Striking Actors and Hollywood Studios Almost have an Approved Deal

In a significant breakthrough for the Hollywood entertainment industry, the prolonged labour crisis that had brought much of the $134 billion American movie and television business to a near-standstill is finally drawing to a close. SAG-AFTRA, the union representing tens of thousands of actors, recently reached a tentative deal with entertainment companies, marking the end of one of the longest strikes in Hollywood history.

Since May, Hollywood's assembly lines have been hampered by strikes initiated by both writers and actors. The financial impact has been widespread, affecting not only major studios but also the two million individuals working in various capacities related to TV and film production. The primary concerns revolved around streaming service pay and the potential threats posed by rapidly advancing artificial intelligence technology.

The tentative deal, subject to approval by SAG-AFTRA members, brings several significant gains for actors. These include increased compensation for streaming shows and films, improved healthcare funding, concessions on self-taped auditions, and assurances that studios will not use artificial intelligence to replicate actors' likenesses without proper compensation and approval.

While the negotiations successfully addressed several key issues, a percentage of streaming service revenue proved to be a sticking point. Despite initially proposing a 2 percent share, SAG-AFTRA eventually shifted to a per-subscriber fee. The union's president, Fran Drescher, had prioritised this demand, but companies like Netflix deemed it excessive. Instead, a new residual for streaming programmes based on performance metrics was proposed and accepted by SAG-AFTRA after adjustments.

Members of the union's negotiating committee express mixed emotions about the tentative deal, acknowledging the challenges of negotiations where compromise is inevitable. Fran Drescher, in an Instagram post, hails the agreement as "historic." The pressure from agents, crew member unions, and even prominent actors like George Clooney and Ben Affleck played a role in urging a resolution.

At 118 days, this strike became the longest in SAG-AFTRA's 90-year history. The union emphasised that details of the tentative deal would be released following a review by the national board.

The post-strike Hollywood landscape is uncertain, with analysts predicting potential job reductions for actors and writers in the coming years. The agreements, while addressing immediate concerns, may lead to cost-cutting measures by studios, including the reduction of TV show orders and the cancellation of first-look deals.

As Hollywood emerges from one of the most challenging labour crises, the agreements with writers and actors represent a historic shift. The industry now faces the task of rebuilding and navigating a changed landscape, where the power dynamic between unions and studios has experienced a notable transformation.