As reported by Variety, TV and film writer earnings plummeted by a staggering $603 million in 2023, marking a significant 32% decline from the previous year. This downturn was concurrent with a 148-day strike by the Writers Guild of America, amidst the end of the "Peak TV" era.
Reported for dues purposes, the writer earnings dropped to $1.29 billion in 2023, reaching the lowest level since the 2007- 08 writers' strike, when adjusted for inflation. Furthermore, the employment of working writers also experienced a sharp decline of 19.5%, with only 5,501 writers employed in 2023, the lowest number since 2014.
The WGA and SAG-AFTRA jointly initiated a momentous strike, halting most scripted production for half the year in pursuit of higher wages and protection from artificial intelligence. Simultaneously, the TV business contracted by 14%, with the number of shows decreasing from 600 in 2022 to 516 in 2023.
The Writers Guild of America West furnished this employment data in its annual report, which was disseminated to members recently. The report posited that the substantial declines were reflective of both industry contraction and the companies' unwillingness to negotiate a fair deal, culminating in a five-month strike. The strike concluded once the companies consented to address issues impacting the membership.
Unsurprisingly, the report explained that writers across all fields reported declines in employment and earnings during this tumultuous period. Following a previous strike that endured 100 days, the guild reported a 15% decline in overall earnings for 2008. The 32% drop in earnings for 2023 is expected to undergo revision next year, reflecting a somewhat smaller decline due to a lag in dues reporting.
Before the strike, writer employment reached a record high, with 6,835 writers reporting income in 2022, signifying an 80% increase from three decades ago. In nominal terms, writer earnings peaked in 2022, amounting to $1.89 billion. Adjusted for inflation, the height was reached in 2019.
In 2023, writers received $598.5 million in residuals, a 3.5% increase from the previous year.
Notably, due to the prolonged strike, residuals constituted a greater proportion of writers' total income than usual, accounting for 32% of overall writer compensation, as opposed to the typical 21-24%.
The report also highlighted the rapid transition to streaming, with streaming platforms accounting for a majority of all residuals in 2022 and 2023. Furthermore, there was a substantial increase in residuals from made-for-streaming shows, reaching $57.4 million in 2023, marking a 46% gain. This surge was attributed to both a higher volume of projects and improved terms for made-for-streaming shows under the 2020 contract.
Notably, the WGA refrained from issuing an employment report in 2023 due to the strike, combining two years of data in the report released recently. Moreover, the figures for TV writers do not encompass "overscale" income, which is not subject to dues.
During the strike, the WGA West extended hardship loans to its members from the strike fund and the Good & Welfare Fund.
The annual report revealed that members owed $6.2 million to these funds as of March 31st.
As a result of the strike, the WGA secured scale wage increases of 5%, 4%, and 3.5% over the three-year contract term, along with script fees for TV staff writers, full pension and health contributions for writing teams, and a guaranteed second draft for feature writers. The union estimated the total value of the deal at $233 million per year, surpassing the studios' final pre-strike offer by $147 million per year.
Furthermore, the agreement enforced minimum staff sizes for TV shows not written by a solo writer and implemented measures to safeguard against AI-written material diminishing writers' pay or credit. Additionally, the union secured a 50% residual bonus for the most-watched made-for-streaming TV shows.
Finally, film permit data indicated that the industry had already begun to contract before the unions initiated the strike.
The post-strike recovery has been slow, with reality TV production plummeting and scripted production plateauing below pre-strike levels.
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