SAG-AFTRA And Major Studios In Conflict Over Streaming Revenue Sharing

AMPTP declared that the differences between the two sides are too substantial to bridge.

The negotiations between the SAG-AFTRA (Screen Actors Guild and American Federation of Television and Radio Artists) and major studios have hit an impasse, with the Alliance of Motion Picture and Television Producers (AMPTP) declaring that the differences between the two sides are too substantial to bridge.

The union’s proposal to receive a portion of streaming revenue is the main source of disagreement, with the AMPTP estimating it to be nearly one billion dollars. SAG-AFTRA requires a portion of streaming revenue for all shows under the union’s coverage, including original productions made for streaming and licensed films and TV series from other media.

This request extends beyond the success-based bonus the Writers Guild of America already secured. The AMPTP issued a statement expressing concern over the economic
burden the proposed viewership bonus would create, citing its estimated cost of over $800 million annually.

Additionally, SAG-AFTRA is seeking an 11% increase in minimum rates to keep up with inflation. In response, the AMPTP is offering a deal mirroring that given to the Writers Guild of America and the Directors Guild of America: a 5% increase, followed by subsequent raises of 4% and 3.5%.

The studios submitted their newest offer to SAG-AFTRA on Wednesday, highlighting increased rates for guest stars, expanded pension and health contributions, and agreement on most of the union’s requests for self-taped auditions. Additionally, the AMPTP has pledged to obtain consent for the use of artificial intelligence in acting roles, addressing an important union concern. The negotiations have stalled, as the AMPTP believes that the differences between the two parties are too great to be resolved through further discussion. They still hold out hope that SAG-AFTRA will come back to the table and engage in productive negotiations.

The strike initiated by the actors is now in its 90th day, approaching the duration of the 1980 SAG strike, which lasted 95 days. Recently, a group of CEOs from major studios (Disney’s Bob Iger, David Zaslav of Warner Bros. Discovery, Donna Langley of NBCUniversal, and Ted Sarandos of Netflix among them) began engaging in talks with SAG-AFTRA negotiators, aiming to resolve the ongoing labor dispute and get the industry back on track.

Fearing a backlash caused by the actors’ fight, the Directors Guild of America defended its deal, reached in June, in a message to its members on Wednesday. The DGA emphasized their achievements from the negotiations, such as increased foreign residuals, additional cuts for TV directors, and an extra shoot day for directors of one-hour
shows on streaming and pay TV.

On the writers’ side, the WGA voted 99% in favor of ratifying its new agreement on Monday, officially ending one of the longest labor disputes in that guild’s history. The union won a bonus for writers of top-performing made-for-streaming shows, as well as minimum staffing levels in TV and a guaranteed rewrite for feature writers.

Actors’ negotiation stalemate underscores the deep-seated differences between SAG-AFTRA and major studios. The coming days will reveal whether both parties can find common ground and end the strike.

Source: Variety