Talks between major Hollywood studios and the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) have e completely collapsed in recent days, with both sides citing unresolvable differences.
This significant halt in proceedings threatens to extend the production freeze on numerous film and television projects.
Since July, SAG-AFTRA has been striking, highlighting critical concerns, notably around compensation structures for streaming platforms and the increasingly controversial deployment of artificial intelligence in film and television production.
The AMPTP, which serves as the negotiation front for major Hollywood studios, took the decisive step of suspending ongoing talks, indicating in no uncertain terms that the dialogues had diverged from a constructive path. Their statement elucidated their position,
“After meaningful conversations, it is clear that the gap between the AMPTP and SAG-AFTRA is too great.”
The entertainment industry had been previously buoyed by the resolution achieved between the Writers Guild of America (WGA) and key entertainment entities. After enduring a protracted 148-day strike, a mutual agreement was reached, particularly around improved royalties for streaming content. This had lit a beacon of hope that a similar accord might be struck between the striking actors and the studios, especially given the rejuvenated negotiations just a week prior.
However, the cost to Hollywood cannot be understated. The current gridlock has left a gaping void, rendering thousands jobless and siphoning billions from what is typically a bustling economy.
The AMPTP pinpointed SAG-AFTRA‘s latest proposal as the straw that broke the camel’s back. They allege that accommodating the actors’ union would levy an unsustainable additional yearly cost of $800m (£650m). However, in a firm rebuttal, SAG-AFTRA conveyed in a communication to its members that this figure had been grossly exaggerated by a whopping 60%. Their letter expressed a profound sense of letdown, stating,
“We have negotiated with them in good faith… despite the fact that last week they presented an offer that was, shockingly, worth less than they proposed before the strike began.”
SAG-AFTRA‘s public statements went on to underline the crux of their grievances,
“These companies refuse to protect performers from being replaced by AI, they refuse to increase your wages to keep up with inflation, and they refuse to share a tiny portion of the immense revenue YOUR work generates for them.”
The union pulled no punches, openly criticizing the studios for what they perceive as distortion of facts and strong-arming.
The AMPTP‘s response was comprehensive, detailing a plethora of offers made during negotiations. This ranged from augmented residuals for High-Budget SVOD productions, sweeping wage increments, enhanced allowances, and stringent AI guidelines which would mandate an actor’s explicit consent.
The negotiation tables were graced by industry stalwarts. From the studio’s corner, the line-up read like the who’s who of entertainment, with NBCUniversal’s Donna Langley, Warner Bros Discovery’s David Zaslav, Netflix’s Ted Sarandos, and Disney’s Bob Iger at the forefront. SAG-AFTRA had its champions in President Fran Drescher and chief negotiator Duncan Crabtree-Ireland, amongst others.
As the stalemate continues, the industry holds its collective breath, with many hoping for a swift resolution to protect the interests of all stakeholders involved.
Source: Deadline and Hollywood Reporter
