Negotiations between the SAG-AFTRA and AMPTP will be on pause until further notice. This is after the Screen Actors Guild-American Federation of Television and Radio Artists and Hollywood studios reached a substantial divide on their deals.

However, SAG-AFTRA made it clear that the suspension is on AMPTP. LA Times reported that Hollywood studios used ‘bullying tactics' after rejecting their proposals with no counterproposals.

“The companies are using the same failed strategy they tried to inflict on the WGA — putting out misleading information in an attempt to fool our members into abandoning our solidarity and putting pressure on our negotiators,”

This won't be the first time the union and studios clashed. In fact, tensions have been rising over the past week. Both parties aimed to resolve a three-month-long actors' strike that has disrupted Hollywood's production machine. A significant sticking point has been the guild's demand for actors to receive a share of the revenue generated by streaming shows.

The AMPTP has rebuffed these demands. They contend that providing a 2% cut of streaming revenue is not feasible. “A concession would cost the companies more than $800 million per year and “create an untenable economic burden.”

Now, negotiations between SAG-AFTRA and AMPTP breakdown underscores the broader trend of increasing executive compensation compared to stagnant wages for workers. Besides that, the dispute also centers around issues like the use of generative artificial intelligence, which actors view as a threat to their livelihoods.

Although the Writers Guild of America already drew up a contract, the actors guild can't say the same for them. Since mid-July, actors have been on strike. The battle between SAG-AFTRA and AMPTP pushes for improved compensation, higher residuals, revenue sharing, and safeguards against AI replication.