Hollywood writers have been on strike since May.
Getty Images
Hollywood writers and studios reached a tentative agreement to end the monthslong strike that has shut down production of TV shows and movies.
The two sides said they have reached a deal in statements late Sunday, without giving further details. The agreement is for three years and includes increased royalties for writers, minimum staffing for writers, and protections against the use of artificial intelligence, The Wall Street Journal reported, citing unidentified people familiar with the talks.
The breakthrough in negotiations came after five consecutive days of talks that involved the chief executives of
Warner Bros. Discovery,
Disney,
Netflix,
and NBCUniversal Studios. Actors joined writers in the strike, and the deal with writers could pave the way for a resolution with actors as well.
In earnings reports over the past few weeks, studios said the strike had been saving them money in the short term, but that it would be damaging in the longer term when they have less content.
Shares of Paramount (PARA) fell 1% at the market open after rising in premarket trading. Netflix (ticker: NFLX) climbed 1.3%, and Amazon (AMZN) advanced 0.8%.
Dish Network
(DISH) slipped 1.4%, while Disney (DIS) and
Comcast
(CMCSA) stocks also fell.
Writers won’t return to work until the details of the agreement have been hammered out.
Write to Brian Swint at [email protected]
Read the full article here