After four days of talks that seemed to be progressing, a fifth day of negotiations between the actors union SAG-AFTRA and the Alliance of Motion Picture and Television Producers (AMPTP) have reportedly broken down.
According to The Los Angeles Times, talks have hit a snag as two key issues – namely streaming revenue share and the use of generative A.I. – are struggling to reach common ground, leading to tensions reportedly rising over a lack of compromises.
SAG-AFTRA has long said it wants a 2% cut of streaming revenue, but the AMPTP has reportedly rebuffed the union’s demands to share streaming revenue – money that would come on top of existing residuals arrangements.
There are also complications in regard to how streaming success is calculated – especially by third party systems such as Parrot Analytics. Talks between SAG-AFTRA and the AMPTP have gone slowly, even with the major studio CEOs and SAG-AFTRA President Fran Drescher participating.
The hope has been the SAG-AFTRA and AMPTP would reach a tentative agreement soon in the wake of the WGA managing to lock in its deal after an intense few days of negotiations. However, sources for Deadline suggest that a “step back from talks looks likely”.
The actor’s strike had its 91st day today with picketing expected to continue for the near future.
Update: In a statement released by SAG-AFTRA in the early hours of this morning (via Variety), it is said talks have broken down as the gap between the sides is “too great”. The AMPTP also released a statement confirming talks are suspended.
In a statement to its members after midnight, the actor’s union accused the studios of engaging in “bully tactics” and said at one time last week they presented an offer “worth less than they proposed before the strike began”.
They add: “These companies refuse to protect performers from being replaced by AI, they refuse to increase your wages to keep up with inflation, and they refuse to share a tiny portion of the immense revenue YOUR work generates for them.”
The biggest issue reportedly surrounds the union’s revenue-sharing proposal which is said to go beyond the success-based bonuses won by the Writers Guild of America. The AMPTP claims in its own statement that it would cost $800 million a year. SAG-AFTRA says that the figure was exaggerated by 60%. SAG-AFTRA is also reportedly seeking an 11% increase in minimum rates to keep pace with inflation.
The AMPTP
