After 108 days of strike action, there is now a glimmer of hope that a new deal between SAG-AFTRA and AMPTP is within reach. According to a guild source, there is a feeling of optimism surrounding the ongoing negotiations. Additionally, a senior studio source stated that they are in the final stretch. Both sides are expressing confidence that an agreement could be reached in the coming days. However, it is important to note that the situation remains fluid, and caution is still necessary.
Bridge the Gap: Success-Based Compensation for Streaming
One key area where SAG-AFTRA and the studios have made significant progress is in bridging the gap over success-based compensation for streaming shows and their casts. The details of the proposed deal have not been revealed, but it is clear that both sides have gained traction in finding common ground. Despite these positive developments, neither SAG-AFTRA nor the AMPTP have provided an official comment on the ongoing talks.
Throughout Sunday, the negotiation teams from both sides, SAG-AFTRA Chief Negotiator and National Executive Director Duncan Crabtree-Ireland and AMPTP President Carol Lombardini, held multiple virtual meetings. Notably absent from these discussions were the studio’s CEO “gang of four,” including Disney’s Bob Iger, Netflix’s Ted Sarandos, Warner Bros Discovery CEO David Zaslav, and NBCUniversal’s Donna Langley.
Over the weekend, the studios had initially expressed disappointment with SAG-AFTRA’s proposal on Friday. However, there has been a noticeable shift in attitude, with studios becoming more upbeat as both sides identify potential areas of agreement. While progress has been made, there are still important issues to address, including fair streaming revenue residuals for the union’s 160,000 members and protection of performers’ likeness rights in relation to the use of AI by studios.
One of the most challenging aspects of the current negotiations is reaching an agreement on streaming revenue for actors. Talks resumed on October 24 after a 12-day suspension by the studios. As part of their proposal, the studios offered increased minimum rates and bonuses based on the success of streaming content. SAG-AFTRA responded with a counterproposal, indicating a move from an 11% rise to 9%. The studios’ success-based metric was in response to SAG-AFTRA’s request for a 57 cents per subscriber annual charge on October 11, which was met with resistance from Netflix’s Ted Sarandos.
Implications for the Industry
The strike has already had significant repercussions for the entertainment industry. Three major movies, including “Mission Impossible 8” and Disney’s “Snow White” and Pixar’s “Elio,” worth a combined $1.5 billion in global box office revenue, have been removed from the 2024 calendar. This has heightened the studios’ concerns about the resumption of global feature and TV production. Despite recently signing a contract with the Writers Guild of America (WGA) and having writers already at work, the studios are facing difficulties as they navigate the uncertain release calendar and the impact on exhibition and box office revenues.
Once the strike concludes, an influx of job opportunities in the industry can be expected. Actors will likely jockey for positions in both TV and feature projects, which may lead to some individuals opting to prioritize their TV commitments over feature films. The studios are hoping that a resolution to the strike will help mitigate the economic losses experienced during the pandemic, which have cost the state of California an estimated $6.5 billion.
The Strength of the Union
Throughout the negotiation process, SAG-AFTRA has received support from high-profile performers, including Julia Louis-Dreyfus, Jon Hamm, Sarah Paulson, Chelsea Handler, and Christian Slater. These individuals have pledged to continue picketing until a fair deal is reached. This solidarity among actors contrasts with the offer of $150 million made by George Clooney, Emma Stone, Robert De Niro, and Ariana DeBose in a previous zoom call to remove a cap on union dues.
The negotiations between SAG-AFTRA and the AMPTP are entering a crucial phase, with optimism surrounding the potential for a new deal. Significant progress has been made in bridging the gap on success-based compensation for streaming, although challenges remain. The outcome of these negotiations will have a profound impact on the future of the entertainment industry, particularly in relation to streaming revenue and the resumption of production.