Fran Drescher, SAG-AFTRA president and the creator of Fran Fine, took the stage with a group of SAG-AFTRA members to announce their first strike since 1980. This strike marks a significant shift in the entertainment industry, as actors and writers demand better working conditions and compensation in the era of streaming and artificial intelligence (AI).
The strike, which is also supported by the Writers Guild of America (WGA), was prompted by the failure of negotiations between the WGA and the Alliance of Motion Picture and Television Producers (AMPTP). Both unions are seeking improved pay, working conditions, and protections for content creators in the streaming industry. They argue that the current contracts do not adequately account for the changing landscape of the entertainment business.
One of the major concerns for writers and actors is the lack of proper compensation for content made for streaming services. Unlike traditional television, where writers and actors receive royalties based on viewership and ad revenue, streamers pay a fixed residual rate for domestic and international releases. This means that even if a show becomes a massive hit, writers and actors do not receive any additional compensation.
This issue is exacerbated by the fact that streaming services guard their viewership data, making it difficult for content creators to gauge the success of their work. Without access to this data, writers and showrunners cannot make informed decisions or negotiate fair compensation. It also leads to an imbalanced financial model, with productions overloaded with expenses upfront instead of being properly compensated through residuals and royalties.
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The rise of streaming has also brought about changes in how shows are produced. Traditionally, writers would gather in rooms to discuss the trajectory of a season, ensuring continuous employment for the majority of the year. However, streaming has led to shorter seasons and minirooms, resulting in less pay, shorter gigs, and less experience for up-and-coming writers. This lack of experience is particularly detrimental to aspiring showrunners, who need hands-on experience to successfully manage the creative aspects of a show.
To address these concerns and preserve the writers’ room, the WGA proposes minimum staffing requirements for pre-greenlight rooms and during production. They also seek a minimum number of consecutive weeks of employment before a show is greenlit, along with a set number of work weeks per episode during production. Additionally, the WGA aims to establish viewership-based residuals for streaming shows and wants to regulate the use of AI to prevent it from writing or rewriting material.
However, the AMPTP has rejected all of these proposals and shows little willingness to negotiate. Studios are primarily focused on their bottom line, leading some executives to suggest that they would rather drag the strike on until union members face financial difficulties. This stance has been met with criticism, as industry leaders like Bob Iger of Disney expressed concern about the strikes and their impact on the industry.
The SAG-AFTRA and WGA strikes represent a major upheaval in the entertainment industry. Content creators are demanding fair compensation and protections in the face of a rapidly evolving business model. As streaming continues to dominate the entertainment landscape and AI poses new challenges, it is essential for unions and studios to come to a mutually beneficial agreement that supports both the creative workforce and the bottom line.
