The New WGA Contracts
Transforming Hollywood with Historic Raises and AI Regulations
Hollywood, CA — The Writers Guild of America (WGA) recently reached a groundbreaking agreement with the Alliance of Motion Picture and Television Producers (AMPTP), unveiling a contract with significant implications for Hollywood’s future. The deal, outlined in the 2023 WGA Memorandum of Agreement (MOA), introduces remarkable pay increases and pioneering regulations on the use of artificial intelligence (AI) in entertainment content creation. Additionally, it ushers in a new era of transparency in streaming data, which could revolutionize the industry. Explore the key provisions of the 2023 WGA MBA and its potential impact on the entertainment landscape:
Historic Pay Increases
Term of Agreement
The 2023 WGA MBA extends from September 25, 2023, through May 1, 2026, setting the stage for significant changes in the industry over this period.
Minimums Increase
One of the most notable aspects of this agreement is the substantial increase in minimums for writers. Most minimums will experience a 5% boost upon ratification of the contract, followed by 4% on May 2, 2024, and 3.5% on May 2, 2025. This raise will positively impact writers across the board, contributing to improved compensation for their work.
Increased Health and Pension Contribution Rate
The Health Fund contribution on reportable earnings will rise from 11.5% to 12% in the second year of the agreement. Additionally, the WGA has the authority to allocate an additional 0.5% in each of the second and third years from various minimum increases to either the Health Fund or Pension Plan, bolstering the financial security of its members.
Increased Health and Pension Contributions for Writing Teams
This provision ensures that writers on a team receive pension and health contributions as if they were a single writer, rather than dividing the cap. It also mandates full weekly minimum contributions for each writer on a team when working on a series, enhancing their benefits.
AI Regulations: Protecting Writers’ Rights
The 2023 WGA MBA introduces groundbreaking regulations governing the use of AI in MBA-covered projects:
- AI cannot write or rewrite literary material, ensuring that AI-generated content cannot replace human creativity.
- AI-generated material is not considered source material under the MBA, safeguarding writers’ credit and rights.
- Writers may use AI with company consent, but companies cannot mandate its use.
- Companies must disclose if materials contain AI-generated content.
- The WGA reserves the right to challenge AI exploitation if it conflicts with the MBA or other laws.
These AI regulations mark a significant step forward in protecting writers’ interests in an era of emerging technology.
Enhanced Terms for Screenwriter Employment
The 2023 WGA MBA introduces several improvements for screenwriters:
- Guaranteed 2nd step for first draft screenplays budgeted at 200% of minimum or less.
- Accelerated payment structure for flat deals.
- Increased compensation for streaming features with budgets of $30 million or more.
These enhancements provide writers with better financial security and compensation.
Transparency in Streaming Data
Improved Terms in High Budget Subscription Video on Demand (HBSVOD)
The agreement addresses the issue of foreign streaming residuals and introduces viewership-based streaming bonuses. Additionally, it requires companies to provide transparency by sharing data on hours streamed. This transparency will enable writers to negotiate fair compensation based on the actual performance of their work.
Minimum Terms for Advertising-Supported Streaming (AVOD)
High-budget programs for ad-supported streaming services will receive compensation terms similar to those for subscription streaming services, ensuring fair pay and protection for writers.
Staffing and Duration Provisions for Episodic Series
New provisions mandate minimum staffing and employment duration requirements for development rooms and regular writers’ rooms. These measures aim to improve job security and working conditions for writers.
Improved Options, Exclusivity, and Span Protections
The 2023 WGA MBA raises the salary limit for options and exclusivity protections and extends span protections to writers on limited series. These changes ensure writers receive fair compensation and job security.
The 2023 Writers Guild of America Memorandum of Agreement introduces transformative changes to the entertainment industry. The historic pay increases, AI regulations, and transparency in streaming data are poised to reshape how Hollywood operates. With improved compensation, protection of writers’ rights in the age of AI, and access to real data, writers are better equipped to negotiate fair terms and have a clearer view of their work’s performance. These changes represent a significant step forward in ensuring the well-being and livelihood of writers in the ever-evolving landscape of entertainment.
As the landscape evolves with improved compensation, AI regulations, and transparency, FilmHedge stands ready to provide funding solutions that empower filmmakers and writers to bring their creative visions to life. This agreement marks a new era in entertainment, and FilmHedge is committed to being a vital part of the journey, fostering innovation and ensuring that compelling stories continue to grace our screens.
