Directors Guild Reaches Tentative Deal With Studios And Streamers

Published Jun 4, 2023 11:20 AM

A sign above a doorway on a marble-faced building reads: "Directors Guild of America."

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The Directors Guild of America has reached a tentative agreement with Hollywood studios and streamers over a new three-year labor contract, as the writers strike has entered its second month.

The union's negotiating committee announced Saturday night that it had struck a deal with the Alliance of Motion Picture and Television Producers (AMPTP). DGA leaders said they had made gains on wages and streaming residuals while adding protections for its members against technology like artificial intelligence.

“We have concluded a truly historic deal,” said Jon Avnet, chair of the DGA’s Negotiations Committee in a statement, which went on to say:

“It provides significant improvements for every Director, Assistant Director, Unit Production Manager, Associate Director and Stage Manager in our Guild. In these negotiations we made advances on wages, streaming residuals, safety, creative rights and diversity, as well as securing essential protections for our members on new key issues like artificial intelligence — ensuring DGA members will not be replaced by technological advances. This deal would not have been possible without the unity of the DGA membership, and we are grateful for the strong support of union members across the industry.”

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Contract details from the DGA

Wages and benefits: A 5% increase in the first year of the contract, 4% in the second year and 3.5% in the third year. Additional 0.5% to fund a new parental leave benefit.
Global streaming residuals: Substantial increase in the residuals for dramatic programs made for SVOD by securing a new residual structure to pay foreign residuals. The result is a 76% increase in foreign residuals for the largest platforms so that residuals for a one-hour episode will now be roughly $90,000 for the first three exhibition years.
Artificial intelligence: Agreement confirming that AI is not a person and that generative AI cannot replace the duties performed by members.
Non-dramatic programs: Established the industry’s first-ever terms and conditions for Directors and their teams on non-dramatic (Variety and Reality) programs made for SVOD. Improved residuals and for the first time, Associate Directors and Stage Managers will now share in the residuals.
High budget AVOD terms and conditions: Achieved the industry’s first-ever terms, creative rights protections, working conditions and residuals for scripted dramatic projects made for free to the consumer streaming services such as Freevee, Tubi and Roku. Unit Production Managers and Assistant Directors will share in the residuals.
Feature directors: Historic first-time compensation for the months of “soft prep” Feature Directors currently perform for free prior to the start of the Director’s official prep period.
Episodic directors: For Pay TV and SVOD, Episodic Directors won expanded paid post-production creative rights; and gained an additional guaranteed shoot day for one-hour programs – the first additional day added in more than 40 years.
Reduction in hours: Unprecedented reduction in the length of the Assistant Director’s day by one hour.
Safety: Achieved concrete safety advancements including the first-ever pilot program to require the employment of dedicated safety supervisors; expanded safety training programs for both Directors and their teams, and the ban of live ammunition on set.

What's next

A ratification vote is scheduled for Tuesday. Meanwhile, a strike by the Writers Guild of America over their labor contract with streamers and producers has entered its second month.