It is Game 7, bottom of the 9th. Hollywood studios have extended the deadline for negotiations with the Screen Actors Guild (SAG-AFTRA) for one more week, signaling that if a deal cannot be reached in this time frame, new productions may be postponed until 2024.
SAG-AFTRA on strike July 14 and the union has now passed the 100th day of the labor dispute. Now, even with the WGA back at work writing scripts for film and TV, studios are now facing the possibility of losing the fall television season and delaying new movie releases until next summer.
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According to an insider with knowledge of the situation, the early November deadline is crucial for salvaging the current production schedule. Beyond this date, it becomes increasingly unlikely that any new projects will commence, effectively pushing all productions from the fall into the new year. This scenario would significantly reduce the studios’ incentive to reach an agreement.
CEOs from major entertainment conglomerates, including Disney, Netflix, Warner Bros. Discovery, and NBCUniversal, are scheduled to meet with SAG-AFTRA President Fran Drescher and chief negotiator Duncan Crabtree-Ireland, along with their legal teams, in an attempt to reach a contract today.
The negotiations resumed this week after the studios walked away from the talks two weeks ago due to a new demand by SAG-AFTRA for a $1-per-subscription fee from streaming divisions, in addition to previously negotiated raises and benefits.
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According to Sharon Waxman of TheWrap, the CEOs are negotiating on behalf of the Alliance of Motion Picture and Television Producers (AMPTP). The recent counter-offer from the AMPTP led to a brief pause in the negotiations while the guild discussed the proposal. While the delay was a surprise to the studio side of talks, it is seen as a hopeful sign that progress can be made in upcoming discussions.
The primary point of contention between the two sides has been SAG-AFTRA’s proposed streaming revenue-sharing plan, which the studios consider a “levy” on streaming services. SAG-AFTRA estimated the proposal to amount to about 57 cents per streaming subscriber, while the AMPTP characterized it as a $1-per-subscription fee.
The studios are advocating for a viewership bonus model similar to one agreed upon with the Writers Guild of America (WGA), while SAG-AFTRA argues that the revenue-sharing plan is a better model for ensuring increased pay for performers across the union’s membership.
The outcome of the negotiations will have significant implications for the entertainment industry, impacting the fall release of new TV shows and movies.
For Reel 360 News’ full strike coverage, click here.
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