Demonstrators carry signs during a screenwriter’s strike in New York City on May 2, 2023. (AFP via Getty Images)

Writers and producers announced, on Sunday, that a deal was reached with Hollywood studios to end the months-long Writers Guild of America strike.

"We have reached a tentative agreement on a new 2023 (minimum basic agreement), which is to say an agreement in principle on all deal points, subject to drafting final contract language," said a letter the Writers Guild of America sent to members.

"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 letter added.

The letter, which was viewed by AFP, did not provide specific information about the agreement. It mentioned that details were still being worked out and that the final decision would be in the hands of the members who halted their writing activities in early May.

"To be clear, no one is to return to work until specifically authorized to by the Guild. We are still on strike until then. But we are, as of today, suspending WGA picketing," it said.

This comes shortly after the WGA stated that both sides "met for bargaining on Friday and will meet again on Saturday," adding that they "continue to work toward a deal that writers deserve."

A flashback

In early May, thousands of film and television writers ceased their work, advocating for various demands such as improved compensation, increased recognition for successful show creators, and safeguards against the impact of artificial intelligence.

For months, they've stood in solidarity on picket lines outside various industry offices, including Netflix and Disney. In mid-July, striking actors joined their cause, resulting in a costly halt to the entertainment industry.

Following an extensive negotiation session on Thursday, the WGA communicated to its members that discussions would resume the following day. They encouraged "as many of you as possible to come out to the picket lines" on Friday, with protest hours extended into the early afternoon.

According to Deadline, top executives from Netflix, Disney, Universal, and Warner Bros Discovery have made personal appearances at this week's discussions.

Among their demands, writers have emphasized that their salaries have failed to keep pace with inflation. Moreover, the growth of streaming platforms has reduced the "residuals" they receive when a project they contributed to becomes a major success.

While studios have offered greater transparency regarding streaming audience metrics, they have not proposed adjustments to the method of calculating residual payments.

Writers have also pushed for restrictions on the use of artificial intelligence, fearing it could be used to partially replace their role in generating future film or show scripts, thereby further harming their compensation.

This issue continues to be a primary point of contention between the two parties, as reported in Hollywood trade publications last week.

Even if the writers reach a new agreement, the actors' strike is expected to continue, with no reported contract negotiations between the studios and the 160,000-member SAG-AFTRA guild since the actors' strike commenced.

However, both unions share numerous common demands, and industry insiders believe that a resolution to the WGA strike could potentially pave the way for a settlement in the actors' strike.