The prolonged strike that had significantly disrupted Hollywood's TV and film production is expected to end following a tentative agreement between writers and studios, announced late Sunday. The deal, set to last for three years, has yet to have its specifics disclosed but is believed to include increased royalties and minimum staffing levels for writers. Safeguards against the application of artificial intelligence in the industry are also part of this agreement.
The resolution came after five days of continuous negotiations involving top executives from Warner Bros. Discover, Disney, Netflix (NASDAQ:NFLX), and NBCUniversal Studios. Notably, the strike had seen actors standing alongside writers, hinting at a potential similar resolution for them in the future.
Studios had previously noted that the strike led to short-term financial savings in their earnings statements. However, they simultaneously acknowledged that the lack of new content could negatively impact their long-term financial performance.
In response to the news of the agreement, Monday's premarket trading witnessed a rise in media stocks. Paramount's shares surged by 4%, while Netflix saw a 0.6% increase. Amazon (NASDAQ:AMZN)'s stocks also advanced by 0.4%, Dish Network (NASDAQ:DISH) experienced a 1.4% gain, and both Disney and Comcast (NASDAQ:CMCSA) recorded gains as well.
Writers will only resume work once all aspects of the agreement have been finalized. The specifics of these provisions remain undisclosed at present, keeping the industry in anticipation.
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