In a desperate plea to save what remains of the broadcast season and the highly anticipated 2024 Summer movie slate, studios have urged SAG-AFTRA to swiftly come to a deal. With the fall season already lost and a significant number of movies rescheduled, the studios have expressed their concern that the demands of the industry may force them to reconsider the terms on the table. As the clock ticks, the fate of the entertainment industry hangs in the balance, with broadcasters anxiously awaiting the opportunity to resume productions in late January or early February.
Recently, the AMPTP, representing the studios, presented what they deemed their “last, best, and final offer” to SAG-AFTRA on November 3. This proposal allegedly included substantial compensation increases and comprehensive AI protections. Deadline reports that the studios are determined to convince SAG-AFTRA members of the deal’s merits, stressing that it is the best among all the guild contracts. However, the guild’s approval process involves multiple stages, including voting by the Negotiating Committee and the guild board, before reaching eligible members for ratification. The studios’ ultimatum may not yield the desired outcome and could even backfire if perceived as bullying by the guild, potentially leading to a breakdown in negotiations.
The studios’ deadline arrives after 118 days of SAG-AFTRA’s strike and several weeks of renewed talks between the two parties. The previous strikes, spearheaded by the WGA, have taken a significant toll on the California economy, resulting in a staggering $6.5 billion loss and over 45,000 job losses in the entertainment industry. Amid these labor disputes, both Warner Bros Discovery and Disney revealed mixed earning reports for the third quarter, shedding light on the financial repercussions of prolonged strikes. Consequently, both companies experienced a decline in stock value following the release of their earnings.
Central to the ongoing dispute are the negotiations surrounding AI protections. According to insiders, SAG-AFTRA negotiators are meticulously working on defining AI-related aspects, ensuring that actors will be compensated when their likeness is used digitally. Additionally, the issue of consent from actors and clearance protocols for deceased actors represent critical considerations. Although indie films have been cleared for SAG-AFTRA agreements, many agents raise concerns about clients being unable to book projects until 2024, potentially incurring soaring costs. Interestingly, Beyoncé’s upcoming concert film, distributed by AMC, has not secured an interim agreement with SAG-AFTRA, a decision that could be influenced by the desire to wait for an end to the strike.
Warner Bros Discovery CEO, referring to the deal presented on November 3, lauded the studios’ efforts, claiming they had effectively met the union’s goals, including the most significant wage increase in 40 years. Netflix’s co-CEO, Ted Sarandos, highlighted the studios’ generosity in their “last, best, and final” offer, emphasizing their willingness to accommodate SAG-AFTRA. Both these sentiments underscore the studios’ diligent attempts to reach a resolution. Nevertheless, any disruption to these otherwise productive negotiations could prove disheartening for the industry and have the most profound impact on below-the-line communities, desperately seeking an end to the strike. Concerns arise that studios may postpone talks until the following year, jeopardizing the resumption of productions due to the holiday season.
Despite the challenges posed by the ongoing strike, plans are already in motion to resume the production of highly anticipated movies such as Gladiator 2, Beetlejuice, and Deadpool 3, once a tentative agreement is reached. Disney CEO Bob Iger expressed cautious optimism about an imminent resolution but warned of potential disruptions to the summer theatrical release schedule if the strike persists. Despite setbacks caused by the strike, Iger remains confident in the upcoming releases of Deadpool 3, Inside Out 2, and Kingdom of the Planet of the Apes in the following year. However, challenges persist, including the unfinished production of Deadpool 3 and the rescheduling of Pixar’s Elio and Snow White from 2024 to 2025.
As the urgency to strike a deal intensifies, SAG-AFTRA and the studios find themselves in a pivotal moment that will decide the future of the entertainment industry. While the studios have passionately presented their final offer, SAG-AFTRA remains cautious, considering the complex approval process required to endorse any agreement. The outcome of these negotiations will undoubtedly shape the fate of countless industry professionals and ultimately determine the industry’s ability to recover from the devastating impact of the strikes.
With the broadcasting industry in turmoil and the movie slate in jeopardy, the pressure is on for SAG-AFTRA and the studios to reach an expeditious agreement. Both sides must meticulously evaluate their respective positions and find common ground to ensure the timely resumption of productions. The forthcoming weeks will prove critical for the entertainment industry, as the decisions made in this pivotal moment will undoubtedly shape its future. The resolution of the current labor disputes will determine whether the industry can rebuild and regain its former glory.