Hollywood directors call off strike after signing deal with studio

Hollywood studios have reached a tentative contract agreement with the union representing directors, easing fears of a shutdown as the industry grapples with a writers’ strike and prepares to enter labor negotiations with screen actors. doing.

The Directors Guild of America said it had reached a settlement with Hollywood studios early Sunday on some of the most contentious issues facing the industry, including streaming royalties and protecting jobs from advances in artificial intelligence.

“We have made a truly historic agreement,” said John Avnet, chairman of the DGA’s negotiating committee.

The 19,000-member DGA said the agreement achieved a “substantial increase” in royalties for theatrical programs on streaming services. The profit represented a 76 percent increase in foreign residuals for the largest streamers, which translated into a $90,000 profit per one-hour episode over three years. Those royalties will be determined based on the number of international subscribers to the streaming service.

The DGA said both sides also agreed that “Generative AI cannot replace the duties” performed by directors. The union will vote on the contract proposal on Tuesday.

The move comes as a strike by the 11,500-member Writers Guild of America enters its second month after failing to reach an agreement with the Alliance of Motion Picture and Television Producers, a group representing Hollywood studios and streamers. Has spread in.

Like directors, some of writers’ biggest concerns revolve around streaming royalties and the use of AI. The actors’ union, SAG-AFTRA, is set to enter talks with the studios later this week, with AI also expected to be a focus of the discussions.

In recent weeks, studio executives have expressed hope that the directors can reach an agreement, which will then serve as a template for agreements with writers and actors. The writers union has no talks scheduled with the studio.