The Alliance of Motion Picture and Television Producers (AMPTP) has said that discussions with Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) have been put on hold because the gulf between the two groups is "too great."
The trade group representing studios and streamers claimed in a press statement on Wednesday night that discussions between them and SAG-AFTRA had been terminated after SAG-AFTRA delivered its most recent proposal on October 11. It has become evident that the disparity between the AMPTP and SAG-AFTRA is insurmountable, with talks no longer yielding constructive outcomes, as per Deadline.
The AMPTP and SAG-AFTRA's Struggle to Bridge the Gap
After weeks of negotiations, it is becoming increasingly evident that the gap between the AMPTP and the SAG-AFTRA is too vast to bridge.
This impasse is raising concerns within the entertainment industry and beyond, as a strike by 160,000 performers has disrupted Hollywood's production economy and promotional activities for three long months.
The latest breakdown in negotiations, which occurred on a Wednesday night, represents a significant setback for those who hoped for a swift resolution to the ongoing strike.
Unfortunately, discussions seem to have ceased to progress, and both parties appear deeply entrenched in their positions. At the heart of the dispute is the issue of revenue sharing from streaming services. SAG-AFTRA has long demanded a 2% cut of streaming revenue for its members, a request that the AMPTP views as unrealistic.
The studio alliance argues that granting such a concession would impose an annual cost of over $800 million on the companies, rendering it economically untenable. In response, the AMPTP has offered what they describe as a "first-of-its-kind success-based residual" for subscription-based streaming productions.
They've also proposed generous increases in minimum pay, foreign streaming residuals, pension and health contribution caps, and relocation allowances. Yet, more than these offers are needed to break the deadlock.
Two parties involved find themselves entangled not only in a dispute over revenue sharing but also in a profound struggle to comprehend the far-reaching consequences of generative artificial intelligence within the industry.
Actors have expressed concerns about the threat posed by AI to their livelihoods, making it another sticking point in the negotiations. The talks, which resumed on October 2, have been slow and arduous, with high-profile executives, including Bob Iger of Disney, Ted Sarandos of Netflix, David Zaslav of Warner Bros.
Discovery, and Donna Langley of NBCUniversal, participating in the discussions. Conversely, SAG-AFTRA President Fran Drescher has played a central role in the negotiations, according to Aol.
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Compensation, AI Protections, and Resolution Standoff
The strike has had a profound impact on the industry. Film and TV actors have been on strike since mid-July, and their demands include greater compensation, higher residuals, revenue sharing, and enhanced protection against the use of AI to replicate their performances.
One of the contentious issues has been using a content valuation tool from Parrot Analytics to determine streaming revenue. SAG-AFTRA's proposal suggests studios should pay 2% of the revenue generated by a program to actors based on Parrot's calculations, which take into account various metrics.
The AMPTP, however, has raised concerns about the accuracy of this approach, questioning whether it truly reflects the revenue generated by the streaming service.
The argument centers on risk and reward. The AMPTP contends that actors seek rewards without taking on additional financial risk, while studios invest heavily in high-budget productions that may not profit.
SAG-AFTRA negotiator Duncan Crabtree-Ireland disagrees, asserting that actors bear more risk than studio executives, who often receive substantial bonuses if a project succeeds. Many in the industry had hoped that SAG-AFTRA and the AMPTP would follow in the footsteps of the Writers Guild of America (WGA), which recently ended a strike after 148 days of negotiations.
The WGA secured a new contract that included higher pay, AI protections, and viewership-based bonus payments for streaming shows. However, the actors' strike has proven more intractable.
As the strike continues to take its toll on the entertainment industry, the frustration of industry figures is palpable. Ari Emanuel, CEO of the media agency Endeavor, expressed his concern, highlighting the widespread impact of the strike on people within and beyond the industry.
Negotiations remain at a standstill, with no Oscar-worthy resolution in sight. The future of Hollywood remains uncertain, as the standoff between the AMPTP and SAG-AFTRA shows no signs of ending.
The repercussions of this strike reach far beyond the entertainment world, affecting the livelihoods of many individuals and leaving the industry uncertain. Until both parties can find common ground, the strike's paralyzing effects on Hollywood's production economy and publicity machine will persist, leaving the industry's future in balance, according to The Hollywood Reporter.
