Chapter 02

The Strikes of 2023

The WGA and SAG-AFTRA staged concurrent strikes — the first time writers and actors struck together since 1960. The result: historic contract gains and an industry transformed.

148
Days of WGA Strike
118
Days of SAG Strike
$5B+
Economic Impact
-17%
Entertainment Jobs Lost

Landmark Contract Wins

Both unions achieved significant gains that are reshaping Hollywood's labor framework for the streaming era.

💰

Streaming Residuals

WGA secured a viewership-based streaming bonus: if a show is viewed by 20%+ of subscribers within 90 days, writers get a 50% residual bonus. SAG got a similar "streaming success bonus."

📈

Major Wage Increases

SAG: 7% immediate hike (largest in 40 years), then 4% and 3.5%. WGA: 5% immediately, then 4% and 3.5%. Background actors got 11% bump.

👥

Minimum Staffing

WGA won historic minimum writers' room staffing requirements: 3 writers for short series, up to 7 for longer shows. Half must stay through production.

🤖

AI Protections

WGA: AI can't write or rewrite scripts. Studios can't require AI use. SAG: Consent and payment required for digital replicas.

🌍

Foreign Residuals

WGA deal bases foreign residuals on international subscriber counts (tiered at 20M/45M/75M subs), yielding bigger payments for global hits.

✍️

Staff Writer Gains

For the first time, staff writers will receive script fees (previously excluded), strengthening writing as a sustainable career path.

AI Guardrails Explained

The most transformative aspect of the new contracts may be the AI provisions — setting precedents for how creative industries will navigate technological disruption.

WGA AI Protections:

  • AI cannot write or rewrite literary material
  • AI-generated text isn't considered "source material"
  • Writers can use AI if company permits, but studios cannot require AI use
  • Studios must disclose if material given to writers was AI-generated
  • Guild reserves right to assert that training AI on scripts violates contract

SAG-AFTRA AI Protections:

  • Studios must obtain "clear and conspicuous" consent for digital replicas
  • If digital double replaces actor, actor must be paid for those days
  • Background actors whose scans are reused as principals get upgraded pay
  • Material alterations of performance digitally require consent

Key AI Contract Quote

"AI can't write or rewrite literary material, and AI-generated material can't be used to undermine a writer's credit or separated rights."

— WGA 2023 Contract Summary

Cultural Shifts

Renewed Labor Solidarity

The strikes galvanized union activism in Hollywood and beyond. A new generation of actors and writers got a crash course in labor organizing. The WGA and SAG openly supported each other, with cross-guild coordination that may carry into 2026 negotiations.

Teamsters and IATSE crew refused to cross picket lines. Hotel workers and auto workers showed solidarity. Hollywood became part of the broader "hot labor summer" of 2023.

Management Recalibration

The strikes forced studios to concede more than initially planned. CEOs had to step directly into negotiations late in the game. Trust was eroded — early rhetoric about "starving out" writers created lasting bitterness.

Going forward, studios will need to invest in repairing relationships. One business school professor noted they "underestimated the rise in leverage on the side of labor."

"People were in such an existential crisis that they were willing to say 'we have to strike'... and they stayed together for so long."

— Meredith Stiehm, WGA President

Economic Aftermath

$5B+
Direct economic losses to CA
25,000
Entertainment jobs lost (May-Oct '23)
142K → 117K
LA entertainment employment swing

The immediate impact was clearly negative — a "lost year" of production. Small businesses that service productions (caterers, rental houses, post-production studios) were badly hurt. Some never recovered.

Looking Ahead to 2026

Both contracts expire in mid-2026 (WGA in May, SAG in June). The next round of negotiations will test whether the new terms hold up — and whether the industry has truly internalized the lessons of 2023.

Key questions for the next cycle:

  • Will streaming residual bonuses actually pay out at scale?
  • How will AI technology advance, and are current guardrails sufficient?
  • Can studios maintain content investment while honoring higher labor costs?
  • Will guilds and management come to the table earlier to avoid another catastrophic shutdown?

Contract Expiration Timeline

May 2026 — WGA contract expires

June 2026 — SAG-AFTRA contract expires

2024-25 — IATSE/Teamsters deals ratified

For the first time in years, there are no strikes on the horizon until at least 2026.