Hollywood’s Turning Point: Navigating the Post-Strike Era and the Gaming Industry’s Rising Influence

The end of the writers strike signals a positive momentum shift in the Hollywood production landscape. However, eyes are now on how the studios will navigate negotiations with SAG-AFTRA, especially with the looming threat of a strike in the lucrative video game sector. Investors are monitoring developments closely, especially concerning big players in the entertainment and gaming industry.

Here’s what you need to know:

• Strike Concludes: The Hollywood writers strike, which lasted nearly five months, has ended. The Writers Guild of America’s boards approved a contract with major studios, streaming services, and production companies.
• Details of the Agreement: The new three-year contract includes substantial benefits for writers, focusing on compensation, employment duration, staff sizes, and AI controls. Initial insights reveal that compensation hikes range between 3.5% and 5%, a middle ground between the initial asks of both parties.
• Streaming Show Bonuses: A new residual payment system will reward writers for contributing to the most-watched shows on platforms like Netflix Max.
• Staffing Provisions: For shows running at least 13 episodes, a minimum of six writers will be staffed. Initial development shows will guarantee writers a minimum employment of 10 weeks.
• AI Inclusions: The contract establishes that AI-generated narratives won’t count as “literary material,” ensuring writers don’t compete with machines for credits. Writers can use AI tools, but only if the company agrees, and they can’t be forced to use AI.
• Solidarity with Actors: While the writers’ picket lines were halted, many still expressed solidarity with actors. The Alliance of Motion Picture and Television Producers (which represents studios in negotiations) has primarily negotiated with writers but is expected to soon shift focus to SAG-AFTRA discussions.
• Actors Eyeing Video Game Market: The Screen Actors Guild-American Federation of Radio and Television Artists (SAG-AFTRA) are also considering extending their strike to the video game industry, adding more leverage against big players such as Activision Blizzard (ATVI), Electronic Arts, Take Two Productions (TTWO) as well as Disney’s (DIS) and Warner Bros’(WBD) gaming division. With U.S. consumer video game spending totaling $56.6 Billion in 2022, this is a significant development.