SAG-AFTRA and studio negotiations stand suspended, AMPTP hints at a heated and divided discussion

SAG-AFTRA and the studio negotiations have been suspended. The meeting reportedly did not go too well. 

SAG-AFTRA strike

SAG-AFTRA strike

The negotiations between the actors' union SAG-AFTRA and the Hollywood studios stood suspended. The Alliance of Motion Picture and Television Producers (AMPTP) who represented the major studios in labor dealings said the negotiation was called off because of a huge divide between the two parties. According to a news report in the Los Angeles Times, the studio alliance said via an email on October 11, “After meaningful conversations, it is clear that the gap between the AMPTP and SAG-AFTRA is too great, and conversations are no longer moving us in a productive direction.”

Both the parties in the negotiations stood very divided

SAG-AFTRA which represents 160,000 artists have however maintained a staunch silence on the negotiation proceedings. The report furthermore mentioned that the negotiation meeting was unsuccessful due to a lack of compromise from both sides as they met to end the actors' month-long strike, which has vastly affected Hollywood’s economy. Some sources close to the fiasco said that the negotiation was suspended since there was some dispute over important discussions like the guild’s demand that the members receive a share of the revenue garnered by the streaming shows.

SAG-AFTRA wants revenue from the streaming shows

Reportedly, the company executives have denied the union’s demand to share the revenue with the members through the streaming shows. This would also be in addition to existing residuals when legacy entertainment companies are at a loss for money on direct-to-consumer services as they attempt to move away from the pay-TV business. The report furthermore said that SAG-AFTRA has been demanding that they need a 2% cut of the streaming revenue.

However, the company executives are of the opinion that such a demand is not realistically possible to fulfill. According to the AMPTP, such a demand will have a huge loss of more than $800 million per year for the company. Apart from this, the two parties are also trying to reach a common ground on the use of generative AI which actors are saying is a threat to their employment.