Hollywood Reaches Historic Agreement, Ending Industry-Wide Strike
In 2023, a major strike by SAG-AFTRA sent shockwaves through Tinseltown, but now it seems like the conflict may finally be resolved. In a groundbreaking move, the actors and studios have reached a landmark deal. 2023 witnessed significant upheaval in Hollywood as actors' strike threats reverberated through the entertainment industry, stirring concerns and uncertainty. However, recent developments indicate a potential end to this conflict as actors and studios have forged a landmark agreement, marking a pivotal moment in the entertainment landscape.
This groundbreaking move between actors and studios promises to reshape the future trajectory of beloved films and TV shows. The details of this monumental deal are set to influence various aspects of the industry, encompassing not only the livelihoods of actors but also the production, scheduling, and release of anticipated projects. This agreement holds the potential to bring about substantial shifts in the dynamics between performers and entertainment conglomerates, potentially altering compensation structures, working conditions, and the overall creative process in Hollywood.
Union rally outside of Walt Disney Studios, 500 S Buena Vista St, Burbank, CA 91521 - Photo by Evan Mack
The 2023 Hollywood Strike: A Landmark Deal
The new contract negotiated by SAG encompasses various aspects of actors' roles in the industry.
Under this agreement, actors are set to receive raises in the minimum wage for a diverse range of projects in both film and television. Effective from Nov. 9, speaking roles will see a 7% increase, followed by an additional 4% raise effective July 2024 and a subsequent 3.5% raise effective July 2025. Background actors will similarly experience an 11% increase starting Nov. 9, with comparable incremental raises in subsequent periods. Additionally, actors are slated to benefit from improved streaming residuals and performance bonuses for successful shows and movies. Success is defined by a viewership of 20% or more of a streaming service's domestic subscribers within 90 days of release or subsequent years.
These bonuses will amount to 100% of the actor's residual income, with 75% directly allocated to the actor and the remaining 25% channeled into a collaborative fund managed by representatives from both the AMPTP and SAG-AFTRA. “The objective is to distribute these funds among actors in other streaming productions, aiming to promote a more equitable distribution of earnings,” according to entertainment lawyer Jonathan Handel.
Union members standing in solidarity at Netflix Headquarters, 5808 Sunset Blvd, Los Angeles, CA 90028 - Photo by Evan Mack
Furthermore, SAG-AFTRA secured enhancements in pension benefits and implemented new guidelines regarding virtual auditions. To streamline the audition process and address potential cost and time concerns, performers must receive audition materials at least 48 hours in advance. Additionally, there are specified guidelines concerning text memorization and the prohibition of using delivery sites that entail charges, among other specified parameters.
What Led to the Strike?
The Hollywood strike of 2023 stemmed from multifaceted issues that had been brewing within the entertainment industry, culminating in widespread discontent among actors and production employees. Primarily, the dispute revolved around the terms embedded within actors' contracts, the perceived unfair distribution of profits among production entities, and concerns regarding the demanding and exhaustive working hours faced by industry personnel. The lack of protection for the union is what led to the strike, and the people involved understand the gravity of what’s at stake.
“We need to make it better for everyone from background actors to working class actors to everybody. And that includes, I guess nobody quite knows yet where it’s going to go, but it’s going somewhere. And so it’s profoundly important that we establish regulations to protect our own faces, bodies, voices from being used without our consent.”
The Impact of the Strike
The Hollywood strike of 2023 had a major impact on the entertainment industry, resulting in delays in film and television production and affecting the livelihoods of countless workers. It also caused financial losses for production companies and studios. However, the strike also shed light on labor rights and fair compensation for actors and other industry professionals, paving the way for better working conditions and fair pay in the future. The advent of artificial technology sparked unrest amongst the union. A larger portion of streaming revenue allocated to performers, enhancements in benefit plans, and safeguards implemented to prevent unrestricted utilization of artificial intelligence in replicating performances are key highlights of the contract terms. However, specifics regarding these terms will remain undisclosed until after an upcoming meeting on Friday, during which board members will assess the contract.
The negotiations, particularly the AI-related protections, have been a focal point throughout the methodical negotiation process. The impact of the strike affected the union however, it also inspired others to create amid a tumultuous time.
How Did the Strike Affect the Entertainment Industry?
• Production Delays: The entertainment industry experienced numerous delays in film and television projects, causing release dates and revenue projections to be affected.
• Economic Consequences: The strike resulted in financial losses for production companies, leading to decreased wages for crew members and ancillary businesses. According to Todd Holmes, a California State University Professor the strike has cost the California economy around $3 billion.
• Talent Exodus: As a result of the strike, some actors and filmmakers sought employment outside of the industry, resulting in talent shortages and limitations in creativity.
“I built my business the day sag during the WGA strike because I was sitting in my dentist waiting room watching the news, just so distraught that for me this is a potential solution where we build the business that we want to work for.”
The Negotiations and Deal
The negotiations and deal that concluded the 2023 Hollywood strike were the result of intense pressure and compromise from both the actors' union and the studios. After weeks of round-the-clock discussions and a series of concessions from both parties, a breakthrough was finally reached. The agreement not only ensured improved pay and working conditions for actors but also established a standard for fair negotiations in the industry.
The Landmark Deal: What It Means for the Industry
The advent of artificial intelligence (AI) in Hollywood has been a disruptive force, challenging traditional norms and practices within the entertainment industry. As technology evolves, AI's capabilities in replicating performances or generating content have presented both opportunities and challenges for actors, directors, and the entertainment workforce. Within this context, the landmark deal recently brokered between the industry stakeholders, actors, production companies, and unions holds significant implications. Beyond addressing immediate concerns such as better working conditions, fair compensation, and improved representation for industry professionals, the agreement sets a crucial precedent for navigating the evolving landscape shaped by AI and emerging technologies.
Buddy Daniels Friedman, Union Member and Voice actor explains what the introduction of A.I. means for the industry. - Photo by Evan Mack
The deal serves as a critical step in acknowledging and strategizing around the potential disruptions posed by AI in Hollywood. Safeguards against the unrestrained use of AI to recreate performances demonstrate a proactive approach to protecting the creative integrity of actors and the art of storytelling. This provision not only safeguards the livelihoods of performers but also upholds the authenticity and uniqueness of their craft.
What Changes Can We Expect to See in the Entertainment Industry?
The recent landmark deal in the entertainment industry is poised to instigate a wave of transformative changes that will fundamentally reshape various facets of the sector. As this agreement sets new standards and practices, several notable shifts are expected to unfold, promising a more dynamic and inclusive landscape.
The agreement's focus on transparency in actor compensation signifies a departure from opaque practices. We can anticipate more clarity and equity in how performers are remunerated, leading to improved working conditions and fairer treatment across the board. This transparency not only benefits actors but also fosters a culture of accountability within the industry.
Perhaps one of the most profound lessons gleaned from this saga is the potential for the strike and deal to serve as a template for future negotiations. They have laid a foundational roadmap, demonstrating how to address pertinent issues, advocate for equitable treatment, and potentially create a benchmark for forthcoming negotiations within the industry.
The lessons distilled from the Hollywood strike and the consequential deal underscore critical aspects essential for the industry's integrity and advancement. They highlight the vital importance of fair compensation, transparent negotiations, collaborative industry efforts, and the impactful influence of collective action. These lessons serve as pivotal guides, aiming to forge a more equitable, transparent, and collaborative entertainment landscape in the future.
