Negotiations between studios and actors halted due to ‘bully tactics’.
Major Studios and SAG-AFTRA Talks Halted, Actors Strike Continues
Just as talks between major studios and SAG-AFTRA seemed to be going well, they came to an abrupt halt, ending hope of resolving the ongoing actors strike anytime soon.
Industry professionals were hoping that the recently ratified contract between the Writers Guild of America (WGA) and the Alliance of Motion Picture and Television Producers (AMPTP) would spur a similar agreement with the actors as both were on strike at the same time. But now talks are halted, and the work stoppage will continue.
“After meaningful conversations, it is clear that the gap between the AMPTP and SAG-AFTRA is too great, and conversations are no longer moving us in a productive direction,” the group said in a statement, per Deadline. This led to those conversations being “suspended” for now, the outlet noted.
The main point of contention seems to be actors receiving compensation for streaming shows. The negotiating team for major studios estimated that the proposed resolution would cost them $2.4 billion for the length of the three-year contract, or $800 million per year.
“We hope that SAG-AFTRA will reconsider and return to productive negotiations soon,” the AMPTP statement said.
The statement also laid out some of the specific items offered in its proposed contract, which the organization said was similar to that which was ratified recently by WGA. These items included “the highest percentage increase in minimums in 35 years, which would generate an additional $717 million in wages and $177 million in contributions to the Pension and Health Plans during the contract term” and “a 58% increase in salaries for major role (guest star) performers wages on High Budget SVOD Programs.”
There would also be wage increases for other employment categories, including singers, dancers, stunt people, and other industry workers. The proposed contract also included artificial intelligence protections, another major concern that led to the strike in the first place.
“On common issues, such as general wage increases, High-Budget SVOD residuals, and viewership bonuses, the AMPTP offered the same terms that were ratified by the DGA and WGA. Yet SAG-AFTRA rejected these,” the AMPTP statement said.
Meanwhile, the actors union had a different take on how the talks broke down. “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,” the SAG-AFTRA shared as part of a series of tweets on Thursday.
“We have made big, meaningful counters on our end, including completely transforming our revenue share proposal, which would cost the companies less than 57¢ per subscriber each year. They have rejected our proposals and refused to counter,” the statement continued. “Instead they use bully tactics. Just tonight, they intentionally misrepresented to the press the cost of the above proposal – overstating it by 60%.”
How do streaming residuals differ from traditional TV residuals, and why is this a point of contention?
Oductive negotiations, but we cannot afford to agree to terms that would have such a significant impact on our business,” the AMPTP said in a statement.
The actors, on the other hand, believe that their demands are fair and necessary, especially given the rise of streaming platforms and the amount of revenue generated from online content. They argue that actors deserve a fair share of the profits from these platforms, just like they receive compensation for traditional TV and film projects.
One of the key points of contention is the residual payments for streaming shows. Currently, actors receive a percentage of the revenue from each additional airing of a traditional TV episode. However, streaming services operate differently, with shows being available on-demand and often being watched multiple times by viewers. Actors argue that they should receive appropriate compensation for each view or streaming of their work.
The issue of streaming residuals is not new, and it has been a point of contention between actors and studios for several years. While some progress has been made in recent negotiations, it seems that a deal has yet to be reached that satisfies both parties.
The ongoing actors’ strike has had a significant impact on the entertainment industry, causing delays in production schedules and affecting the livelihoods of actors and crew members. Many popular TV shows and films have been put on hold or postponed indefinitely as a result.
It is clear that both the major studios and SAG-AFTRA are determined to stand their ground on this issue. While negotiations may have temporarily stalled, it is likely that talks will resume in the future as both parties recognize the importance of finding a resolution.
In the meantime, actors and industry professionals affected by the strike continue to face financial uncertainty and challenges. The strike highlights the ongoing struggle between content creators and distributors in the rapidly evolving digital landscape.
As the industry continues to navigate these complex issues, it is crucial for all parties involved to find a compromise that benefits both actors and studios. The future of the entertainment industry relies on collaborative efforts and fair agreements that address the changing dynamics of content consumption.
Until then, the strike continues, and audiences eagerly await the resolution of this impasse to see their favorite shows and performances return to the screen.
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