WGA’s Tentative Deal: Higher Pay, Streaming Bonuses, and AI Protections
The Writers Guild of America (WGA) has reached a tentative four-year agreement with major studios and streamers that would raise pay for streaming work, bolster the union’s strained health and pension funds, and place new limits on how writers’ work can be licensed for AI training. The outline of the pact surfaced late Saturday in industry reports and from union sources, but the contract remains tentative and must be ratified by members before it becomes official. Until then, the terms remain tentative, and Hollywood will be watching closely to see whether this pact shapes the next round of talks with actors and directors.
The deal includes a 5% wage increase in the first year, followed by 3% in each of the three remaining years. A key victory for the WGA is the revitalization of the health plan, which bled $122 million cumulatively in 2023 and 2024. The studio source said the caps hadn’t changed in decades and is a key reason why the writers’ deal was closed in just three weeks. Additionally, the WGA told members in its summary that the Paid Parental Leave fund “will still maintain sufficient funding to pay out benefits.”
On AI, the agreement builds on the WGA’s 2023 contract, which was the first major Hollywood guild agreement to address AI directly. However, a significant loophole remains: a studio can route AI-written scripts through a non-signatory production entity and remain outside the contract’s coverage. The new deal aims to place new limits on how writers’ work can be licensed for AI training, though details are still emerging.
With both deals in place, the Directors Guild of America formally opened talks with the AMPTP on May 11, the last major Hollywood guild without a 2026 contract. As the industry awaits ratification, the WGA’s tentative agreement could set a precedent for upcoming negotiations with actors and directors, particularly on AI protections and streaming residuals.
Shimanta Das 
