Shares of Warner Bros. Discovery, Paramount Global, and Walt Disney saw positive gains on Thursday following the conclusion of the 118-day Hollywood actors’ strike. The SAG-AFTRA union, representing actors, officially suspended the strike and closed all picket lines after reaching an agreement with the Alliance of Motion Picture and Television Producers in the early hours of Thursday.
While specific details of the deal have not been disclosed, the union stated that it is valued at over $1 billion. The agreement, described as having an “extraordinary scope,” encompasses various elements such as minimum pay increases, provisions for consent and compensation to protect actors from the impact of artificial intelligence, and a streaming participation bonus.
Premarket trading saw a 2% rise in shares of Paramount Global (PARA), and a 3.8% increase in shares of Disney (DIS), which also reported earnings late on Wednesday. However, Netflix (NFLX) stock remained flat.
The conclusion of the 118-day actors’ strike eliminates a major obstacle for TV and streaming companies, allowing the industry to resume content production.
Previously, the Hollywood writers’ strike concluded in late September when the Writers Guild of America secured a tentative agreement with AMPTP. The ratified deal includes pay rate increases, a new residual structure for streaming services based on viewership, and regulations surrounding the use of artificial intelligence. As with the actors’ strike agreement, final approval is still pending, and comprehensive details will be revealed following the SAG-AFTRA board’s review of the tentative agreement.