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After a series of meetings that were seemingly headed in the right direction, talks between the actors’ union, SAG-AFTRA, and the studio alliance, the AMPTP, have reportedly broken down.
According to reports, the meeting between the two sides on Wednesday collapsed after the actors reportedly asked for 2% of streaming revenue.
SAG-AFTRA has long said it wants a 2% cut of streaming revenue. The company executives believe that’s not a realistic ask. The AMPTP said such a concession would cost the companies more than $800 million per year and “create an untenable economic burden.”
Instead, the AMPTP said it had offered SAG-AFTRA “a first-of-its-kind success-based residual for “subscription-based streaming productions. The studio group, in its statement, also touted what it described as generous increases in minimums, foreign streaming residuals, pension and health contribution caps, and relocation allowances. [via The Los Angeles Times]
To put that number of $800 million per year into context, here is how much the highest-paid Hollywood CEOs have made in the last five years alone:
1) David Zaslav, Warner Bros. Discovery – $498M
2) Ari Emanuel, William Morris Endeavor – $346M
3) Reed Hastings. Netflix – $209M
4) Bob Iger, Disney – $195M
5) Ted Sarandos, Netflix – $192M
In addition to streaming revenues, the two sides are also far apart on the issue of artificial intelligence being used in the film industry, which actors believe is a threat to their very livelihood.
It’s certainly a disappointing development in the negotiations, especially after the writers’ union was able to ratify their new three-year deal with the studios earlier this week.
The latest actors’ strike began back in July and has been ongoing ever since, which has barred actors from both promoting their current work and signing onto/filming new projects.
Some films, however — largely produced by smaller studios — have been given interim permission to do promotion as those studios have been able to agree to SAG-AFTRA’s terms.