The Directors Guild of America (DGA) has reached a tentative four-year agreement with major Hollywood studios and streaming services, the union announced on Wednesday. The deal, which must be ratified by DGA members, includes significant gains in wages, streaming residuals, and protections against the use of artificial intelligence.
Key Terms of the Agreement
The tentative contract, negotiated with the Alliance of Motion Picture and Television Producers (AMPTP), covers directors, assistant directors, and associate directors. It provides for a 4.5% wage increase in the first year, followed by 4% increases in each subsequent year. The deal also includes a new structure for streaming residuals that ties payments to viewership performance, a major priority for the union.
AI Protections
For the first time, the contract includes provisions addressing the use of artificial intelligence in filmmaking. The DGA secured language that ensures AI cannot be used to replace directors or other covered crew members, and that any AI-generated content must be clearly labeled. The union also obtained a commitment from studios to meet quarterly to discuss AI developments and their impact on the industry.
“This agreement ensures that our members are protected in the face of rapid technological change,” said DGA President Lesli Linka Glatter. “We have secured meaningful guardrails around AI that will preserve the creative role of directors.”
Streaming Residuals
The deal overhauls the residual system for streaming content, which has been a point of contention in recent labor negotiations. Under the new terms, residuals for streaming films and series will be calculated based on a formula that includes the number of subscribers and viewership data. This is expected to increase payments to directors as streaming continues to dominate the industry.
“We needed a system that reflects the reality of how audiences consume content today,” said DGA Negotiations Chair Thomas Schlamme. “This deal does that, and it will provide our members with fair compensation for their work on streaming platforms.”
Industry Reaction
The AMPTP praised the agreement as a “fair and balanced” outcome. “This contract recognizes the invaluable contributions of directors while allowing our industry to continue to innovate and grow,” the group said in a statement.
The deal comes as Hollywood faces ongoing labor tensions, with the Writers Guild of America still on strike and the Screen Actors Guild also in negotiations. The DGA’s agreement could set a pattern for other unions, but the WGA has indicated it will continue to push for its own demands.
Ratification by DGA members is expected to take several weeks. If approved, the contract will run through June 30, 2029.
