No Rights? No Writes!

By Parker Fields

The summer of 2023 led to the resurgence of cinemas all across the country. The blockbuster duo of Barbie and Oppenheimer brought in approximately $2.4 billion combined at the worldwide box office. So this means Hollywood is thriving once again post-covid lockdown, right? Wrong. From an outsider's perspective, it may seem like movie studios are on the rise; however, behind the camera, major studios and their former workers are losing millions of dollars on the daily, a massive stalemate that’s resulting in the loss of 45,000 jobs and an estimated $6.5 billion loss for the economy of Southern California.

This catastrophic Hollywood crisis began when the Writers Guild of America (WGA), which represents 20,000 film and television writers, began striking in May of 2023 against the Alliance of Motion Picture and Television Producers (AMPTP). The AMPTP includes many of the major film and T.V. companies such as Disney, Paramount, Netflix, Amazon, Sony, & Warner Brothers. AMPTP also includes broadcasting networks such as ABC, NBC, CBS, and FOX. Shortly after, the Screen Actors Guild – American Federation of Television and Radio Artists (SAG-AFTRA), which represents around 160,00 performers nationwide, began to flirt with the idea of joining the writers at the picket lines. The actors shared many concerns with the writers about residual payments and the growth of AI, which led to the declaration of SAG-AFTRA’s strike in July.

“Residuals; that’s how we live,” said actor Whitney Morgan Cox, who has worked on shows such as Criminal Minds, told ABC News. “There are our initial paychecks, which helps, but then there are our residuals which help us with our groceries and our day-to-day lives.” 

Residual payments, which are long term payments from reruns or other airings for those who worked on the project, are how writers and actors make ends meet when not employed on a project. Cox is not alone in her stance either, “When [The Office] was the number one show on Netflix, they are able to make a significant profit off of that, but that doesn’t trickle down to the blue-collar actors like me,” said David Denmen who appeared on 31 episodes of the hit comedy series, “The Office,” “We’re just asking to share in the profit when the show is successful, that’s it.” Not only are actors being kept afloat solely based on their residual payments, but it could lead to the loss of their union health insurance. The requirement to receive union health insurance is $26,470 annually, which 87% of SAG-AFTRA members aren’t earning. The detriment to residual payments is the rise and reliance of companies on made-for-streaming properties. In 2022, screenwriter Kyra Jones posted on X, “My first residual check for the broadcast show I wrote on was $12,000. I just got my first residual check for my streaming show… $4.” Due to the pandemic, many of the AMPTP companies refrained from theatrical releases, and opted for series they could release on their streaming platforms. The biggest example of this would be Disney’s handling of the Marvel Cinematic Universe. Marvel is still to this day the highest grossing franchise of all time at the box office, grossing $30 billion dollars, more than doubling second place, Star Wars. It possesses many accolades such as having the biggest opening weekend of all time with Avengers: End Game and holding 4 of the top 10 highest grossing films of all time. However, with the pandemic closing theaters worldwide, Disney began aiming for the small screen. This led to the production of series such as WandaVision and Loki. 

However, this isn’t anything new, it’s been happening for about a decade now. In 2013, Orange is the New Black became the first majorly successful made-for-streaming series. It put Netflix on the map as a major contender in the movie and television industry; however, an actor on the series, Matt McGorry, stated, “I kept my day job the entire time I was on the show because it paid better than the mega-hit TV show we were on.” Another cast member, Beth Dover, even went as far as saying “It actually COST me money to be in season 3 and 4.” No longer are the days when the cast of FRIENDS made millions per episode, a decade after the show airs. The streaming model is purely subscription based, so the AMPTP companies don't have to pay the crew of a project, due to it not airing or going through reruns. The last time the terms and calculations for these residuals were negotiated was the last time the WGA and SAG-AFTRA had a joint strike: 1960. 

“If you’re using Brad Pitt’s smile and Jennifer Aniston's eyes, both would have a right to consent,” said SAG-AFTRA chief negotiator Duncan Crabtree-Ireland when discussing the union's requirements concerning Artificial Intelligence (AI). AI has been another hot button issue that has concerned actors and writers alike with its advanced technology. Throughout the past few years, the unsettling advancements in AI technology has been causing controversy in many areas such as in schools and in healthcare. Even the Grammys have had to make rulings as of late about the use of AI in music. With its extensive growth, AI was inevitably going to wiggle its way into film and TV, but the manner in which studios would make use of it was unknown. That was until Bruce Willis was seen bound to a ticking time bomb in a russian commercial. Willis denies ever selling the rights to his face to the deep fake company that used it. This put SAG-AFTRA on high alert as to what the future holds with AI and was a main component in negotiations with the AMPTP that regulations be put on AI use. Their fears were validated even further when a scene from Disney’s Prom Pact had bleachers of a basketball game loaded with characters that were obviously computer generated.

Similarly, writers had already begun piecing together how AI could easily swoop in and take their jobs right from underneath them. With AI software such as ChatGPT, all it takes is feeding old screenplays into the system and then asking it to create a new one and boom: there goes the need for screenwriters in Hollywood. Los Angeles Times recently teamed up with WGA writers and GPT-4 (AI software) to conduct a survey on whether there are major differences between the two scenes that were written, the one written by a professional, and the other by a robot.

All this seems to be contained in the Hollywood setting, but it is swiftly affecting audiences everywhere. Famed writer-director Christopher Nolan, known for works such as “The Dark Knight” trilogy and Inception, set the release of his 12th feature length film, Oppenheimer, for July 2023. While Oppenheimer would go on to gross nearly $1 billion, becoming one of the highest grossing of his career and of the year, the start of the strike landed right at its release, which affected some early premiers and promotions for the film. "It was very bittersweet to have the actors there supporting the film, and then understanding that they needed to then leave and go on strike," Nolan told CBS News following the cast walking out on the red carpet premiere in London. However, the release of Oppenheimer would be considered smooth sailing compared to other films that weren’t so lucky. Dune: Part 2, the sequel to 2021’s Dune, was set for release in October of 2023, before getting pushed back to November, and eventually ending up on a release date in March 2024. Director Dennis Villeneuve, known for works such as Prisoners and Arrival, along with Warner Brothers, knows this movie is set for success. With a star studded cast led by Timothee Chalamet and Zendaya, it’s bound to rack up at the box office. However, with the strike still in effect, there wouldn’t be the publicity campaign that everyone desired. Finally, while Dune: Part 2’s situation was taking place following the movie being completed, there were films that were even more unlucky. Films that were in production at the time of release include live action remakes of Snow White and Lilo & Stitch, sequels to comic book movies like Captain America, Venom, and Deadpool. As well as prequels to the films The Lion King and A Quiet Place. These films were paused due to the strikes; however, they would soon come to an end.

“The WGA and AMPTP have reached a tentative agreement” was the only comment made by AMPTP in the wake of their final negotiation with the WGA in late September. “We can say, with great pride, that this deal is exceptional – with meaningful gains and protections for writers in every sector of the membership,” the WGA’s negotiating committee wrote in an email sent to members. Showrunner Latoya Morgan went on X to express her excitement, “This is not hyperbole: Your 2023 WGA Negotiating Committee did a superb job. BRAVO.” Pretty telling of which party was satisfied with the results. Bob Iger, CEO of Disney, originally called the WGA demands “not realistic.” Igers would eventually agree to the terms in order to get his studio’s writers back. The committee itself pointed to “meaningful gains and protections for writers in every sector of the membership,” such as streaming bonuses based on viewership, financial gains for screenwriters, and a minimum staffing requirement for virtually all television writers’ rooms. 

Regarding AI, strict rules were put in place to protect the writers against their artificial adversaries. Studios will now have to inform writers when giving them anything AI-generated and are restricted from using it to write or rewrite literary material. For the AMPTP, massive hits to their annual income were delivered due to the WGA strike. Warner Brothers Discovery has already stated that annual earnings for the company will fall short somewhere between $300 million and $500 million. Not only was Warner Brothers Discovery hit financially, but an anonymous executive at the company shared news that new CEO David Zaslav’s plan was “to allow things to drag on until union members start losing their apartments and losing their houses.” 

With the WGA strike officially over, the second-longest writers’ strike in Hollywood history will undoubtedly go down as a win for the writers. Following the WGA’s tentative agreement, the Directors Guild said it best, “Now it’s time for the AMPTP to get back to the table with SAG-AFTRA and address the needs of performers.” 

On Wednesday, November 8, the AMPTP and SAG-AFTRA reached a tentative agreement to finally put an end to the second historic strike this year. However, it was a hard fought uphill battle for SAG-AFTRA to reach this deal. “From July 14 to October 3rd, we never heard from the AMPTP,” union president Fran Drescher stated, “We went to the press and said, ‘What are they doing? What are they waiting for?’” With the union not pulling any punches, the AMPTP began fearing they couldn’t hold out any longer. “I think they realized that they were facing a new kind of leadership in me and Duncan," Drescher continued. "We deflected their intimidation tactics. They had to acknowledge that we were demanding respect."

For residual payments, the AMPTP rejected all offers made initially. The new contract establishes a streaming participation bonus for the first time. It will also begin compensating performers in addition to the traditional residuals. 

Regarding AI, SAG-AFTRA secured “consent and compensation guardrails.” Under the newly approved contract, studios must obtain an actor's full consent before creating or using a digital replica. This has no limitations, whether they’re an A-list Hollywood icon or simply a background extra, AI is off limits without consent. Crabtree-Ireland said that AI was one of the most divisive issues in the negotiation rooms. “That was the piece that came together on the very last day, on day 118 of the strike," he explained. “AI protections for performers mean the preservation of tens of thousands of jobs” 

The resolution of the WGA and SAG-AFTRA strikes marks a pivotal moment for Hollywood, and the demand for fair compensation. As the industry looks towards a future defined by streaming, artificial intelligence regulations, and renewed collaborations, the resilience demonstrated by these unions serves as a testament to the enduring power of collective action in shaping the evolving landscape of entertainment.