The writers’ strike has reached its endpoint as the backbone of creative work has agreed upon a deal. However, the question now is, what about the faces of the industry? Reports suggest that studios are preparing to make a deal, and this time it seems to be out of desperation.
Four CEOs will be heading to SAG-AFTRA headquarters to negotiate with the actors to put an end to their 102-day-long ongoing strike. Among the group of four, there will be Disney’s Bob Iger, Warner Bros. Discovery’s David Zaslav, Netflix’s Ted Sarandos, and NBCUniversal’s Donna Langley. Bob Iger will serve as the chief negotiator of the group.
This situation may be a result of the postponement of major titles such as “Dune 2,” “Deadpool 3,” and the recent news about “Mission Impossible.” The problem is not limited to these titles, as more may be affected if a resolution isn’t reached.
There was initially hope for a deal between the studios and the actors, but negotiations soured, leading to the ongoing strike. The two sides remain far apart in their negotiations, and this upcoming meeting may be a last-ditch effort to bridge the gap.
SAG-AFTRA, the actors’ union, is pushing for AI safeguards and an 11% increase in minimum pay rates. However, negotiations hit a roadblock on October 11 due to a dispute over SAG-AFTRA’s request for a 57-cent-per-subscriber fee on streaming platforms, which would cost the studios roughly $500 million annually. The studios argue that this fee is financially burdensome.
In 2019, actors earned $91.7 million in streaming residuals, more than what they made from network reruns but less than from cable and pay TV. By 2022, this amount increased to about $126 million due to a union agreement.
CEOs have now agreed to further increase this amount by considering income from foreign subscribers and introducing a viewership-based bonus, similar to the deal made with the Writers Guild of America. However, SAG-AFTRA deems the proposed $20 million annual viewership-based bonus inadequate, asserting that it falls short of meeting actors’ requirements compared to the Writers Guild of America’s deal.
While the meeting is set to happen on paper, in reality, it doesn’t appear to be very fruitful. Some rigidity from the studio’s side could once again derail the entire process. There are numerous layers to this issue beyond AI usage and monetary concerns, making a resolution seem distant.
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