Why were the Hollywood writers on strike in 2024

The entertainment industry experienced a major shift during the 2024 WGA strike, which lasted from May 2nd to September 27th. Emerging technologies, fair compensation, and job security led to years of growing discontent among writers.   

How Writers Are Paid

Writer remuneration involves a combination of salaries, fees, and residuals, making it a complex process. Scripting an episode or screenplay earns a fixed payment known as a salary. Writers receive fees for completing specific writing tasks such as creating outlines or doing rewrites. Residuals, which have traditionally been a major source of income, refer to the payments received when a writer's work is aired or distributed on platforms like TV, DVD, or streaming services.

The television industry operated for decades under a system that guaranteed writers a substantial amount of residual income through syndication and DVD sales. However, the advent of streaming has drastically altered this model. Many streaming platforms offer flat fees for entire seasons, significantly diminishing the potential for residual earnings. The opacity surrounding streaming viewership data has further exacerbated the issue, as it's difficult to accurately calculate residuals based on audience numbers.

The Decline of Residuals

The rise of streaming platforms has dramatically impacted how writers are paid. While traditional television provided a relatively stable revenue stream through syndication and DVD sales, streaming services often offer flat fees for entire seasons, significantly reducing potential earnings for writers.   

Residual royalties, once a substantial portion of a writer's income, have dwindled due to the opaque nature of streaming viewership data. The industry standard for residual royalties on network television was once around 2-3% of an episode's license fee. However, writers now receive far less income from the continued success of their work due to the significant reduction of these percentages in streaming deals.

The Threat of Generative AI

A central issue driving the strike was the rapid advancement of generative AI. The WGA expressed deep-seated concerns about the potential for AI to replace writers, diminish job opportunities, and erode creative control.   

AI-powered tools capable of generating human-quality text pose a direct threat to writers’ livelihoods. There's a fear that studios could use AI to produce scripts at a fraction of the cost, rendering human writers obsolete. Beyond job displacement, there's also the concern about AI being used to create derivative works without proper compensation for original creators. Writers argued that AI should be considered a tool, not a replacement, and that safeguards need to be in place to protect their rights and ensure fair compensation.   

The strike served as a catalyst for discussions about the future of creativity in the age of AI. While AI offers potential benefits, it's essential to establish ethical guidelines and regulations to prevent its misuse and ensure that human writers continue to play a vital role in the creative process.

The Impact of the Streaming Boom

While streaming platforms have expanded content consumption, they have also disrupted the traditional economic model of the entertainment industry. The binge-watching culture encouraged by streamers has led to shorter production cycles and fewer episodes per season, resulting in lower overall earnings for writers. Additionally, the intense competition among streaming services has driven down licensing fees, further impacting writers' incomes.

The Outcome of the Strike

After a 148-day strike, the WGA and the Alliance of Motion Picture and Television Producers (AMPTP) reached a tentative agreement on September 24, 2023. The deal addressed several key issues raised by the writers, including:   

• Increased minimum pay: Writers will receive higher base pay for television and streaming work.
• Residuals: The agreement includes improved residual structures for streaming platforms, providing writers with a fairer share of revenue.
• AI safeguards: The contract establishes guidelines for the use of AI in writing, protecting writers' rights and creative control.   
• Writers' room sizes: The agreement addresses concerns about the size of writers' rooms, ensuring adequate staffing for creative development.

While the strike undoubtedly caused significant disruptions to the entertainment industry, it also marked a turning point for writers, who secured important gains in terms of compensation, working conditions, and job security.