Negotiations between SAG-AFTRA and Hollywood studios were postponed until Thursday after the artists’ union decided to take more time to respond to the companies’ latest proposals.
At Thursday’s in-person meeting, SAG-AFTRA will respond to the companies’ offers after sources described a lackluster return to negotiations on Tuesday. That day, management representatives—including Disney CEO Bob Iger, Netflix co-CEO Ted Sarandos, NBCUniversal Studio Group chairman and chief content officer Donna Langley, and Warner Bros. Discovery CEO David Zaslav—presented one customized version of the performance-based streaming bonus that it had previously offered to the union. It’s a version of the proposal the Writers Guild of America adopted in September to reward members for successful streaming projects.
But it’s still a far cry from what SAG-AFTRA stood for. Initially, the union demanded a share of the revenue from series broadcast on streaming platforms (2 percent, negotiators later reduced this to 1 percent). When studios expressed that this was a major sticking point, the union decided to impose a fee on streaming subscribers. The idea was that if the union could create a structure that compensated members more generously as the streaming business grew, it wouldn’t have to fight tooth and nail to improve the flow residue every three years. But the studio side also disagreed with this point and broke off negotiations on October 11 for almost two weeks, largely due to this latest request.
According to a source close to the union, the union currently estimates that the studios’ performance-based streaming bonus proposal would only affect about 40 of about 600 shows and would generate about $27 million in additional revenue per year (compared to the proposal from SAG-AFTRA over $500 million per year presented earlier this month).
On Tuesday, the studios also proposed a larger annual raise over artists’ contractual minimum wages. Management proposed a 7 percent pay increase in the first year of the contract, up from the 5 percent it had previously tabled, and 11 percent for background workers. However, SAG-AFTRA is advocating for an 11 percent increase for all artists this first year to account for inflation. Therefore, it remains to be seen how the union will react to this latest move.
According to a union source, there were still important points on the table on Tuesday that had not yet been clarified, including regulations on the use of AI, increases in streaming residuals and caps on pension and health insurance contributions. It’s widely expected that the CEOs will stay to discuss the big issues on SAG-AFTRA’s agenda, while the Alliance of Motion Picture and Television Producers’ usual negotiators handle the rest.