Title: Major Studios and SAG-AFTRA at Standstill as Talks Collapse
In a major blow to the entertainment industry, negotiations between major studios and the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) have come to a sudden halt, resulting in a crippling strike. Talks broke down last week, leaving both parties unable to bridge the significant gap that separates them.
While the studios claim that the gap is insurmountable, SAG-AFTRA remains resolute in their demands for fair compensation. The divide between the two sides is staggering, with a difference of $480 million per year at stake. SAG-AFTRA is pushing for a new streaming residual formula that amounts to $500 million, while the studios are only willing to offer $20 million – a mere fraction of the union’s proposal.
Aside from financial matters, the two parties are also embroiled in disagreements over artificial intelligence implementation and potential increases in minimum rates. Union leaders were taken aback when the studios abruptly walked away from the negotiation table, as they had anticipated further discussions.
The Alliance of Motion Picture and Television Producers (AMPTP) claimed that SAG-AFTRA had presented an ultimatum, demanding an “untenable” proposal, which left the studios with no choice but to halt negotiations. These streaming residuals have proven to be pivotal issues, as they were also central in the recent writers strike, which concluded with the Writers Guild of America (WGA) accepting a comparatively small settlement.
SAG-AFTRA, however, is aiming much higher, proposing that each streaming platform contribute 57 cents per subscriber annually, amounting to $500 million across all platforms. This funding would be allocated to a jointly administered fund, to then be distributed among actors based on viewership. Notably, the union discarded an earlier proposal that had relied on third-party data provider Parrot Analytics.
Interestingly, the AMPTP is offering a similar proposal to the one that had been accepted by the WGA. Negotiations between SAG-AFTRA and the studios resumed on October 2, with the union pressing for a 2% revenue share, which was ultimately lowered to 1%. However, the studios remained resistant to the idea of revenue sharing. In response, SAG-AFTRA proposed the 57-cent-per-subscriber formula, which the studios see as another version of the same concept they had already rejected.
As the strike essentially shuts down the entertainment industry, fans and industry workers eagerly await further developments. The future of negotiations between major studios and SAG-AFTRA remains uncertain, leaving many wondering when a resolution will finally be reached.
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