Entertainment
Hollywood directors avoid strike after reaching deal with studios
Hollywood studios have reached a tentative agreement with the union representing directors, easing fears of a shutdown as the industry faces a strike by screenwriters and prepares to begin collective bargaining with film actors.
The Directors Guild of America said it reached an agreement with Hollywood studios early Sunday on some of the most contentious issues facing the industry, including streaming royalties and protecting jobs from progress. of artificial intelligence.
We have reached a truly historic agreement, said Jon Avnet, Chairman of the DGA Negotiating Committee.
The deal guaranteed a substantial increase in royalties for drama programs on streaming services, said the DGA, which has 19,000 members. The earnings represented a 76% increase in foreign residuals for the largest broadcasters, translating into earnings of $90,000 for one-hour episodes over three years. These royalties will be determined based on the number of international subscribers to the streaming services.
Both parties also agreed that generative AI cannot replace functions performed by administrators, the DGA said. The union will vote on the contract proposal on Tuesday.
The move comes as the 11,500-member Writers Guild of America strike extends into its second month after failing to reach an agreement with the Alliance of Motion Picture and Television Producers, a group that represents Hollywood studios and streamers.
Like directors, some of writers’ biggest concerns revolve around streaming royalties and the use of AI. The actors’ union, SAG-AFTRA, is expected to start talks with the studios later this week, with AI also expected to be at the center of the talks.
In recent weeks, studio executives have expressed hope that the directors could reach an agreement, which would then serve as a template for deals with writers and actors. The writers’ union has no discussions planned with the studios.
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