with the sole requirement to provide “the total number of hours streamed, both domestically and internationally, of self-produced high budget streaming programs.” [26] This does not appear to be a substantial concrete guideline to improve streaming transparency and it only applies to “self-produced high budget streaming programs.” The agreement could have applied to a wider net of programming, especially considering the high number of streaming series and movies offered on services like Netflix or Hulu.
The agreement also provided a win for staffing guidelines. Minimum staffing guidelines for writers and writer-producers for episodic series helps protect against “mini-rooms.” This change appears to have received more debate from the writer’s side in negotiations, with some advocating that there should be no minimums required and showrunners should instead have full discretion. For instance, one writer says “All the showrunners that want a staff should be given a staff. I don’t think it’s important to force those few that don’t want a staff to have a staff.” [27] However, other writers contrastingly pointed to how the agreement could propel more diversity in Hollywood. Jonathan Roessler, a co-chair of the Native American and Indigenous Writers Committee and a Netflix show writer, said, “The room size is so important, because most of the time ... it’s these underrepresented groups that get cut out of the rooms in favor of other writers.” [28]
In the larger outlook of the WGA strike and agreement, it seems like the rising support for labor unions in the U.S. helped the WGA. According to a 2023 Gallup report, 67% of Americans approve of labor unions. Furthermore, the Gallup report also looked for Americans' opinions on the WGA strike due to its rising significance and found that 72% of “Americans sympathize more with the television and film writers than with the television and film production studios.” [29] This majority support likely helped the writers as most of the United States seems to have sided with them, leading to increased support on the picket lines, social media, news, and more. For a strike dealing with the entertainment Americans watch daily, public support was essential.
Aligning with this high national loyalty for labor unions, the WGA strike will likely impact not only the entertainment industry, but also ignite change in other industries. Specifically, authorship professions like journalists should take inspiration from the WGA. Many media companies, even large conglomerates, are known to pay their writers low salaries, so perhaps the WGA strike could ignite powerful change for improved compensation within authorship overall. However, Hollywood is notably different from the newspaper or broadcast industries since Hollywood has large budgets, movie stars, and revenues. This is again especially true regarding the relatively recent popularity of streaming services. Other forms of media are unfortunately in social and economic decline, facing issues like closing local news stations or the rise of news on social media. Thus, without the high revenues to back them, it seems unlikely workers like journalists can ultimately derive a compensation win from the WGA strike. It is also plausible that journalists would face more difficulty to advocate for individual rights against AI because journalists write more objective articles, so they are more likely to be replaced or supplemented by AI material compared to Hollywood writers’ creative scripts.
Other authorship-related professions may have a greater chance of translating the WGA strike success to their own workplace. For instance, professors currently face threats from AI taking over research and writing. AI’s future effectiveness within the research realm is difficult to predict, however it is unlikely that AI could compile large amounts of data effectively and analyze it with the same degree of consideration and scholarly background as a professor.
Residual effects are also plausible for work forces outside authorship dealing with similar issues, like modern technological advancements. For instance, UPS workers are now competing against DoorDash drivers and seasonal Amazon employees. [30] The WGA strike may help these workers secure some work security. It is even more likely that the WGA strike will help create more public outcry for supporting labor unions like UPS due to high media visibility and the success of the 2023 WGA strike.
All parts of the contract worked together to build an agreement resulting with accolade and celebration. While it is nearly impossible to create a perfect agreement, the WGA 2023 agreement came close, and provided an important roadwork for future change. Justin Halpern, a Hollywood executive producer, proclaimed, “The biggest win is a collective win of all these policies…When we introduced the proposals, they’re interlocking. They don’t work if one or two pieces are missing. We needed to win parts of all of it.” [31]
Endnotes
[1] John Koblin and Brooks Barnes, “What’s the Latest on the Writers’ Strike?” The New York Times, March 21, 2023, https://www.nytimes.com/article/wga-writers-strike-hollywood.html.
[2] WGA Negotiating Committee, “Negotiations Update: Tentative Agreement,” WGA Contract 2023, September 24, 2023, https://www.wgacontract2023.org/announcements/negotiations-update-tentative-agreement.
[3] Koblin and Barnes, “What’s the Latest on the Writers’ Strike?”
[4] Scott Wilson, “A History of Hollywood Writers’ Strikes,” Los Angeles Times, May 4, 2023, https://www.latimes.com/entertainment-arts/business/story/2023-05-04/writers-strike-hollywood-history-wga-labor.
[5] Ibid.
[6] John Koblin, “Hollywood Writers Ratify New Contract With Studios,” The New York Times, October 9, 2023, https://www.nytimes.com/2023/10/09/business/media/screenwriters-contract-ratify.html#:~:text=In%202008%2C%%202093.6%20percent%20of,voted%20to%20ratify%20that%20contract..
[7] Koblin and Barnes, “What’s the Latest on the Writers’ Strike?”
[8] Ibid.
[9] Cynthia Littleton, “New WGA Contract Explained: AI Is Not a Writer, Solo Scribe Shows Don’t Need Minimum Staff and More,” Variety, September 27, 2023, https://variety.com/2023/biz/news/wga-new-contract-strike-ai-writers-room-staffs-residuals-1235736648/.
[10] Kim Bellware and Ben Brasch, “Why Are Hollywood Actors and Writers on Strike? Here Are the Issues,” The Washington Post, July 19, 2023, https://www.washingtonpost.com/arts-entertainment/2023/07/13/why-actors-writers-strike-sag-wga-issues/.
[11] Bellware and Brasch, “Why Are Hollywood Actors and Writers on Strike? Here Are the Issues.”
[12] Koblin and Barnes, “What’s the Latest on the Writers’ Strike?”
[13] Koblin, “Hollywood Writers Ratify New Contract With Studios.”
[14] “Summary of the 2023 WGA MBA,” Writers Guild of America West, Accessed November 17, 2023, https://www.wga.org/contracts/contracts/mba/summary-of-the-2023-wga-mba.
[15] “Summary of the 2023 WGA MBA.”
[16] “Memorandum of Agreement for the 2023 WGA Theatrical and Television Basic Agreement,” September 25, 2023, 68.
[17] “Memorandum of Agreement for the 2023 WGA Theatrical and Television Basic Agreement,” 68.
[18] “Memorandum of Agreement for the 2023 WGA Theatrical and Television Basic Agreement,” 70.
[19] Ibid.
[20] “Summary of the 2023 WGA MBA.”
[21] Ibid.
[22] “Summary of the 2023 WGA MBA.”
[23] Ibid.
[24] Lesley Goldberg, “Many Writers See Tentative Deal as Blueprint for Hollywood’s Future,” The Hollywood Reporter, September 27, 2023, https://www.hollywoodreporter.com/business/business-news/writers-tentative-deal-wga-amptp-1235602834/.
[25] “Memorandum of Agreement for the 2023 WGA Theatrical and Television Basic Agreement,” 68.
[26] “Summary of the 2023 WGA MBA.”
[27] Gene Maddaus, “TV Staff Minimum Remains Key Sticking Point, but Some in WGA Privately Grumble: ‘Nobody Asked for This,’” Variety, August 17, 2023, https://variety.com/2023/biz/news/writers-strike-screenwriters-oppose-staff-mininum-1235694323/.
[28] Christi Carras, “WGA Deal Brings Tears of Joy to Hollywood Writers, and Relief to a City Scarred by Strike,.” Los Angeles Times, September 25, 2023, https://www.latimes.com/entertainment-arts/business/story/2023-09-24/writers-strike-ends-tentative-deal-react#:~:text=Hollywood%20writers%20expressed%20joy%2C%20exhaustion,end%20a%20months%2Dlong%20strike.
[29] Lydia Saad, “More in U.S. See Unions Strengthening and Want It That Way,” Gallup, September 26, 2023, https://news.gallup.com/poll/510281/unions-strengthening.aspx#:~:text=By%2072%25%20to%2019%25%2C,television%20and%20film%20production%20studios.
[30] Calder McHugh, “Why the Writers Strike Is about Much More than Hollywood,” Politico, May 2, 2023, https://www.politico.com/newsletters/politico-nightly/2023/05/02/why-the-writers-strike-is-about-much-more-thanhollywood-00094985.
[31] Goldberg, “Many Writers See Tentative Deal as Blueprint for Hollywood’s Future.”