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Home  /  Entertainment  /  Hollywood  /  The Hollywood actors strike: Unveiling the two key issues – Artificial intelligence and residuals

The Hollywood actors strike: Unveiling the two key issues – Artificial intelligence and residuals

by Shriya Kataria
July 15, 2023
in Breezy Explainer, Entertainment, Hollywood
Reading Time: 3 mins read
The Hollywood actors strike: Unveiling the two key issues - Artificial intelligence and residuals

Hollywood has come to a standstill. SAG-AFTRA (Screen Actors Guild-American Federation of Television and Radio Artists) is going on strike now, after the Writers Guild of America (WGA), started its strike in May of this year. Hollywood as we know it is effectively closed until at least one of the strikes is settled shortly (preferably by studios agreeing to their demands). Because without writers, screenplays cannot be written, and even if they are, actors are not present to perform them on screen. To put it mildly, neither the studios nor the striking writers and actors should be in this situation.

While studios have a lot of strength and resources, which enable them to withstand strikes for a long time, the situation for individual strikers is different. They are conscious of the limitations on their ability to maintain their personal finances during a strike. However, the only way they can fight for fair pay, improved working conditions, and the defense of their rights is to picket outside the studio.

The reasons behind the SAG-AFTRA strike boil down to two main issues

One of the initial reasons WGA members protested was because studios wanted to use artificial intelligence-driven Large Language Models (LLMs) like ChatGPT to generate scripts. But another factor contributing to the discontent among SAG-AFTRA members is AI, but not precisely ChatGPT. In a purported plan that seems like a science fiction movie or a Black Mirror episode, studios want to scan background actors and keep their likenesses forever in exchange for a single day’s compensation. Concerns regarding the future of performers’ creative rights and the potential exploitation of their digital likenesses have been raised in response to this disclosure. The strikes acquire urgency as actors are united in their fight to seek fair compensation and protection from AI manipulation.

A June letter written by the union’s general counsel Jeffrey Bennett reads, “SAG-AFTRA maintains that the right to digitally replicate a performer’s voice or likeness to substantially manipulate a performance, or to create a new digital performance, is a mandatory subject of bargaining. You cannot unilaterally impose terms in individual contracts that purport to grant these rights.” Studio leaders have not yet openly addressed the AI plan, despite the fact that the Alliance of Motion Picture and Television Producers (AMPTP), which comprises studios, streamers, producers, and distributors, has denied the reports.

Think of residuals as the royalties book publishers give authors in the entertainment industry. The residual situation was straightforward for older types of entertainment, but streaming has made things more difficult. There are frequently fewer episodes of streaming shows than on traditional TV. In the past, actors and writers would receive regular residual payments from popular TV shows. However, the emergence of streaming has changed the system, having a detrimental effect on their income. In order to preserve their jobs from AI use, both performers and authors are pushing for stricter regulations. Due to inflation and the streaming industry’s practice of paying less residual income than traditional exhibition models, union leaders assert—and with good reason—that current residual payments do not adequately reward members for their contributions.

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