Negotiations between Hollywood actors and studios over an ongoing strike have broken down, dashing expectations for a quick resolution to a crisis that has paralyzed the entertainment sector.
Since last week, executives from studios such as Disney and Netflix have been meeting with Screen Actors Guild (SAG-AFTRA) negotiators, whose members walked off film and television sets in July.
The studios announced the suspension of discussions late Wednesday, saying the distance between the two parties’ perspectives was “too great,” with conversations “no longer moving us in a productive direction.”
SAG-AFTRA retaliated hours later, accusing the studios of “bully tactics” and “putting out misleading information” about the negotiations. The studios reached an agreement with Hollywood writers last month, putting an end to their own strike.
Given that agreement, as well as commonalities between SAG-AFTRA’s and the authors’ demands, there was rising hope that a deal with the actors would be reached soon.
SAG-AFTRA has now accused the studios of not making credible offers and distorting suggestions made during discussions, dimming any hope.
“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 actors’ union said.
“The companies are using the same failed strategy they tried to inflict on the (writers’ union) –- putting out misleading information in an attempt to fool our members into abandoning our solidarity and putting pressure on our negotiators.”
Clash over actors’ demands for streaming revenue share
Even with writers returning to work, most film and television production cannot resume until SAG-AFTRA’s demands are met, costing the entertainment business and its employees millions of dollars each day.
Actors, like writers, have advocated for higher pay, better transparency over earnings from popular streaming shows, and safeguards against the use of artificial intelligence.
However, the studios, as represented by the Alliance of Motion Picture and Television Producers (AMPTP), are now accusing actors of making unreasonable demands, such as a cut of revenue from streaming shows that “would cost more than $800 million per year.”
Netflix CEO Ted Sarandos said Thursday at an industry gathering in Los Angeles that the performers’ demands for “a certain amount of money for every subscriber” to a streaming platform were “a bridge too far.”
SAG-AFTRA maintains that the genuine cost of its proposal would be “less than 57 (US cents) per subscriber each year,” accusing studios of misrepresenting the actors’ demands.
‘Stonewalling and greed’
Despite the squabbles, the actors’ union stated that it is “ready to negotiate today, tomorrow, and every day.”
The studios added: “We hope that SAG-AFTRA will reconsider and return to productive negotiations soon.”
AI has proven to be a key stumbling block in the negotiations. Actors are concerned that the technology will be used to clone their voices and likenesses, allowing them to be reused in perpetuity without payment or consent.
Studios claim to have established severe safeguards such as requesting “advance consent” from actors and limiting repeated usage of a performer’s “replica” unless they agree and are paid.
However, SAG-AFTRA stated that the AI proposal “continues 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).”
“We have sacrificed too much to capitulate to their stonewalling and greed,” SAG-AFTRA said.