Is The WGA Strike Coming To An End? Writers Guild Holds 'Encouraging' Talks With Hollywood Studios

The Writers Guild of America (WGA) strike has taken a positive turn as negotiators are reportedly ready to end the demonstrations. The two sides are prepared to come to a compromise and are optimistic about how things will turn out. The strike might last until the end of the year if there's no agreement.

Warner Bros revealed earlier that the four-month-long strike could cause a loss of up to $500 million for the company. The Guild has rejected Hollywood Studios' past offer and demands that they "protect" their rights. 

Hollywood Studios and the Writers Guild of America (WGA) are reaching an agreement concerning the writers strike . The strike began in May following nonchalance from the studios to attend to writers' requests for payment increase and protection from AI.

Despite several past attempts to reach a compromise, this is the closest the opposing sides have gotten to agreeing on a way forward after an "encouraging" face-to-face meeting.

On Wednesday, some top CEOs, including Disney's Bob Iger and Netflix's Ted Sarandos, and representatives of the Writers Guild met to negotiate on the issues. The sides released a statement, according to Daily Mail, noting that they'd be meeting on Wednesday and Thursday to reach a possible end to the strike.

While CEOs were usually not present at bargaining sessions, the crisis, which has financially and economically affected industries, forced the leaders to be involved in the negotiations. A representative of the Studios noted to The Hollywood Reporter, "CEOs have cleared their calendars and want to sit and have a real conversation."

They added prior to the meeting, "This is so long in coming; everyone's feeling pain. Let's get in there and nail things down." While the Wednesday talk concluded with no clear outcome, the sides set another meeting for Thursday to reach an agreement.

Hollywood studios attempted to negotiate with the writers in August with their "best offer." However, they were turned down for failing to meet their expectations and "sufficiently protect them," as noted in their requests.

According to The Hollywood Reporter, the offer by the Alliance of Motion Picture and Television Producers (AMPTP) included a salary increase, their largest in 35 years. It also consists of an offer to protect the writers against AI and a boost in residual pay, as stated by the group.

The package committed to not using AI-generated content as literary material. The studios also suggested a 5 percent raise in wage rates for the first contract year, then four percent in the next year, and 3.5 in the third year.

While there's hope that the sides would reach a responsible agreement, CNBC reported that the strike could extend till the end of the year if things don't go well.

According to THR, The Writers Guild of America noted in a statement to their members that the negotiation may cause them to keep a low profile for "the coming days." 

However, they asked them to trust in the process. "Know that our focus is getting a fair deal for writers as soon as possible."

A commentator wrote about the Guild's message, that "they expect real negotiations. Not to talk for a little while. They didn't say that for the last time they spoke with the AMPTP. They are at least hoping/expecting something real."

The four-month-long strike, which began in May, has had several negative outcomes on the Hollywood economy. The American film industry is currently experiencing its first work halt in over six decades. 

Warner Bros. Discovery revealed that the strike could cost them up to $500 million in just one year. According to Daily Mail, the company previously gave financial guidance for 2023, deeming the strike wouldn't exceed September. 

But, with the strike going strong, the company now anticipates a severe decline in income. It expected the success of its recent "Barbie" film to cover for the losses after its $1.38 billion earnings at the box office, but it couldn't.

The company recorded savings of up to $100 million due to the strike and work stoppage but expects to lose much more. Per the financial update, it plans to "continue to adjust its expectations based on when and how the strikes are eventually resolved" while hoping for a positive outcome.