A $480 Million Impasse Exists Between Studios And Actors To End The Strike

The Alliance of Motion Picture and Television Producers, or AMPTP, claimed that the “gap” between the two parties was “too great” when negotiations to resolve the actors’ strike between SAG-AFTRA and Hollywood studios failed last week.

The AMPTP is only prepared to pay $20 million of the $500 million that actors are requesting as part of a new streaming residual system, leaving a $480 million “gap.” Tuesday saw Variety publish the calculations.

SAG-AFTRA’s current offer, according to the AMPTP, includes “what it characterized as a viewership bonus.” Representatives from the studio said that the “bonus” alone would “create an untenable economic burden” by costing more than $800 million annually. The bargaining committee for SAG-AFTRA stated on its website that the AMPTP had 60% distorted its income share plan.

SAG-AFTRA said that Hollywood’s existing business model has “eroded” performers’ residual income and that its solution will cost streaming platforms “less than 57¢ per subscriber each year.”

The negotiating team declared at the time, “They have rejected our proposals and refused to counter.”

Following the expiration of their contract, the SAG-AFTRA actors union went on strike in July. The requests of the guild members include increased compensation, increased payments to healthcare and pension funds, and a recalculation of the residuals that members receive from the sale of streaming services. The union also demands protection from artificial intelligence use and modifications to the “abusive” self-taping audition procedure, just like authors do.

The entertainment business came to a complete stop when the guild members joined the Hollywood writers on the picket line. Given that both organizations were on strike, the television season of 2023–2024 appeared to be doomed. However, without performers, production cannot continue, even though the writers have returned to their work. The impasse is starting to take a toll on the studios’ bottom lines.

According to reports, Warner Bros. Discovery could lose as much as $500 million in adjusted earnings this year as a result of the strikes. An August employment report from the U.S. Bureau of Labor Statistics showed that 17,000 jobs in the entertainment sector had been lost “reflecting strike activity.”

The effects of the ongoing actors’ strike are already being seen. According to reports, Netflix intends to reorganize its animation division, leading to employment reductions. The massive streaming service is also thinking about contracting out certain work to outside businesses.

It’s unclear when the two organizations will reach common ground because talks have been put on hold.

A $480 Million Impasse Exists Between Studios And Actors To End The Strike

The Alliance of Motion Picture and Television Producers, or AMPTP, claimed that the “gap” between the two parties was “too great” when negotiations to resolve the actors’ strike between SAG-AFTRA and Hollywood studios failed last week.

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