Negotiations between the Hollywood studios represented by the Alliance of Motion Picture and Television Producers (AMPTP) and the Screen Actors Guild‐American Federation of Television and Radio Artists (SAG-AFTRA) have hit a roadblock, leading to the suspension of talks.
The impasse follows SAG-AFTRA’s recent proposal on October 11, and according to a statement released by the AMPTP, “it has become clear that the gap between the two parties is too wide to bridge at this point.”
This development in the negotiations raises questions about the potential impact on the entertainment industry and the dynamics between actors and production companies. As the talks remain suspended, the industry and its stakeholders are left in a state of uncertainty, awaiting further developments. While WGA writers are back at work in TV writers’ rooms, actors are still necessary to produce the series. The future of these negotiations and their potential consequences will be closely watched by the entertainment community.
The AMPTP released a statement last night that accuses the actors’ union of presenting a proposal that would carry an annual price tag exceeding $800 million. The AMPTP claims it would pose a significant economic burden that the industry may struggle to bear. Additionally, SAG-AFTRA made limited concessions, if any, on several other key issues that remain unresolved.
SAG-AFTRA responds
The actors’ union responded, calling the AMPTP statement a “bullying tactic,” the same approach it used back in August with the WGA
‘It is with profound disappointment that we report the industry CEOs have walked away from the bargaining table after refusing to counter our latest offer,” read the statement. “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 statement continued detailing the sticking points, “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. 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 message on the website added, “Instead, they use bully tactics. Just tonight, they intentionally misrepresented to the press the cost of the above proposal – overstating it by 60%. They have done the same with A.I., claiming to protect performer consent, but continuing to demand “consent” on the first day of employment for use of a performer’s digital replica for an entire cinematic universe (or any franchise project).”
REELated:
The suspension of talks comes after the fifth day of negotiations between SAG-AFTRA and major studios and streaming platforms. During the latest talks at SAG-AFTRA’s Los Angeles headquarters, attended by prominent studio heads including Netflix’s Ted Sarandos, Disney’s Bob Iger, NBCUniversal’s Donna Langley, and Warner Bros. Discovery’s David Zaslav, the two sides have struggled to find common ground.
The AMPTP reportedly presented what they term a “success-based residual” for high-budget subscription video-on-demand (SVOD) titles, akin to what the Writers Guild of America secured in their recent negotiations. Additionally, the AMPTP has addressed several longstanding issues that SAG-AFTRA has pushed for, including increased pension and health contribution caps, ranging from 22 to 33 percent, and the inclusion of performance capture work in SAG-AFTRA’s TV and theatrical agreement.
The studios have also matched the minimum rate increases offered to the Directors Guild of America (DGA) and Writers Guild of America (WGA), which range from 3.5 to 5 percent throughout the contract’s duration. The AMPTP highlighted that they had proposed a “76% increase in High Budget SVOD foreign residuals for the four largest streaming services,” implying that SAG-AFTRA was being offered a foreign residuals formula similar to what the DGA and WGA received.
Regarding AI regulations, the AMPTP’s proposal entails obtaining consent from performers and background actors for the creation and use of “digital replicas.” Written consent would be required, along with a description of the replica’s intended use. Any digital alterations that could change the nature of an actor’s performance would necessitate the performer’s consent. Furthermore, digital replicas could not be reused without consent and compensation.
The impasse dashes the hopes of a speedy resolution and putting Hollywood back to work. The question now becomes if we reach late October or November without a settlement will the broadcast networks just scrap the entire 2023-2024 Television season.
For Reel 360 News’ full strike coverage, click here.
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