A preliminary agreement was reached between Hollywood writers and studios late Sunday, potentially ending a months-long strike that has disrupted TV and movie productions. The details of this three-year agreement, which includes increased royalties, minimum staffing levels for writers, and safeguards against artificial intelligence exploitation, were not publicly disclosed but were shared by sources close to the negotiations.
The breakthrough came after five days of intense discussions involving top executives from Warner Bros. Discover, Disney, Netflix (NASDAQ:NFLX), and NBCUniversal Studios. The strike also involved actors, suggesting the possibility that this agreement could pave the way for resolving disputes with them too.
The studios have previously noted in their earnings reports that while the strike resulted in short-term savings, it also threatened their long-term prospects due to an expected decrease in content production.
In Monday's premarket trading following the announcement of the agreement, Paramount's shares saw a 4% increase, while Netflix shares rose by 0.6%. Amazon (NASDAQ:AMZN)'s shares also experienced an upward trend with a rise of 0.4%. Other companies such as Dish Network (NASDAQ:DISH) reported a 1.4% increase and both Disney and Comcast (NASDAQ:CMCSA) noted gains in their stock values.
However, the writers are not expected to return to work immediately. They will first wait for all aspects of the agreement to be thoroughly finalized before resuming their duties.
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