The entertainment industry faced an unexpected plot twist this year, with the Writers Guild of America (WGA) making headlines. In April, a resounding 97.85% of WGA members cast their vote in favor of a potential strike against the Alliance of Motion Picture and Television Producers (AMPTP). 

WGA orchestrated the strike based on a few concerns, including unfair wages, low residual payouts, and the contentious use of artificial intelligence in crafting film and television scripts. The WGA’s primary fear of AI is that it will slowly erode job opportunities for writers and lead to the creation of more substandard content. The union was also worried about the vulnerability of intellectual property to theft in this AI-driven landscape. To safeguard against these perceived risks, the WGA proposed delineating AI-generated material as distinct from traditional ‘literary material’ or ‘source material’ and has advocated against using existing scripts for AI training purposes. 

The crux of the matter lay in the pursuit of a satisfactory agreement between the WGA and the AMPTP, the latter representing the major film and television studios in Hollywood. Despite protracted negotiations encompassing prominent industry players like Amazon Studios, Apple Studios, Netflix, Disney, and more, the May 1 deadline passed without a consensus, triggering the strike — the first significant strike since the memorable 2007–2008 standoff.

As the clock struck midnight on May 2, picket lines began forming outside prominent studios and production houses. From the sprawling campuses of Disney to the bustling hub of Netflix and the legendary Warner Bros. Studios, writers stood united in their resolve. The WGA set stringent guidelines, prohibiting members from engaging in any writing, revising, or pitching with companies affiliated with the AMPTP.

Solidarity echoed through the industry as writers rallied to support their fellow creatives despite financial uncertainties arising from the strike. The Entertainment Community Fund and renowned writers, showrunners, and producers, including the likes of J.J. Abrams, Shonda Rhimes, and Greg Berlanti, offered aid and pledged money to those facing financial hardships.

Months passed with negotiations looming on the horizon, interspersed with hopeful but inconclusive meetings between the WGA and the AMPTP. The turning point arrived in September, signaling a potential breakthrough. With renewed vigor, both parties engaged in a series of meetings. Studio CEOs joined negotiations, hinting at a growing sense of urgency and commitment to finding common ground. After extensive deliberations, a tentative agreement was reached on September 24, marking the beginning of the end of the prolonged strike.

The dawn of September 27 brought the much-awaited news — official confirmation that the strike had concluded. A sigh of relief swept through the entertainment community as the industry looked forward to rekindling its creative engines. The new contract, a product of arduous negotiations, heralds a shift in the dynamics between writers and studios, addressing crucial concerns while setting the stage for a more equitable future. The deal encompasses many of the pivotal points the members had staunchly advocated for throughout the negotiations. This includes wage increases, better residual payouts, and comprehensive directives concerning the utilization of artificial intelligence in the creative process.

The 2023 Writers’ Strike, an epochal event that disrupted the status quo, not only showcased the resilience of writers but also emphasized the significance of unity and collective action in shaping the entertainment landscape. 

When it comes to intellectual property, valuation firms like ours are essential in assessing the worth of intellectual property (IP), notably copyrights, within the entertainment industry and beyond. Employing a blend of financial analysis, industry expertise, and market insights allows us to enable stakeholders to make informed decisions regarding the monetization, licensing, or sale of intellectual property.