POV: you’re a writer in Hollywood

Hollywood’s writers and studios have reached a tentative deal, all but ending a strike that’s lasted ~150 days.

The final language is still being drafted and the deal still needs to be approved by a majority of the ~11,000 Writers Guild of America (WGA) members in the coming days, but based on the initial response from the writers’ side that doesn’t appear to be a major concern.

📝 Deal points: Writers got much of what they demanded, including minimum staffing for TV shows and guarantees that artificial intelligence won’t usurp writers’ credits and compensation.

Another major sticking point for writers was how residual payments would be doled out in the streaming era. In this instance, studios reportedly agreed to increase compensation for streaming content.

But expect residuals to be a key sticking point in the future, too

Basically, every time a new piece of technology is invented that alters how content is distributed – from the radio to the TV to online streaming platforms – the old way of compensating creators doesn’t necessarily apply.

This reality has been a point of contention between creators and companies for nearly 100 years. A few examples:

• 1930s: Radio performers were required to perform a show live for East Coast listeners, then wait a few hours to perform the same show again for West Coast listeners. The invention of recording technology flipped this process on its head, since the first show could just be recorded and played again. Performer pay was halved, but radio companies didn’t trust the tech, and paid performers to remain on-hand anyways in case of any technical difficulties – which is how the concept of residual payments was born.
• 1950s: TV networks had the same worry about tape and adopted the same policy as radio companies, per the NY Times. The Screen Actors Guild then started pushing for residuals when movies were replayed on television. In 1960, the networks and studios agreed.
• 2023: Hollywood’s writers – and actors – go on strike, in part because of how the distribution of content (and the compensation associated with it) has changed in the streaming era.

🤔 Speaking of actors… Hollywood’s writers may have a tentative deal, but their in-front-of-the-camera brethren are still on the picket line. The writers’ deal could accelerate negotiations and provide a framework to help resolve the actors’ strike, however, because it addresses many of the same concerns regarding streaming residuals, AI, and other issues.