Hollywood Actors Reach Historic Agreement, Ending 118-Day Strike
In a groundbreaking development, Hollywood actors have successfully brought an end to the longest strike in the history of the industry, securing significant protections surrounding artificial intelligence (AI) and streaming bonuses. The tentative agreement was reached between the Alliance of Motion Picture and Television Producers (AMPTP) and SAG-AFTRA, the union representing around 160,000 actors, recording artists, announcers, and media professionals globally.
Although specific details of the deal have yet to be disclosed, it is estimated to be valued at over $1 billion. This three-year agreement will now undergo approval by the union’s board. Notably, the contract includes above-pattern minimum compensation increases and unprecedented provisions for consent and compensation, safeguarding members from potential threats related to the use of AI. Additionally, for the first time, actors will receive a streaming participation bonus.
The negotiations also addressed other vital aspects such as pension and health caps, which have been significantly raised. Background performers will experience an outsize compensation increase, and the deal includes crucial contract provisions protecting diverse communities within the industry.
The resolution of the actors’ strike comes as a relief to Hollywood. However, the lingering impact of the work stoppage has already been felt, resulting in estimated losses of approximately $6.5 billion for the Los Angeles economy. Around 45,000 jobs within the entertainment industry were affected by this double whammy strike, which followed a writer’s strike that concluded in October after nearly 150 days.
The repercussions of these strikes have also led to delays in the release of highly anticipated blockbuster titles. Sony Pictures, for example, announced the postponement of the third installment of its Venom franchise from July 12, 2024, to November 8, 2024. Paramount also rescheduled its theatrical rollout of Mission Impossible — Dead Reckoning Part Two from June 2024 to May 2025. Warner Bros.’ Dune 2 was moved from its original November 2023 release date to March 2024.
Industry experts believe that the agreement’s AI protections will set a precedent for the creative sector. Scott Purdy, KPMG’s US national media leader, acknowledges the collective sigh of relief within Hollywood and emphasizes the significance of AI-related safeguards.
As the strike concludes, Hollywood is expected to quickly resume its production activities. However, the challenges faced during the past six months have undoubtedly left a lasting impact, both economically and in terms of schedule disruptions. Nevertheless, the resolution of the strikes clears the path for the industry to bounce back and continue delivering captivating content to global audiences.
About the Author:
Alexandra Canal is a Senior Reporter at Yahoo Finance, providing insights and updates on the latest news in various industries. You can follow her on Twitter @allie_canal, connect with her on LinkedIn, and reach her via email at alexandra.canal@yahoofinance.com.
Disclaimer: The above article is for informational purposes only and does not constitute financial or investment advice. Readers are advised to seek professional guidance before making any investment decisions.
