In the heart of Hollywood, the writers’ strike has entered its 33rd day, leaving an indelible mark on the entertainment industry. Although a resolution to the strike still appears distant, the directors of the cinematic mecca have managed to secure an agreement with the studios, allowing them to continue pursuing their professional careers.
Reported by The Hollywood Reporter, the previous agreement between the Directors Guild of America (DGA) and the Alliance of Motion Picture and Television Producers (AMPTP) came to an end on June 30. However, the directors have now reached a groundbreaking new agreement that addresses some of the core demands driving the writers’ strike.
A Historic Agreement with Promising Measures
This newly inked agreement is being hailed as “historic” and introduces several significant measures. Notably, wages and benefits for directors will see an increase of 5% in the first year of the contract, followed by 4% in the second year, 3.5% in the third year, and 0.5% in the subsequent years.
Furthermore, directors will enjoy a remarkable 76% increase in residual profits from films and series streamed on platforms with an international presence.
To illustrate the impact, consider that a one-hour episode streamed on Netflix will generate nearly $90,000 in residual profits for the director over the first three years of its release. This provision directly addresses one of the central concerns raised by the writers, whose residual benefits from video-on-demand (VOD) content have been minimal at best.
Addressing the Role of Artificial Intelligence
Beyond the financial gains, the agreement between directors and Hollywood studios delves into an unexpected territory: Artificial Intelligence (AI).
As AI increasingly diminishes the role of screenwriters, this agreement explicitly states that “AI is not a person, and anything it generates cannot be used to replace the work of a union member.” The agreement is expected to undergo ratification by union members through a vote scheduled for June 6.
A Step Forward Amid Ongoing Negotiations
While the writers’ strike persists, the directors’ union has made significant strides by securing a groundbreaking agreement with the studios. This development reflects a proactive approach in addressing the concerns and demands of industry professionals.
As negotiations continue, the entertainment industry eagerly awaits the resolution of the writers’ strike, hoping for a balanced and equitable outcome that can propel the industry forward while nurturing creativity and talent.
