New DGA Contract Changes WGA Dynamics, But Strike Continues: Analysis

The film and TV industry can breathe a sigh of relief as the Directors Guild reached a tentative agreement with the studios for a new contract, avoiding a three-guild strike that would have brought everything to a standstill. However, the Writers Guild of America (WGA) is still in the midst of their strike, now in its second month. Despite the DGA deal not bringing complete labor peace, it does put pressure on the WGA to follow suit in terms of wages, foreign streaming residuals, and artificial intelligence. The DGA deal does not address one of the WGA’s core issues, staffing mandates for writers on episodic TV shows, but it does offer a starting point for negotiations. The WGA and the Alliance of Motion Picture and Television Producers are willing to resume bargaining, but SAG-AFTRA’s contract talks with the AMPTP may complicate matters. The DGA deal offers a template for a deal with the WGA on minimum pay raises, but the two sides are still far apart on money issues. The DGA also made major gains in global streaming residuals and artificial intelligence, which could be the template for an eventual deal with both the WGA and SAG-AFTRA. The resolution of outstanding issues affecting writers only, including minimum staffing and full pension and health benefits, may determine how much longer the writers’ strike lasts.