SAG-AFTRA sent its response to the major studios’ latest proposal Thursday as both sides appeared to be making progress toward ending the actors’ strike.
The sides are expected to resume negotiations on Friday. Both sides are trying to avoid further breakdown in talks, and both sides have strong incentives to reach an agreement.
Studios have warned that next year’s summer blockbusters could be postponed and television shows canceled if a deal is not reached next week. The union believes this is an empty threat, but is also confronted with growing unrest among its top members.
On Thursday, SAG-AFTRA reduced its call for a first-year minimum rate increase from 11% to 9%. This brought us slightly closer to the studios’ position, which is 7%.
Still, some warned against becoming too optimistic.
“Nothing has been resolved,” said a studio source.
A SAG-AFTRA spokesperson also issued a brief statement.
“SAG-AFTRA declines to comment because our negotiations are ongoing and we are highly focused on negotiating in good faith to ensure a fair deal for SAG-AFTRA members,” the spokesperson said.
The two sides still disagree on many other issues, including artificial intelligence. Some progress has been made in this area, although SAG-AFTRA continues to demand that the union be allowed to veto the use of AI in the creation of digital replicas.
The Alliance of Film and TV Producers has agreed to seek consent from artists – although the exact details are still uncertain – but has also decided to give the union veto power.
There is also a long list of unresolved issues that have received less public attention but may take a long time to resolve.
The CEOs of four major entertainment companies – Disney, Netflix, NBCUniversal and Warner Bros. Discovery – unveiled their latest offer on Tuesday.
The union, led by Fran Drescher, has insisted on taking a cut in revenue of 57 cents per global subscriber to each platform. That would bring in about $500 million a year.
The studios rejected this, saying it was “untenable”, and instead offered an increased bonus for the most watched shows.
On Tuesday, the AMPTP also offered to increase the minimum rates by 7%. The Studio Alliance had previously insisted on 5% – the same applies to the Writers Guild of America and the Directors Guild of America.
The 7% increase would “break the pattern” and allow SAG-AFTRA leadership to show members that their months on the picket lines were worth it.
The two sides spent much of Tuesday arguing over the overall value of the studios’ proposal. The studios estimate it to be worth about $1.3 billion over three years. However, SAG-AFTRA maintains that the number is inflated because actors at the top end don’t work for minimum rates and won’t see an increase. SAG-AFTRA argues that the true value is around $800 million.
SAG-AFTRA has long called for an 11% increase in minimums, saying anything else would not keep pace with inflation.