Restrictions on the use of AI, minimum staffing in television writers rooms and a viewership-based streaming bonus.
Those are some of the many deal points in the Writers Guild of America’s tentative three-year contract deal with studios and streamers, the details of which were released to union members Tuesday. The highly anticipated pact also includes provisions that enshrine a second “step” for screenwriter deals, higher foreign residuals, and annual minimum pay increases of 5 percent, 4 percent and 3.5 percent over the course of the contract.
When it comes to rapidly developing AI technology, the union secured protections against AI penning or rewriting original material under the MBA or being used as “source material” to adapt. Writers can still use AI as a tool if the company they are working for allows it; however, they cannot be required to use it and companies must disclose if they are giving writers any AI-generated material during the writing process. In addition, “The WGA reserves the right to assert that exploitation of writers’ material to train AI is prohibited by MBA or other law,” the union stated in its summary of the 2023 MBA.
One important and sticky priority for the union this negotiations cycle was attaching compensation to the success of streaming shows — the union proposed to “establish a viewership-based residual — in addition to existing fixed residual — to reward programs with greater viewership” and to “require transparency regarding program views.” Its compromise with studios was establishing a new residual that would reward projects that “are viewed by 20 percent or more of the service’s domestic subscribers in the first 90 days of release, or in the first 90 days in any subsequent exhibition year.” Made-for-SVOD films and series would incur a bonus of 50 percent of its fixed domestic and foreign residual once it hit that benchmark, resulting in bonuses like $9,031 for a half-hour episode on major streaming services and $40,500 for a streaming feature with an over $30 million budget.
As for streaming transparency, the compromise was limited. The union will have confidential access to “the total number of hours streamed, both domestically and internationally, of self-produced high budget streaming programs (e.g., a Netflix original series)” and “may share information with the membership in aggregated form” — in other words, there will be somewhat more transparency, but the streaming services aren’t exactly opening up their troves of data for public consumption.
In terms of minimum room size, the guild in May asked for a minimum of staff of six writers and one additional scribe for every two episodes after that, with a maximum of 12 in the room for pre-series-order scripted programs. The tentative agreement includes a minimum staff size of three writer-producers for a first-season show for development rooms running 20 weeks or longer, with a formula for additional seasons tied to the number of episodes. Minimum room size has been one of the thorniest issues during the five-month work stoppage, as showrunners previously were able to determine the size of their writing staffs. The WGA pushed for minimum room size requirements in a bid to prevent studios and streamers from employing AI as a means to save costs on scribes. Other gains included span — the length of time writers will be employed on scripted shows — with development rooms now guaranteed at least 10 consecutive weeks, post-greenlight rooms securing 20 weeks or the duration of the room. These terms will apply to seasons where the first episode is written after Dec. 1, 2023, which means preexisting programs do not have to adhere to the room size or span requirements.
The WGA entered the strike asking for a cumulative 16 percent increase in residuals over the three-year MBA and wound up with 12.5 percent. The union additionally secured an increase in the employer contribution to the union’s health fund, based on reportable earnings, of 0.5 percent in the second year of the contract (going from 11.5 to 12 percent).
As part of the deal, screenwriters clinched a guaranteed second “step,” or point of payment, in their deals “whenever a writer is hired for a first draft screenplay for 200 percent of minimum or less, including original and non-original screenplays.” The union gained the new foreign residual formula that the Directors Guild of America earned in its 2023 deal, which bases payment on the number of the service’s foreign subscribers.
The union seemingly did not secure a commitment from the AMPTP that would allow union members to refuse to cross other unions’ picket lines without consequences, as they asked for starting in August, as SAG-AFTRA remains out on strike.
The three-year contract is still subject to a ratification vote from members, and can go into effect if a majority of eligible voters support the deal. If they do not, union negotiators will have to go back to the bargaining table to hash out a pact that members can support.
The ratification vote for the contract will take place between Oct. 2 and Oct. 9.
