Netflix, Amazon Stocks Rise With End in Sight for Hollywood Writers Strike

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An agreement has been reached to cease the labor action that has shut down production of TV shows and movies.

Hollywood writers and studios reached a tentative agreement to end the monthslong strike that has shut down production of TV shows and movies.

The two sides said they have reached a deal in statements late Sunday, without giving further details. The agreement is for three years and includes increased royalties for writers, minimum staffing for writers, and protections against the use of artificial intelligence, The Wall Street Journal reported, citing unidentified people familiar with the talks.

The breakthrough in negotiations came after five consecutive days of talks that involved the chief executives of Warner Bros. Discovery, Disney, Netflix, and NBCUniversal Studios. Actors joined writers in the strike, and the deal with writers could pave the way for a resolution with actors as well. In earnings reports over the past few weeks, studios said the strike had been saving them money in the short term, but that it would be damaging in the longer term when they have less content.

read this Shares of Paramount fell 1% at the market open after rising in premarket trading. Netflix climbed 1.3%, and Amazon advanced 0.8%. Dish Network slipped 1.4%, while Disney and Comcast stocks also fell.Write to Brian Swint at brian.swint@barrons.com

 

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