It’s a three-year tradition in Hollywood: the industry’s major unions, studios and streamers come together to hammer out new labor deals. Each side has its own priorities and asserts them aggressively. Cue the clanking of sabers and the gnashing of teeth – until a deal is reached that pleases (and displeases) both parties.
But now the Alliance of Motion Picture and Television Producers, which negotiates on behalf of employers in the sector, is considering proposing a longer-term deal, according to sources. The Hollywood Reporter. Five-year contracts instead of three-year contracts are being considered following the 2023 strikes, which paralyzed the entertainment industry’s biggest companies for months.
To be clear, formal contract proposals have not yet been exchanged. Typically in entertainment collective bargaining, management and unions have informal conversations in the months before negotiations begin to get a sense of the other side’s position.
The WGA, DGA and SAG-AFTRA will all return to the negotiating table with AMPTP in 2026, with SAG-AFTRA launching the round of negotiations on February 9. The unions’ agreements will expire in the spring and summer of 2026.
It is worth noting, however, that a major change to the industry’s typical trading schedule is even being considered. Since at least the 1940s, three-year agreements have generally been the norm for entertainment industry unions, says Kate Fortmueller, an associate professor at Georgia State University who studies labor in Hollywood.
“This would represent a significant change in the cycles,” she adds. “I would also say it could make things more difficult; if you only do this every five years, there’s a lot more weight to bear every five years.”
AMPTP did not respond to a request for comment for this story.
A major unanswered question is how unions would react to such a proposal if it comes to fruition next year. The current three-year schedule has some advantages for labor groups: With a more frequent schedule of meetings with employers, they can respond more quickly to industry trends and have more opportunities to change their members’ working conditions.
This moment of negotiation could be particularly important in the era of generative AI. The Writers Guild of America, the Director’s Guild of America and SAG-AFTRA first addressed the then-burgeoning technology during their 2023 negotiations, but in the years since, AI tools — and how companies in the industry use them — have rapidly evolved. Anticipating this, the three unions negotiated biannual meetings with employers with the aim of discussing AI in their 2023 agreements. AI is expected to be a major issue for union groups again in 2026.
In other words, some major sweeteners may be needed to get major unions to seriously consider the idea. The WGA and SAG-AFTRA declined to comment. The DGA did not respond to a request for comment.
For the first time next year, negotiations for studios and streamers will be led by Gregory Hessinger, who took over from former AMPTP president Carol Lombardini earlier this year. Hessinger, a longtime employer-side labor lawyer, also has experience in this area: In the 2000s, he served as national executive director of both the Screen Actors Guild and the American Federation of Television and Radio Artists, before their merger in 2012.
Could Hessinger’s AMPTP disrupt the usual rhythm of union negotiations? This will depend on his work partners. Fortmueller says: “It seems like things are changing very quickly and the face of the industry is changing quite dramatically. This would be a major change for workers. The question is, is this to their benefit?”
