The monthslong Hollywood strike is finally nearing its conclusion after writers, studios and streaming services reached a tentative agreement Sunday night. Warner Bros., Comcast and Disney stock reversed lower after climbing premarket Monday. Paramount Global and Netflix edged higher.
Financial terms of the new three-year deal were not disclosed. But the agreement includes several victories for union members including royalty increases, mandatory staffing for TV writing rooms and protections regarding the use of artificial intelligence, The Wall Street Journal reported, citing people familiar with the deal.
The Writers Guild of America (WGA) is still finalizing the memorandum of agreement with the Alliance of Motion Picture and Television Producers (AMPTP), which represents movie and TV studios, networks and streaming companies. The negotiating committee will vote on whether to recommend the deal and send it for approval from WGA members.
The writers' strike won't officially end until the agreement is ratified by the WGA. The agreement comes after five consecutive days of discussions involving Warner Bros. CEO David Zaslav, Disney CEO Bob Iger, Netflix co-CEO Ted Sarandos and NBCUniversal Studios Chairman Donna Langley.
Actors Still Striking
However, there's still no deal in place for the Screen Actors Guild (SAG-AFTRA), which represents actors, announcers, singers and other media professionals. SAG-AFTRA has been on strike since mid-July with similar demands for better wages, residual payments from streaming services and job protections against AI. The union represents nearly 261,400 media professionals nationwide. Its members include 160,000 actors from A-list stars to background extras.
"SAG-AFTRA congratulates the WGA on reaching a tentative agreement with the AMPTP after 146 days of incredible strength, resiliency and solidarity on the picket lines," the union wrote in a statement. "While we look forward to reviewing the WGA and AMPTP's tentative agreement, we remain committed to achieving the necessary terms for our members."
Stocks React To Writers' Strike Deal
Television and movie studios and streaming service stocks mixed Monday after initially climbing in premarket trade. WBD stock fell nearly 4% Monday after climbing 2% premarket. Paramount Global rose slightly. NBCUniversal parent Comcast, which has big cable and broadband operations, edged down about 1%. Netflix stock climbed 1.3%. Disney eased 0.3% after rising modestly premarket.
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