The news: The Writers Guild of America (WGA) and the Association of Motion Picture and Television Producers (AMPTP) have announced a tentative deal that could put an end to the union’s 146-day strike as soon as today.
Forced to the table: After nearly five straight months of striking, AMPTP members began to significantly feel the brunt of production standstills.
What the future holds: The exact terms of the WGA/AMPTP agreement have yet to be revealed at the time of this writing, but it likely includes serious concessions from studios around the union’s key concerns: writer compensation and artificial intelligence.
Our take: The outcome of Hollywood strikes isn’t just about actor and writer compensation but about rethinking the existing streaming business model. With labor costs unlikely to go down, weaker streaming competitors may have to reexamine their paths to profitability and could tap back into licensing to increase revenues.
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