LOS ANGELES, CALIFORNIA: In a turn of events that could have far-reaching consequences for the entertainment industry, talks between the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) and the studios have concluded without a deal or an extension, bringing the possibility of a strike to the forefront. With the union's contract officially expiring at midnight, tensions have escalated as both sides dig in their heels. The negotiating committee of SAG-AFTRA has unanimously recommended a strike, and the union's national board was expected to meet Thursday morning, July 13, to decide on the course of action.
Union president slams AMPTP's response
Fran Drescher, the president of SAG-AFTRA, expressed her disappointment with the Alliance of Motion Picture and Television Producers (AMPTP), stating, "SAG-AFTRA negotiated in good faith and was eager to reach a deal that sufficiently addressed performer needs, but the AMPTP's responses to the union's most important proposals have been insulting and disrespectful of our massive contributions to this industry." She further emphasized that until the studios engage in genuine negotiation, it will be impossible to reach a resolution.
The last time SAG-AFTRA actors went on strike against film and TV companies was in 1980, marking this as a significant and rare event. The situation is further compounded by the concurrent strike by the Writers Guild of America (WGA), which began on May 2. The industry has already experienced a significant reduction in production due to the ongoing WGA strike, and a potential SAG-AFTRA strike would further hamper scripted film and TV productions by companies represented by the AMPTP. The last time both actors and writers were on strike simultaneously was back in 1960, underlining the magnitude of the situation, according to Variety.
AMPTP disappointed by SAG-AFTRA's decision
Responding to the stalemate, the AMPTP expressed disappointment in the union's decision. In a statement, the group clarified, "We are deeply disappointed that SAG-AFTRA has decided to walk away from negotiations. This is the Union's choice, not ours. In doing so, it has dismissed our offer of historic pay and residual increases, substantially higher caps on pension and health contributions, audition protections, shortened series option periods, a groundbreaking AI proposal that protects actors' digital likenesses, and more." The AMPTP further lamented the financial hardship that thousands of individuals dependent on the industry would face due to the strike.
The primary concerns at the heart of the negotiations revolve around streaming residuals and the use of artificial intelligence. SAG-AFTRA seeks a streaming residual formula that adequately reflects the success of shows. However, the studios have been reluctant to disclose their viewership data, prompting the union to propose using metrics from Parrot Analytics, a leading third-party data firm. Additionally, the union aims to implement regulations on the use of artificial intelligence, ensuring that actors are fairly compensated for any AI-generated use of their likeness. Other issues, such as limits on self-taped auditions, are also part of the union's demands.
Who owns Parrot Analytics?
Parrot Analytics, founded by Wared Seger, emerged as a significant player in the ongoing negotiations. Seger, a technology entrepreneur with a background in neuroscience, is the founder and CEO of the company. Recognized as a leader in the industry, Seger's accolades include being named in the Variety 30 Under 30 Hollywood Leader, Forbes 40 Under 40 and The Hollywood Reporter's Upcoming Hollywood Leaders. His expertise in entertainment analytics has guided Parrot Analytics to become the industry leader in global audience demand measurement.
According to their website, the company captures over two billion expressions of demand for content and talent in over 100 languages across all platforms and in more than 200 countries. Parrot Analytics' data is instrumental in helping industry partners understand global supply and demand, leading to better production, distribution, acquisition, and marketing decisions.
That said, the union has been vocal about the impact of streaming and AI on performer compensation. In a message to its members, SAG-AFTRA emphasized that compensation had been severely eroded by the rise of the streaming ecosystem. They also expressed concerns about the existential threat that artificial intelligence posed to creative professions, advocating for contract language that protects performers from unauthorized exploitation of their identity and talent. Duncan Crabtree-Ireland, the SAG-AFTRA national executive director, emphasized on the studios' unilateral changes to the industry's business model while keeping contracts stagnant, calling it a disrespect to the union's members.
A rocky negotiation process
Negotiations between SAG-AFTRA and the studios commenced on June 7, with initial optimism about reaching a deal. However, tensions escalated over time, leading to acrimonious exchanges. Although the two sides agreed to extend the contract for an additional 12 days on June 30, hope for a resolution diminished in recent days. On Monday, July 10, studio executives proposed bringing in federal mediators to aid in resolving the dispute. While SAG-AFTRA agreed to mediation, they criticized the move as a "cynical ploy" by the studios to seek a second extension. The union remains interested in reaching a deal but has questioned the studios' commitment to bargaining in good faith.
The Federal Mediation and Conciliation Service dispatched a mediator on Wednesday, July 12, who was present for the final day of talks. Union members have been urging leadership to take a firm stance, as evidenced by a letter signed by over 2,000 actors two weeks ago. The letter urged the leadership not to settle for anything less than a "transformative" deal. Numerous SAG-AFTRA members have already joined writers on picket lines outside major studios. In an effort to prepare for a potential strike, actors received training in strike operations from WGA strike captains. In early June, SAG-AFTRA members overwhelmingly voted in favor of a strike authorization, granting leadership the power to call for an industry-wide strike if an agreement couldn't be reached.
