OpenAI’s $90 Billion Valuation, FTC Takes on Amazon, and The Recession is Coming | Prof G Markets

Negotiation Results

The recent writers' strike negotiations have sparked discussions about the effectiveness of the outcomes. Scott Galloway highlights that while the writers achieved some gains, such as a cost of living adjustment, the overall impact seems minimal. He notes, "Their compensation went to zero for five months," which significantly affected their earnings 1. Ed Elson adds that the transparency in residual payments was improved, but the main demand for increased residuals remains largely unmet 2. Despite some positive changes, the negotiations did not deliver substantial victories for most writers.

   

Residuals Debate

The debate over residual payments reveals a complex landscape of partial victories and unmet expectations. Ed Elson points out that the 5% pay increase falls short of the 10% needed to maintain purchasing power, given inflation over the past three years 3. Scott Galloway emphasizes that the residual bonus structure benefits only top-tier shows, leaving many writers without significant gains 2. He remarks, "The problem is kind of in the middle of the lower end of the market," highlighting the disparity in benefits across the industry.