Abstract
The objective of this case is to highlight the various aspects of the ongoing struggle faced by writers in the entertainment industry, specifically focusing on the dynamics between renowned writers and lesser-known talents, and the increasing inclination of producers towards hiring artificial intelligence (AI) scriptwriters. The case has also highlighted the various aspects of the Writers Guild of America (WGA) strike and discussed the issue of the labour dispute with the Alliance of Motion Picture and Television Producers (AMPTP) in the USA. This research explores the dilemma where established writers often receive better pay and opportunities due to their brand image, while emerging writers struggle for recognition and fair compensation despite potentially superior skills. Additionally, the case delves into producers’ perspectives on cost-cutting measures, including the employment of AI to generate scripts, which presents a significant threat to the livelihood of human writers. The case has also investigated the potential impact of the strike on the entertainment industry. The main focus points of the strike, such as residuals from streaming media and concerns about the use of AI, were extensively discussed in the case. The strike seems to be the biggest threat and disruption to American television and film production since the COVID-19 pandemic in 2020. The significant impact of the strike was also explored, and the effect of the strike on movie production, including delayed or halted production, script limitations, changes in creative direction, financial implications and impact on industry reputation, has also been elaborated in the case. Additionally, the case has also thrown some light on the previous WGA strikes held in 1960, 1988 and 2007–2008 that highlighted the importance of demanding the rights for compensation of writers throughout history.
Keywords
Introduction
In the heart of Hollywood, where dreams are written into existence, a silent battle brews between the creators of stories and the gatekeepers of production. For decades, the Writers Guild of America (WGA) has stood as the voice of writers, ensuring fair wages, benefits and creative freedom. The WGA is like a group or association of professional writers in the United States (Wikipedia, 2023). For decades, the WGA has been the backbone of Hollywood’s creative workforce. With its two branches—WGA West (WGAW) and WGA East (WGAE)—the organization has tirelessly fought for fair pay, reasonable working hours and protections for screenwriters. The group helps the writers to assist in their work. They negotiate and enforce agreements that set the rules for treating and paying writers. These rules include the amount of remuneration they should get, the timings of their work and the benefits they should receive in the form of health insurance and retirement money. The WGA assists the writers by providing resources and offering programs to improve their skills, and it ensures that writers from different backgrounds are treated fairly. They raise the concerns and issues of the writers that impact the performance of writers and the entertainment industry.
Writers, from seasoned veterans to fresh talents, have long depended on the WGA to negotiate their rights with the powerful Alliance of Motion Picture and Television Producers (AMPTP), the organization representing major film and television studios. The AMPTP is like a group or organization that represents the big companies in the film and television industry in the United States (Alliance of Motion Picture and Television Producers, 2023). These companies make movies and TV shows. The AMPTP’s main goal is to protect the interests of the big companies in the entertainment industry. They work to ensure that the companies can make movies and TV shows that become profitable for them. They also want to ensure that the industry remains stable and successful. Their main aim is to protect the interests of the companies and keep the industry running smoothly. They negotiate with workers’ groups and make decisions about pay and working conditions. The AMPTP is responsible for negotiating with different groups, like unions or associations, on behalf of the companies. People who work in the film and television industry, such as actors, writers or crew members, want to ask for better pay or working conditions; they usually talk to the AMPTP (Alliance of Motion Picture and Television Producers, 2007). The AMPTP listens to their concerns and decides whether or not to accept their demands. Sometimes, they have disagreements with the workers’ groups, which leads to disputes or conflicts. When talks break down, writers have historically gone on strike to demand fair treatment, shaking the industry’s core. Negotiating with major studios and production companies through the AMPTP, the guild has secured essential benefits like health insurance and pension plans.
Yet, the industry is now at a crossroads. The rise of artificial intelligence (AI) in scriptwriting threatens to upend traditional storytelling. The introduction of AI in scriptwriting has transformed the playing field, offering studios a cheaper, faster alternative to human creativity (Behrooz, et al. 2024). AI can generate storylines in seconds, analyse audience trends and rewrite scenes based on predictive data. For producers, this technology represents an opportunity to cut costs and streamline production. For writers like Sarah and David, it is a direct threat to their livelihood, their artistry and the very essence of storytelling. While producers see AI as a cost-effective tool that can churn out scripts at an unprecedented pace, writers fear the loss of authenticity, emotional depth and—most crucially—their own livelihoods. The gap between top-tier writers and struggling newcomers has never been more evident, and the growing reliance on AI only widens this divide.
As tensions escalate, the question looms: will AI redefine the art of storytelling, or will writers fight to preserve the human touch that gives cinema its soul? This case study delves into the evolving power dynamics between writers and producers, the economic and ethical dilemmas of AI-driven scriptwriting and the uncertain future of those who bring stories to life.
The case begins by examining the WGA’s historical context and its critical role in advocating for writers’ rights. Then the transitions took place into the current state of the industry, discussing the stark disparities between the compensation and opportunities available to prominent versus lesser-known writers. This disparity is exacerbated by the rapid adoption of AI in scriptwriting, which is cost-effective, and raises questions about creativity, originality and the future of human employment in the industry.
The study further investigates the economic and ethical implications of producers’ reliance on AI. From an economic perspective, AI offers a cheaper and faster alternative to human writers, potentially leading to cost savings for producers. However, this comes at the cost of creative depth and authenticity that only human experience and emotion can provide. Ethically, the replacement of human writers with AI poses serious concerns about job security, fair compensation and the preservation of artistic integrity.
Established writers express concern over maintaining the artistic quality and emotional depth of scripts if AI were to dominate the industry. Emerging writers highlight their struggle for fair pay and recognition, emphasizing the need for a more equitable system that values talent over brand image. Producers, on the other hand, are caught between the need to reduce costs and the responsibility to uphold the artistic standards and ethical considerations of their productions.
Further, the case identifies key factors driving the producers’ shift towards AI scriptwriting, including the pressure to deliver high volumes of content quickly and the financial advantages of reduced labour costs. It also explores potential solutions to address the writers’ concerns, such as implementing fairer compensation structures that do not solely rely on brand recognition, and developing regulatory frameworks that ensure AI is used ethically and responsibly in scriptwriting.
The WGA Strike 2023
Sometimes, the WGA has to go on strike, which means that the writers stop working for a while to protect their rights. Strikes happen when the writers feel that they are not being treated fairly or are not getting what they deserve (Wilson, 2023). Strikes happen due to not getting paid properly for their work or having control over their creative ideas (Banks and Hesmondhalgh, 2016). The WGA has been sustained for a long time and has a history of fighting for writers’ rights. They want to make sure that writers are respected and treated well in the entertainment industry. So, in simple words, the WGA is a group that represents and supports writers in the United States. They have to ensure that the writers are treated fairly, paid well and can raise their voices for their rights. There is a disagreement among the writers and AMPTP, which led to the WGA strike 2023. It is a labour dispute between a group called the WGA, which represents around 11,500 writers, and another group called the AMPTP. This disagreement started on 2 May 2023, at a specific time, which was 12:01 AM PDT. Basically, the writers who create scripts and stories for movies and TV shows are part of the WGA, and they are having a conflict with the AMPTP, which is a group representing the big companies that make these movies and TV shows. The writers were not happy and felt dissatisfied related to their work. So, they decided to stop working as a way to protest and demand better treatment. This strike means that the writers are not working on new projects during this time, and it is a way for them to show their dissatisfaction and try to get the companies to listen to their concerns. The strike started on 2 May 2023. In simple words, the WGA 2023 strike is a disagreement between the writers and the companies that make movies and TV shows. The writers are not working because they want to be treated in a fair and equitable manner. The writers wanted fair remuneration at par with the authors who are working on broadcast shows. The writers wished that AI is used only as a tool to assist them in their work, not to replace them completely. In May 2020, a collective bargaining agreement called the minimum basic agreement (MBA) was established. This agreement set a minimum wage for writers who worked in television and film. However, the MBA only applied to writers of shows broadcast on television and not those created specifically for streaming platforms. They have also demanded equitable and fair remuneration for the writers involved in streaming services.
Main Issue
The entertainment industry is currently facing a significant dilemma that revolves around two primary issues: the disparity in recognition and compensation between established and emerging writers, and the increasing reliance on AI for scriptwriting by producers aiming to cut costs.
Disparity in Writer Compensation and Opportunities
Brand image versus talent: One of the core issues is the significant gap in pay and opportunities between well-known, established writers and lesser-known, emerging writers. Established writers, due to their brand image and past successes, often receive higher pay and more lucrative opportunities regardless of the current quality of their work. In contrast, many talented emerging writers struggle to gain recognition and fair compensation, even if their work is of a higher quality. This creates a significant imbalance in the industry, where success is more reliant on reputation than on current merit or talent.
Economic pressures on emerging writers: emerging writers often face financial instability due to the lack of fair compensation and consistent opportunities. This economic pressure can stifle creativity and force talented writers out of the industry, leading to a loss of fresh and innovative content (Wilson, 2023). Furthermore, the current compensation structures do not adequately reward the efforts of these writers, exacerbating the issue of income inequality within the profession (Green, 2023).
Producers’ Cost-cutting Measures and AI Integration
Economic Motivation for AI
Producers are increasingly looking to AI to generate scripts as a cost-cutting measure. AI scriptwriters can produce content more quickly and at a lower cost compared to human writers. This financial incentive is particularly appealing in an industry that demands a high volume of content at a fast pace. However, this trend raises significant concerns about the future of human writers in the industry.
Quality and Creativity Concerns
While AI can generate scripts, there are concerns about the quality and creativity of AI-produced content. Human writers bring unique experiences, emotional depth and creative nuances that AI cannot replicate. The over-reliance on AI for scriptwriting risks diminishing the artistic and narrative quality of films and television shows.
Ethical Considerations
The integration of AI into scriptwriting also poses ethical issues. Replacing human writers with AI can lead to significant job losses and further economic insecurity for writers. Moreover, there are concerns about the creative and ethical implications of allowing AI to take over a role traditionally filled by humans, particularly in a field that thrives on human creativity and expression.
Specific Disputes in WGA Strike, 2023
Streaming Residuals
One of the main points of contention in the ongoing WGA strike is the residuals from streaming services. The WGA argues that writers are receiving a smaller share of revenue from streaming platforms compared to traditional broadcasting, leading to decreased average incomes for writers over the past decade.
AI in Scriptwriting
The WGA demands that AI can be used only as a supportive tool for writers, not as a replacement. There is fear in the minds of writers that AI could eventually replace human writers, leading to job losses and a decline in the quality of content produced.
Mandatory Staffing and Duration of Employment
The WGA has proposed mandatory staffing levels and specific durations of employment for writers on all shows, which was resisted by AMPTP, arguing that it imposes unnecessary constraints and costs on productions (Chan and Cole, 2023).
Pension and Health Care Benefits
Another critical issue is the provision of pension and health care benefits. The WGA is advocating for each member of a writing team to receive their own benefits, but this proposal has been met with resistance from the AMPTP.
Fair Compensation Versus Cost-cutting
Fair Compensation and Opportunities
On one side of the dilemma is the principle of ensuring fair compensation and opportunities for writers. Established writers often command higher pay due to their brand image and past successes. While this system rewards past achievements, it may undermine the potential and creativity of emerging writers who, despite having significant talent and innovative ideas, struggle with inadequate pay and fewer opportunities. The emphasis on brand image perpetuates a cycle where new talent is undervalued and potentially pushed out of the industry due to financial instability. This raises ethical concerns about equity and fairness in the creative field.
Economic Incentives for AI and Cost-cutting
The other side of the dilemma is the economic reality faced by producers and studios. The entertainment industry is driven by the need to generate profit, and cost-cutting measures, including the use of AI for scriptwriting, offer substantial financial benefits. AI can produce scripts quickly and at a lower cost compared to human writers, aligning with the industry’s drive for efficiency and profitability. However, this cost-saving strategy presents a risk of devaluing human creativity and job loss, raising questions about the long-term impact on content quality and the livelihood of writers (DePillis, 2023).
Creative Integrity Versus Technological Efficiency
Creative Integrity
Human writers bring unique perspectives, emotional depth and creative insights that are difficult for AI to replicate (Nantheera and David, 2022). The integrity of storytelling relies heavily on human experiences and nuances that AI cannot fully capture. The dilemma here is whether the entertainment industry should prioritize maintaining the depth and richness of human-created content or whether it should embrace technological advancements that could streamline production processes.
Technological Efficiency
AI offers the advantage of technological efficiency, enabling rapid content creation and reducing production costs (Coyle, 2023). While AI can support the writing process, its role in replacing human writers raises concerns about the erosion of creative quality. The dilemma revolves around finding a balance between leveraging technological tools for efficiency and preserving the human elements essential to compelling storytelling.
Economic Impact Versus Ethical Considerations
Economic Impact
The use of AI and cost-cutting measures is driven by economic factors, including reducing production expenses and increasing profit margins. From a producer’s perspective, these measures are practical and necessary to stay competitive in a challenging market (Selsky, 2023). However, the economic benefits of AI come with potential drawbacks, such as job displacement and the potential decline in content quality, which could ultimately impact the industry’s reputation and viewer engagement (Watercutter, 2023).
Ethical Considerations
Ethically, the dilemma involves addressing the potential job losses and reduced income for human writers if AI becomes the dominant force in scriptwriting. The industry must consider the broader implications of replacing human labour with technology and the value of creative work. Ensuring that writers receive fair compensation and maintaining the human touch in storytelling are important ethical concerns that must be weighed against the financial advantages of AI.
Impact on Entertainment Industry
The WGA strike that commenced on 2 May 2023 has had far-reaching consequences on the entertainment industry, disrupting various facets of film and television production. First, the strike has significantly impacted movie production by causing delays and halts in the filming process (Arts University Bournemouth, 2024). Without the writers’ involvement, scripts could not be completed or revised, resulting in stalled projects. This disruption extended to both ongoing productions and planned future releases, leading to a backlog of unfinished films and TV shows. Furthermore, the strike has led to limited script availability, forcing filmmakers to work with existing scripts or halt production altogether. This constraint has affected the creative direction of projects, often leading to compromises in storytelling and character development (Barnes and Cieply, 2008). Financially, the strike has been burdensome, with studios incurring substantial losses due to the paused production schedules, and many crew members and associated businesses experiencing economic setbacks (Knapp, 2023). Moreover, the prolonged strike has tarnished the reputation of the entertainment industry, highlighted the underlying labour disputes and raised questions about fair treatment and compensation for writers and other creative professionals. This negative impact on the industry’s image could have lasting effects on recruitment, collaboration and audience perception (Peter and McIntosh, 2023). In summary, the WGA strike has caused significant delays, financial strain, creative compromises and reputational damage to the entertainment industry, underscoring the need for a resolution that addresses writers’ concerns and ensures the smooth functioning of the sector (Liu, 2023).
Previous Strikes
There were crucial chapters in the journey of writers seeking fair treatment and appreciation for their craft in the ever-changing world of entertainment. In the year 1960, a remarkable strike took place. It lasted for a substantial 21 weeks, and during this time, writers stood united in their demand for better compensation and improved working conditions (Banks, 2010). Their perseverance bore fruit as the strike brought significant changes. One notable achievement was the establishment of residuals for television reruns. These residuals ensured that writers received rightful compensation when their creations were aired again, paving the way for future negotiations that would shape the industry. Then, in the year 1988, another significant strike unfolded. This time, it lasted for 22 weeks. The focus of this strike was on compensation issues faced by writers working in television and film. They sought fair remuneration for their valuable contributions to the emerging home video market. Their determination paid off, as the strike resulted in increased residual payments. These payments ensured that writers received their due share when their works were distributed through the growing medium of home videos. But the journey did not end there!! In the years 2007 to 2008, the WGA faced yet another challenging period. For a gruelling 100 days, writers embarked on a strike that revolved around the world of digital media. They sought justice and fair compensation in the face of new platforms such as internet distribution and other forms of emerging media. Their efforts were not in vain, as their united voice led to a new agreement. This agreement addressed the pressing issue of compensation in the digital age, ensuring that writers’ valuable contributions to these modern platforms were recognized and rewarded.
These strikes were monumental moments in the history of the WGA. They symbolized the unwavering spirit of writers who advocated for their rights, fair treatment and acknowledgment of their work. These courageous individuals fought for their fellow writers, pushing the boundaries of the industry and striving for a more equitable future.
The WGA has experienced three previous strikes: in 1960, 1988 and 2007–2008. The 1960 strike was about writers wanting better pay and more control over their creative work. They also wanted to make sure they received money when their work was reused, like in reruns. This strike led to the establishment of the first MBA between writers and producers, setting a foundation for fair treatment and compensation. The 1988 strike, which lasted 22 weeks, was focused on residuals for TV shows and movies shown on cable and home video. Writers wanted a fair share of the profits from these emerging platforms. This strike caused significant disruptions in the entertainment industry and highlighted the need for updated compensation models. The 2007–2008 strike, which lasted 100 days, centred on compensation for digital content. With the rise of online streaming and digital distribution, writers wanted to ensure they received fair pay for their work used on these platforms. This strike brought attention to the changing landscape of the entertainment industry and the importance of adapting contracts to new technologies. These previous strikes demonstrate the WGA’s ongoing efforts to secure fair treatment and compensation for writers in an evolving industry (Putnam and Fuller, 2014).
Recent Development
On 14 July 2023, a significant labour dispute rocked Hollywood as the American actors’ union, known as Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA), took a stand and initiated a strike (Ivanova, 2023). The catalyst for this action was an ongoing conflict with the AMPTP, representing film and television studios, over crucial issues concerning fair compensation, the use of AI and the burdens resulting from the industry’s shift to self-taping. What made this strike particularly noteworthy was that it coincided with a WGA strike, where writers were also advocating for their rights and fair treatment (Reuters, 2023). This marked the first time in more than six decades that actors and writers joined hands in a labour dispute, emphasizing the gravity of the situation. As the strike unfolded, it brought the American television and film industries to a standstill, causing the most significant disruption since the impact of the COVID-19 pandemic in 2020 (Feldman, 2019). Negotiations between SAG-AFTRA and the AMPTP reached an impasse, leading actors to take strike action in pursuit of a transformative deal that would address their concerns (Bob, 2023). During the strike, actors refrained from engaging in film or television productions and abstained from promotional work, press junkets and film premieres (Dani and Lois, 2023). While some exemptions were allowed for specific types of work, picket lines emerged at various locations, including New York, Los Angeles, Orlando, Honolulu and Atlanta. Amid the labour tensions, both SAG-AFTRA and the AMPTP released statements reflecting their respective positions on the negotiations (The New York Times, 2023). Discrepancies in salary increases and the utilization of actors’ likenesses through AI emerged as significant points of contention (Flint and Krouse, 2023). Despite the challenges, SAG-AFTRA pressed forward, expanding the list of films eligible to shoot under strike rules. The union also staged ‘Quick Photo Op’ strikes at other locations, demonstrating their commitment to the cause across the country (Tang et al., 2025). Throughout the labour dispute, SAG-AFTRA leaders and members remained steadfast in their pursuit of a just and equitable resolution. The strike has not only highlighted the critical issues facing actors and writers in the entertainment industry but also demonstrated the power of solidarity and collective action in advocating for the rights and well-being of the creative workforce (Conover, 2023).
Conclusion
The study concludes by emphasizing the need for a balanced approach that harmonizes technological advancements with the preservation of human creativity and fair labour practices. Recommendations include fostering dialogue between writers, producers and technological developers to create a mutually beneficial ecosystem. Encouraging transparency in AI usage, providing training and development opportunities for emerging writers, and establishing industry-wide standards for compensation and recognition can help mitigate the disparities and ethical concerns highlighted in the research.
The primary findings reveal that the writers’ demand for fair compensation, especially concerning residuals from streaming services and the protection of their creative roles from AI encroachment, underscores a broader struggle for equitable treatment and recognition within the industry. The decline in income for many writers, contrasted with the substantial financial gains for studios from AI efficiencies, emphasizes the need for a revised approach to compensation and contract agreements.
The impact of the strike, marked by halted productions, limited script options and potential long-term consequences for industry reputation, illustrates the profound effects on both the creative process and the financial stability of the entertainment sector (Los Angeles Times, 2023). Historical context from previous strikes, such as those in 1960, 1988 and 2007–2008, reinforces the ongoing relevance of these issues and the persistent need for fair negotiations and adaptations to new industry realities.
Addressing this dilemma requires a nuanced approach that considers both immediate economic pressures and long-term implications for creativity and employment. A resolution should involve transparent and open dialogue between all parties, focus on achieving fair compensation for writers while integrating technological advancements in a way that enhances credibility rather than diminishes the human element of storytelling.
Ultimately, the resolution of this dilemma will shape the future of the entertainment industry, defining how creative contributions are valued and how technological innovations are harnessed. By prioritizing both equity and innovation, the industry can navigate this complex landscape and foster a more balanced and sustainable creative environment.
Footnotes
Acknowledgements
The authors would like to thank the anonymous reviewers and the editor for their insightful comments and suggestions. The authors extend their deepest thanks to Mr Rakesh Chhonkar, Manager, La Renon Healthcare Private Ltd., for his unwavering support and invaluable assistance in writing the case. His expertise and experience in the corporate and dedication help us to navigate through complex concepts and provide valuable insights into the case.
Declaration of Conflicting Interests
The authors declared no potential conflicts of interest with respect to the research, authorship and/or publication of this article.
Funding
The authors received no financial support for the research, authorship and/or publication of this article.