The United States actors union SAG-AFTRA approved its new collective bargaining agreement with studios and streaming platforms, officially ending the Hollywood standstill that lasted more than six months and caused substantial losses across the industry.
In its statement, SAG-AFTRA noted that 78.33 percent of its members are union members and declared, “We are closing one of the most important chapters in recent entertainment history. This agreement signals the start of a new era.” Actors voted in favor, while 21.67 percent opposed.
As part of its push for better working conditions and concrete safeguards on the use of artificial intelligence, among other critical issues, the translating professionals’ union paused activities on July 14, marking the industry’s first joint strike in sixty years.
Roughly two and a half months earlier, the Hollywood Screen Actors Guild and the Writers Guild of America joined with AMPTP to address practical provisions that had worried performers, setting the stage for the broader renewal.
The standstill carried a heavy toll, with direct losses to the California economy estimated at about $6.5 billion and around 45,000 workers laid off, spanning transportation, logistics, apparel, and makeup sectors, according to the Bureau of Labor Statistics. By late September, negotiations between writers and AMPTP yielded a consensus that paved the way for a resumed television season and a robust 2024 film slate.
On November 8, actors secured a tentative deal with the studios to renew the agreement that had ended after a 118-day strike. Just 48 hours later, SAG-AFTRA’s negotiating committee confirmed that the board approved the document by an 86 percent majority, and that 160,000 union members would vote by December 5 to ratify.
The finalized contract, covering November 9, 2023, to June 30, 2026, includes a multibillion-dollar plan to fund new wages and health and retirement provisions. It also provides an immediate 7 percent raise in the minimum wage for actors this year, with 11 percent for extras, and projected increases of 4 percent in July next year and 3.5 percent in 2025.
A “reasonably specific” clause to address artificial intelligence
The most contentious elements centered on a mandatory, clearly defined safeguard against artificial intelligence and improvements to remaining rights, plus additional bonuses for professionals when a project they worked on is re-released on platforms.
The negotiating committee, chaired by Fran Drescher and Duncan Crabtree-Ireland, and the studios led by industry leaders such as Netflix co-CEO Ted Sarandos and Disney CEO Bob Iger, waged intense talks until a deal emerged. The unresolved issue of unauthorized AI use—potentially duplicating performers from earlier footage—was addressed with a clause described as “reasonably specific,” allowing performers to choose participation and to receive greater compensation.
Recognition of successful productions and residuals
On remaining rights, SAG-AFTRA pressed for funding these payments through a 2 percent share of the revenue streaming services earn from new subscribers, a proposal AMPTP rejected, delaying negotiations. High-profile actors, including George Clooney, pressured SAG-AFTRA toward what the studios called the “last, best and final” offer.
Actors will receive extra payments for productions that achieve substantial viewership on platforms—specifically, those generating total views equal to 20 percent of a platform’s national subscribers within the first three months in the country of origin. The distribution allocates about half to actors, a quarter to translators, and a quarter to a fund benefiting remaining union members, with the expectation of roughly $40 million annually.
Doubts about the industry’s future
Economists and digital-trend experts, including Kevin Klowden of the Milken Institute, have expressed caution about whether the agreement will meet sector needs over the next three years. Klowden noted that studios opposed initial residual revenue requirements due to uncertainty around streaming revenue and ongoing technological changes, suggesting these issues may endure.
As awards season approaches with events like the Golden Globes and anticipated premieres, the industry is eager to regain momentum. Studios may push for blockbuster releases such as the next installments of major franchises, while analysts highlight the ongoing challenge of safeguarding originality against AI-generated imagery.
Entertainment analyst Mark Young from the Marshall School of Business at the University of Southern California remains hopeful, stating that stars’ fame and fans’ desire to connect with real people, not synthetic imagery, will influence the industry’s trajectory going forward.