Hollywood actors are currently participating in strikes alongside TV and film writers. Every three years, unions in the entertainment industry negotiate new contracts with the Alliance of Motion Picture and Television Producers, which represents major studios and streaming networks. These contracts ensure fair pay, health and safety standards, and other benefits for workers. The Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) entered negotiations for actors’ contracts on June 7, which were set to expire on June 30. After failing to reach an agreement, SAG-AFTRA issued a strike order for its actors.
The main issue in these negotiations is the changing landscape of the entertainment industry due to streaming. The industry requires new methods of compensating actors, according to experts. Specific sticking points include wage increases to match inflation, additional residuals for successful streaming shows, concerns over the use of AI, and the shift to virtual auditions. Actors like Tallie Medel are concerned about the costs associated with self-taping auditions at home.
The strike means that actors cannot perform their usual on-camera or off-camera duties and are barred from promotion or publicity for upcoming projects. Productions have been shut down, with an estimated 80% already affected. Legacy companies like Paramount will be more harmed than streaming giants like Netflix, as the latter can continue production internationally and reduce costs due to their subscription model.
The addition of SAG-AFTRA to the strike adds more leverage for TV and film writers, who have been striking since May 2. However, there is still bitterness and mistrust between the unions and the studios, which may prolong the strikes. The strikes are predicted to continue into the fall, affecting the entire industry and its workers. This has a ripple effect on the economy, as crew members and various support roles are also affected.