Talks Between Studios, Actors Break Down

strike
(Image credit: Mario Tama/Getty Images)

LOS ANGELES—Negotiations between the AMPTP and SAG-AFTRA to resolve the actors strike that began in July have been suspended after SAG-AFTRA presented its most recent proposal on Wednesday. 

“After meaningful conversation, it is clear that the gap between the AMPTP and SAG-AFTRA is too great, and conversations are no longer moving us in a productive direction,” the Alliance Alliance of Motion Picture and Television Producers said in a statement Wednesday night.

The most contentious issue is over streaming revenues: AMPTP claims that SAG-AFTRA’s current offer that would include a collective fee (which the actors union describes as a “viewership bonus”) to cover streaming revenues would cost more than $800 million per year, creating what the studios said would be “an untenable economic burden.”

SAG-AFTRA responded that the actors union negotiated with AMPTP “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,” adding that the studios intentionally overstated the cost of the streaming revenue proposal by 60%. 

The AMPTP’s statement included details over proposed resolutions to the ongoing strike, which began in July after the actors union voted to join writers who had been on the picket line since early May. That walkout was resolved two weeks ago. 

AMPTP says it offered actors “the highest increase in minimums in 35 years,” generating an additional $717 million in wages and $177 million in contributions to pension and health plans during the contract term. It also offered a 76% increase in “high budget” SVOD foreign residuals for the four largest streaming services, as well as “substantial increases” in pension and health contribution caps, ranging from 22-33%. It also offered double-digit wage increases for extras and stunt performers as well as additional job protections.

On AI, AMPTP said it offered to put rules in place that would give actors more control over the use of “Digital Replicas” or “Digital Alterations” and establish guidelines for renumeration. 

AMPTP said “on common issues, such as general wage increases, High-Budget SVOD residuals, and viewership bonuses, the AMPTP offered the same terms that were ratified by the DGA and WGA. Yet SAG-AFTRA rejected these. We hope that SAG-AFTRA will reconsider and return to productive negotiation soon.

SAG-AFTRA was having none of that. 

“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,” the union said Wednesday night. “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. LOS ANGELES—Negotiations between the AMPTP and SAG-AFTRA to resolve the actors strike that began in July have been suspended after SAG-AFTRA presented its most recent proposal on October 11. 

“After meaningful conversation, it is clear that the gap between the AMPTP and SAG-AFTRA is too great, and conversations are no longer moving us in a productive direction,” the Alliance Alliance of Motion Picture and Television Producers said in a statement Wednesday night.

The most contentious issue is over streaming revenues: AMPTP claims that SAG-AFTRA’s current offer that would include a collective fee (which the actors union describes as a “viewership bonus”) to cover streaming revenues would cost more than $800 million per year, creating what the studios said would be “an untenable economic burden.”

SAG-AFTRA responded that the actors union negotiated with AMPTP “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,” adding that the studios intentionally overstated the cost of the streaming revenue proposal by 60%. 

The AMPTP’s statement included details over proposed resolutions to the ongoing strike, which began in July after the actors union voted to join writers who had been on the picket line since early May. That walkout was resolved two weeks ago. 

AMPTP says it offered actors “the highest increase in minimums in 35 years,” generating an additional $717 million in wages and $177 million in contributions to pension and health plans during the contract term. It also offered a 76% increase in “high budget” SVOD foreign residuals for the four largest streaming services, as well as “substantial increases” in pension and health contribution caps, ranging from 22-33%. It also offered double-digit wage increases for extras and stunt performers as well as additional job protections.

On AI, AMPTP said it offered to put rules in place that would give actors more control over the use of “Digital Replicas” or “Digital Alterations” and establish guidelines for renumeration. 

AMPTP said “on common issues, such as general wage increases, High-Budget SVOD residuals, and viewership bonuses, the AMPTP offered the same terms that were ratified by the DGA and WGA. Yet SAG-AFTRA rejected these. We hope that SAG-AFTRA will reconsider and return to productive negotiation soon.

SAG-AFTRA was having none of that. 

“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,” the union said Wednesday night. “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. Instead they use bully tactics. 

“The companies are using the same failed strategy they tried to inflict on the WGA – putting out misleading information in an attempt to fool our members into abandoning our solidarity and putting pressure on our negotiators,” SAG-AFTRA continued. “But, just like the writers, our members are smarter than that and will not be fooled.

“We feel the pain these companies have inflicted on our members, our strike captains, IATSE, Teamsters and Basic Crafts union members, and everyone in this industry. We have sacrificed too much to capitulate to their stonewalling and greed. We stand united and ready to negotiate today, tomorrow, and every day.”

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Tom Butts

Tom has covered the broadcast technology market for the past 25 years, including three years handling member communications for the National Association of Broadcasters followed by a year as editor of Video Technology News and DTV Business executive newsletters for Phillips Publishing. In 1999 he launched digitalbroadcasting.com for internet B2B portal Verticalnet. He is also a charter member of the CTA's Academy of Digital TV Pioneers. Since 2001, he has been editor-in-chief of TV Tech (www.tvtech.com), the leading source of news and information on broadcast and related media technology and is a frequent contributor and moderator to the brand’s Tech Leadership events.