Four CEOs, including Disney’s Bob Iger, are returning to SAG-AFTRA headquarters on Tuesday with a new offer in hopes of ending the actors’ strike. The other CEOs joining Iger are David Zaslav of Warner Bros. Discovery, Ted Sarandos of Netflix, and Donna Langley of NBCUniversal. Their goal is to reach a deal quickly to save next summer’s box office and part of the 2023-24 TV season. A delay in resolving the strike could result in further postponements, such as Paramount pushing back the next “Mission: Impossible” installment from June 2024 to May 2025.
SAG-AFTRA leadership received a boost when Iger reached out to invite the actors back to the bargaining table. There is a sense of optimism among union members, as the call from Iger is seen as a sign that the union holds leverage in the negotiations.
Duncan Crabtree-Ireland, SAG-AFTRA’s top negotiator, expressed his optimism as well, emphasizing the importance of the CEOs’ presence in the discussions. He stated that progress can only be made through dialogue and that significant moves from the CEOs on key issues would be even better.
The union has specific demands, including artificial intelligence protections and an 11% increase in basic minimums. However, the primary sticking point remains SAG-AFTRA’s request for a share of streaming revenue.
The negotiations broke down when the union proposed a 57-cent-per-subscriber fee on all streaming platforms. The studios deemed this demand economically unfeasible. SAG-AFTRA President Fran Drescher argues that the changing entertainment business model necessitates a significant improvement in compensation for actors.
In 2019, actors received $91.7 million in streaming residuals, surpassing earnings from network reruns but falling short of those from basic cable and pay TV channels like HBO and Showtime. The figure increased to approximately $126 million in 2022, according to the union. The CEOs have agreed to increase this amount further, considering foreign subscribers and offering a viewership-based bonus residual based on the Writers Guild of America’s deal. However, SAG-AFTRA believes the CEOs’ offer falls short of what actors deserve.
The CEOs are expected to present an improved offer on Tuesday, which is anticipated to be a substantial improvement from their previous proposal. While the negotiations have been suspended for almost two weeks, work on certain contract elements has still been ongoing. The Alliance of Motion Picture and Television Producers delivered a response on artificial intelligence last Thursday, addressing the union’s concerns regarding compensation, consent, and restricting AI training on actors’ work.
Despite frustrations with SAG-AFTRA President Fran Drescher, there is hope among studio executives that a deal can be reached soon. However, negotiations may take several more days or even a week due to the numerous unresolved items. The union is also seeking increases in pension and health contribution caps, setting a page limit for self-taped auditions, and other items like a dry-cleaning stipend for background actors.
