WGA Strike: How Does The DGA Deal Impact Their Odds

Studios reached a tentative agreement with the Directors Guild of America (DGA) last week, in the first piece of positive news for the entertainment industry in weeks. The members of the DGA are expected to vote in favor of the new deal this week, which will bring higher wages, more lucrative residuals, and protections against AI-generated content. The new three-year deal could be ratified on Tuesday, June 6th. DGA leadership praised the deal, referencing the "unprecedented gains" they were able to negotiate. Is this deal a precursor to a contractual win for the writers? 

Last month, sportsbooks set the over/under for a WGA strike at 99.5 days. Six weeks into their strike, there has been zero movement between the two sides. The last time both sides were even in the same room was May 1st and they left that meeting "far apart" on major sticking points including wages, residuals, and the size of writers' rooms. When the writers went on strike 15 years ago, that conflict lasted 100 days, which explains why oddsmakers set the initial over/under at 100 days. But it appears that this conflict, at least in the eyes of sportsbooks, could linger much longer than the 2007 strike. 

How Long Will The WGA Be On Strike

The Studios made serious concessions to avoid a Directors' strike, and have now successfully split up a potential alliance between the writers, directors and the SAG-AFTRA. Their "divide and conquer" technique is one to monitor, particularly in the futures market. So far, the strategy has increased the timeline for a resolution between the studios and the WGA.