The ongoing strike between the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) and the Alliance of Motion Picture and Television Producers (AMPTP) may be nearing a resolution. After 109 days of striking, the longest in Hollywood history, negotiations over pay increases and viewership-based residuals are showing signs of progress.
The strike has had a significant impact on not only actors but also related industries that rely on the entertainment business. The California economy has suffered losses estimated at over $6.5 billion due to the shutdown of production. This has left many professionals anxiously waiting for the strike to end.
Negotiations began on October 2, but it was not until October 24 that the AMPTP increased its minimum rate offer from 5% to 7% for the first year of the new contract. In response, SAG-AFTRA lowered its demand from an 11% increase to a 9% increase for the first year. Both sides are making concessions in terms of pay increases for minimum rates.
Another key point of contention is viewership-based residuals. Initially, SAG-AFTRA demanded a 2% revenue share from streaming shows, using Parrot Analytics' Content Valuation tool to determine the value of a show. The AMPTP resisted this proposal, claiming their viewership metrics were proprietary and that social media engagement did not translate into viewership.
SAG-AFTRA removed the Content Valuation tool from their proposal but continued to push for a 2% revenue share. However, they later reduced their proposal to a 1% revenue share. The AMPTP remains firm in their refusal to accept any revenue share.
On October 11, SAG-AFTRA presented a proposal asking for 57 cents per subscriber, which would result in an estimated $500 million annually. The studios rejected this offer, calling it an "untenable economic burden." The AMPTP has offered a proposal similar to the one approved by the Writers Guild of America, which includes a 50% bonus on fixed residuals for successful shows.
Closing the $480 million gap between SAG-AFTRA and the AMPTP on the issue of viewership-based residuals is crucial to reaching an agreement and ending the strike. Negotiations are ongoing, and there is cautious optimism that a resolution may be on the horizon.