The 2023 Hollywood strike wasn’t just another protest—it was a turning point for the industry!
- 6 months long
- $6.5 billion lost
- 45,000 workers impacted
Led by the Writers Guild of America (WGA) and later joined by the Screen Actors Guild‐American Federation of Television and Radio Artists (SAG-AFTRA), this battle was about far more than fair wages—it was a fight for the future of Hollywood in an era shaped by streaming and the rise of artificial intelligence (AI).
Residuals: the roots of Hollywood strike
The Hollywood strike, which began on May 2, 2023, resulted from growing tensions between creatives and major studios. Traditional TV residuals provided steady income through reruns, but streaming platforms offered minimal payouts, leaving many writers and actors struggling. Rising living costs in cities like LA and New York only worsened the situation.
Streaming also disrupted earnings—while the Friends cast still profits from syndication, a Netflix writer might get a large upfront payment but little in residuals, even for a hit show.
AI further fueled concerns. SAG-AFTRA fought to prevent studios from digitally replicating actors without consent, while writers feared AI could replace or diminish their roles.
The impact of the strike on the movie industry
The 2023 strike lasted 191 days, surpassing the 100-day WGA strike of 2007-08, making it Hollywood’s longest. It cost California an estimated $6.5 billion, impacting wages, productions, and businesses like catering and transportation.
Major films like Mission: Impossible 8 and Avatar 3 were delayed, while TV shows like Stranger Things faced months-long setbacks. Over 45,000 industry workers were left jobless, many struggling financially.
“A lot of writers went into [the strike] broke…It actually shows you what a bad situation we were in.” said WGA President Meredith Stiehm.
Raising salaries and streaming residuals: a long-term resolution in an AI-driven world?
After months of negotiations, the WGA reached a tentative agreement with the Alliance of Motion Picture and Television Producers (AMPTP) on September 27, 2023, followed by SAG-AFTRA on November 8, 2023.
Writers and actors secured higher streaming residuals, ensuring a fairer share of revenue. Both unions won significant wage increases—5% immediately, followed by 3.5% and 3% in the coming years.
The agreements also set strict AI regulations to protect creative rights. AI cannot be credited as a writer or used to diminish a writer’s credit, and any AI-generated material shaped by a writer remains the writer’s work.
The 2023 Hollywood strike highlighted the need for fair pay in the streaming age. It also set a precedent for regulating emerging technologies like AI. In the short term, it caused major disruptions: many projects were shelved or even abandoned, actors lost income, etc. In the long term, we can hope that it will have laid the foundation for a more sustainable and equitable future for Hollywood’s creative workforce.
