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The Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA), which represents film and television actors, voted to go on strike on July 13, 2023, after negotiations with Hollywood studios and streaming services failed to produce a deal. This is the first time SAG-AFTRA members have gone on strike since 1980, and the first time both major Hollywood unions have walked the picket lines together since 1960. The strike was joined by film and television writers who have been on strike since May 2, 2023. The dual strike action is deepening the disruption for shows and movies and increasing the pressure on the multibillion-dollar media industry.
Reasons and Demands of the Strike?
The strike came after SAG-AFTRA's contract with the Alliance of Motion Picture and Television Producers (AMPTP), representing employers including Disney, Netflix, Amazon, and others, expired, and talks broke off. The issues include the unregulated use of artificial intelligence and the effects on residual pay brought on by the streaming ecosystem that has emerged in recent years.
The unions are demanding pay increases and assurances over AI. SAG-AFTRA leaders said studios had proposed paying actors for one day's work and using their digital images in perpetuity. The AMPTP said that characterization was false and that studios had offered "groundbreaking" protections around AI use.
"I cannot believe it … how far apart we are on so many things," said SAG-AFTRA president Fran Drescher. "How they plead poverty, that they're losing money left and right when giving hundreds of millions of dollars to their CEOs. It is disgusting. Shame on them."
Who Will Feel the Impact of the Strike?
The strike will impact everyone, including the most famous and wealthiest Hollywood movie stars, but the picket lines on Friday were filled with less familiar faces that make up the majority of the union's 160,000 members. "Most of us are middle-class actors and writers, and we just want to be able to do the things that everyone else has in life and own homes and have families and pay for our lives," said actor Caitlyn Knisely.
The Alliance of Motion Picture and Television Producers (AMPTP), the group that negotiates on behalf of Netflix, Walt Disney Co, and other studios, said it had offered significant increases in compensation to SAG-AFTRA and Writers Guild of America (WGA) members. Sources close to studios argue that the companies are facing a challenging time. Many streaming services have yet to turn a profit after spending billions of dollars on programming to try and attract customers.
What Are the Celebrities Saying?
Matt Damon, a star of the upcoming film "Oppenheimer," defended fellow actors and said fair royalty payments are a lifeline for average working actors. Susan Sarandon said, "We're in an old contract for a new type of business, and it's just not working for most people."
What Are the Impacts of the Strike?
The WGA's work stoppage has rippled through California and beyond, hitting caterers, prop suppliers, and others who rely on Hollywood productions. The economic damage is expected to spread with actors now on the picket lines. The writers' strike sent late-night television talk shows into endless reruns, disrupted most production for the autumn TV season, and halted work on big-budget movies. The actors' walkout will shut down the studios' remaining U.S.-based productions of film and scripted television and hamper many overseas shoots.
The public has shown support for both the writers and actors. Outside Netflix's Hollywood offices, picketing screenwriters chanted "Pay your actors!" immediately after the strike was announced. In New York City and Los Angeles, actors marched outside the offices of Netflix, Paramount Global, and other companies, voicing demands for higher compensation for working-class actors and other gains.
What Are the Implications of the Strike for the Entertainment Industry?
The strike will have significant implications for the entertainment industry. With the dual strike action deepening the disruption for shows and movies, the economic damage will spread, hitting many businesses that rely on Hollywood productions. The media industry is already struggling with seismic changes to its business, and the strikes will only increase the pressures it faces.
How Long Will the Strike Last?
The length of the strike is uncertain, and it could last for weeks or even months. Both sides are far apart on many issues, and it is likely to take some time to reach a new deal. The strike will have a significant impact on the entertainment industry, and it remains to be seen how long it will last and what the outcome will be.
Concluding Thought's
The Hollywood actors' strike is the latest development in the entertainment industry's ongoing struggle to adapt to the digital age. With the rise of online video, traditional TV audiences are shrinking, and movie ticket sales remain below pre-pandemic levels. The strike will have far-reaching implications for the industry, and it remains to be seen how long it will last and what the outcome will be. One thing is certain: the strike will deepen the disruption for shows and movies and increase the pressure on the multibillion-dollar media industry.
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