Hollywood studios, SAG-AFTRA resume negotiations on streaming revenue, AI issues
Hollywood studios and SAG-AFTRA—the actors's union—are scheduled to continue negotiations on Wednesday (local time), aiming to resolve the ongoing strike that has lasted over 100 days. In July, the actors joined their counterparts from the Writers Guild of America (WGA) in protest, who initiated their strike on May 2. The disputes between the actors's union and studios involve a broad spectrum of issues including disagreements over streaming revenue, and the utilization of artificial intelligence (AI), among other matters.
Why does this story matter?
The Alliance of Motion Pictures and Television Producers (AMPTP) is the organization representing the studios and streaming platforms in the negotiation talks with SAG-AFTRA. Around 1.6L TV and film actors commenced an indefinite strike on July 14, joining the screenwriters from WGA on picket lines. This event marked the first dual strike in Hollywood in 63 years. Although the writers reached a tentative agreement with the studios, the actors's union is still engaged in negotiations.
All major CEOs came back to the negotiating table
SAG-AFTRA presented its latest counteroffer on October 11. Following a break of nearly two weeks, SAG-AFTRA negotiators met with top studio executives, including Ted Sarandos (Netflix), Bob Iger (Disney), Donna Langley (NBCUniversal), and David Zaslav (Warner Bros. Discovery). In a message to its members on X/Twitter, the SAG-AFTRA TV/Theatrical negotiating committee confirmed that the CEOs of the studios returned to the negotiating table, and discussions were scheduled to continue the following day.
Take a look at the message from SAG-AFTRA
What is SAG-AFTRA's streaming viewership proposal?
The main issue at the heart of the negotiations is SAG-AFTRA's proposal concerning streaming services. They are reportedly suggesting that these platforms should pay 57 cents for each subscriber, and this money would be used to create a fund for SAG-AFTRA members. AMPTP has labeled this proposal as an "untenable economic burden," while SAG-AFTRA argues that this is a necessary step to provide additional income to their members who are involved in projects that are streamed online.
Negotiations on AI guardrails and minimum rate increases
Besides the streaming viewership proposal, both parties are still far from reaching an agreement on AI safeguards in the entertainment industry and minimum pay rate increases for the next three years. Both the union and the studios are under pressure to find a solution because the strike has already caused significant economic damage. Per reports, California's economy has suffered a $6.5B loss, and the industry has shed 45,000 jobs due to the strike.
Hollywood studios concerned about impact on 2024 calendar: Report
Studios have reportedly expressed growing concerns about the potential effects of a prolonged strike on the 2024 film calendar. In light of this, Paramount Pictures has already rescheduled the release dates of several major films including Tom Cruise's Mission: Impossible 8, which has been delayed to 2025. Paramount has also pushed back the release of A Quiet Place: Day One from March 8, 2024, to June 28, 2024.
