Hollywood Unions Call on Studios to Resume Talks With SAG-AFTRA Amidst $500 Million Gap in Streaming Residuals

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Hollywood Unions Urge Studios to Resume Talks With SAG-AFTRA Amidst $500 Million Gap in Streaming Residuals

Talks between major Hollywood studios and the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) have broken down, leading to a strike and the shutdown of the entertainment industry. The main point of contention is the vast gap in streaming residuals, with SAG-AFTRA demanding $500 million and the studios only willing to pay $20 million.

The issue of streaming residuals has been a significant factor in both writers’ and actors’ strikes. The Writers Guild of America (WGA) successfully secured bonus payments for streaming shows based on viewership. However, they settled for a relatively small amount, around $5 million per year. On the other hand, SAG-AFTRA has proposed that streaming platforms pay 57 cents per subscriber annually, which amounts to $500 million across all platforms.

SAG-AFTRA’s proposal involves establishing a jointly administered fund that would distribute the money to actors based on the viewership of their projects. The union has discarded an earlier proposal that relied on a third-party data provider to determine the value of each show and instead opted to use the platforms’ viewership data.

The Alliance of Motion Picture and Television Producers (AMPTP) is offering a similar proposal to what was approved by the WGA. Under this proposal, writers on successful shows would receive a 50% bonus on their fixed residuals if the shows reach a certain viewership threshold. However, applying this provision to actors would cost significantly more, according to Netflix Co-CEO Ted Sarandos.

Negotiations between SAG-AFTRA and the studios resumed on October 2 after the studio CEOs showed resistance to the union’s initial proposal of a 2% revenue share. Despite the union’s willingness to reduce the proposal to 1%, the studio CEOs continued to reject any revenue sharing arrangement. This led SAG-AFTRA to present the 57-cent-per-subscriber formula, aiming to generate as much money as the 1% revenue share. However, the studios perceived it as a repeated rejection of their previous offers and concluded that the talks were unproductive.

See also  TV Shows Remain on Hold as Writers' Strike Ends, Actors Continue Strike

The studios estimate that their latest offer is worth over $1 billion to actors over three years, primarily through higher minimum rates. The industry awaits further developments as both sides strive to bridge the substantial gap in the negotiations.

Frequently Asked Questions (FAQs) Related to the Above News

What is the main issue causing the breakdown in talks between Hollywood studios and SAG-AFTRA?

The main issue causing the breakdown in talks is the vast gap in streaming residuals. SAG-AFTRA is demanding $500 million, while the studios are only willing to pay $20 million.

How does SAG-AFTRA propose addressing the issue of streaming residuals?

SAG-AFTRA proposes establishing a jointly administered fund that would distribute the money to actors based on the viewership of their projects. They have opted to use the platforms' viewership data instead of relying on a third-party data provider.

What proposal is the Alliance of Motion Picture and Television Producers (AMPTP) offering?

AMPTP is offering a similar proposal to what was approved by the Writers Guild of America. Writers on successful shows would receive a 50% bonus on their fixed residuals if the shows reach a certain viewership threshold. However, applying this provision to actors would cost significantly more, according to Netflix Co-CEO Ted Sarandos.

When did negotiations between SAG-AFTRA and the studios resume?

Negotiations between SAG-AFTRA and the studios resumed on October 2 after the studio CEOs initially resisted the union's proposal of a 2% revenue share.

What is the studios' latest offer and how much do they estimate it is worth to actors over three years?

The studios' latest offer is worth over $1 billion to actors over three years, primarily through higher minimum rates.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

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