$321 Million for Health Fund, Better Residuals, AI Meetings
Variety • • entertainment
Key Points:
- The Writers Guild of America (WGA) and major studios reached a four-year contract including a record $321 million contribution from studios to stabilize the writers’ health fund, which has faced deficits due to industry contraction and rising healthcare costs.
- Writers will face increased healthcare costs, with higher premiums, deductibles, and out-of-pocket maximums, while studios will raise their health contributions from 13% to 16.75% of a writer’s gross compensation, along with raising earnings caps for contributions.
- The deal includes a boost in streaming residuals, raising the “success bonus” for top streaming shows from 50% to 75%, and annual minimum rate increases between 1.5% and 3%, plus provisions to limit “free work” demands from producers.
- Key issues like TV staffing minimums remain unchanged from the 2023 strike agreement, and while the studios agreed to ongoing talks about AI, they declined to pay writers for AI training uses of their work.
- The WGA boards approved the deal unanimously, and members will vote on ratification between April 16 and April 24.
