Walt Disney, Netflix, and other major movie and TV production companies have disclosed the terms of their latest contract proposal to the striking writers. Initial assessments suggest that this offer may not effectively resolve the ongoing Hollywood strike.
On Tuesday, CEO Bob Iger of Disney (DIS) and co-CEO Ted Sarandos of Netflix (NFLX) held meetings with the leadership of the Writers Guild of America.
As a result, specific details of the recent offer made by Hollywood studios and media firms to the striking writers were made public. These details include a guaranteed minimum length of employment, regulations concerning the utilization of generative artificial intelligence, and wage hikes. The Wall Street Journal reported on these developments.
This move potentially signifies growing exasperation on the part of the Hollywood studios, considering that the writers have been on strike since May 2, with actors joining the industrial dispute in July. Negotiations with the writers have resumed this month, marking the first publicly acknowledged talks since the initiation of the strike.
The Latest Development in the AMPTP-Writing Guild Negotiations
The Alliance of Motion Picture and Television Producers (AMPTP) has recently put forth a revised offer to the striking writers from the Writers Guild of America. This latest proposal, as reported in the Wall Street Journal, includes a 13% wage increase spread over a three-year contract. While the offer also addresses minimum staffing concerns, it falls slightly short of what the striking writers had initially sought.
Representing major companies such as Netflix, Disney, Amazon.com, Paramount Global, and Warner Bros. Discovery, the AMPTP is actively engaged in negotiations to resolve the ongoing dispute.
In response to the AMPTP's offer, the Writers Guild of America expressed disappointment, claiming that it fails to adequately protect its members. In a statement published online, the guild accuses the AMPTP of strategically releasing proposal details to create divisions among its members.
This latest development indicates that the strike is likely to continue for an extended period. The Writers Guild of America estimates that meeting their demands would cost the industry approximately $429 million annually. Additionally, Moody's Investors Service has projected that new contracts with labor representatives for writers, actors, and directors could ultimately cost the media firms it covers between $450 million and $600 million per year.
As negotiations continue, both sides are striving to find common ground and reach a mutually beneficial agreement for all parties involved.
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