Subscribe
Follow Us
The CEOs of Disney, Warner Bros. Discovery, Netflix and NCUniversal plan to return to SAG-AFTRA with a new deal that will hopefully end the strike, Variety reported.
The Big 4 calling
Bob Iger (Disney) called Duncan Crabtree-Ireland, SAG-AFTRA's head negotiator, on Saturday to ask the actors' union back to the table. David Zaslav (Warner Bros. Discovery), Ted Sarandos (Netflix) and Donna Langley (NBCUniversal) want to reach a deal to save what's left of the 2023-24 TV season and next year's summer box office.
The call from Disney reportedly boosted the moods of the actors' union leadership. Crabtree-Ireland said he is optimistic and that this could win them a deal that would transform their industry.
“There’s no way to make progress without talking,” the negotiator said. “Having them in the room is important. If that’s accompanied by a significant move on key pieces, that’s even better.”
The SAG-AFTRA wanted AI protections as well as an 11% increase in basic premiums. However, the one thing the studios don't want to give the union is their demand for a piece of the streaming revenue.
Failure to communicate
The negotiations broke down on Oct. 11 after the actors' union asked for a 57-cent-per-subscriber fee from all streaming platforms. The studios responded that it would cost them approximately $500 million annually. The AMPTP presented this as an “untenable economic burden.”
Union president Fran Drescher insisted that the dramatic transformation in the business model should also correspond to a similar compensation structure.
In 2019, actors received $91.7 million in streaming residuals. This was more than the amount earned from network reruns, but less than what came from basic cable or pay TV channels. The figure increased to roughly $126 million in 2022.
The CEOs offered SAG-AFTRA an increase and offered a streaming residual pattern based on the WGA deal. The latter refers to bonus residuals based on viewership.
This deal would come to $20 million annually, according to SAG-AFRA. The union deemed it too low, and that the WGA figures will not be enough for the actors.
The actors' union also wants to restrict the use of AI, including minimum terms, compensation and consent. It also wants to limit the training of AI based on actors' works.
A new offer to SAG-AFTRA
The upbeat mood in the actors’ camp marked a change from last week, when leadership faced pressure from George Clooney and other high-profile members to make a deal and backlash on social media over guidance that restricted members’ Halloween costumes.
There may not be a deal reached on Tuesday, even with both side willing to negotiate again. There are still many unresolved terms such as pension increases and caps on health contributions.
