Striking actors and the media companies they work for have reached a standstill in negotiations for a new contract. Since SAG-AFTRA members began striking on July 14, there have been no further talks between the union and the Alliance of Motion Picture and Television Producers (AMPTP), who represents the studios. Both sides appear entrenched in their positions, with one of the union’s proposals garnering significant pushback from management.
One key proposal from SAG-AFTRA is for actors to receive a small percentage of revenue generated by successful shows and movies on streaming platforms. The union suggests setting aside 2 percent of streaming service revenue to be shared with the cast, in addition to their base salaries and residuals. To determine revenue generation, SAG-AFTRA proposes using a tool called “content valuation” from measurement firm Parrot Analytics. This tool calculates how much money a title has generated for the streaming platform, taking into account factors such as audience demand and publicly available revenue figures.
SAG-AFTRA argues that this revenue-sharing idea is necessary due to the significant changes brought about by the streaming era. These changes include shorter TV series seasons and longer gaps between seasons, which put financial strain on working actors who rely on residuals during leaner times. The union’s national executive director, Duncan Crabtree-Ireland, highlights the revenue-sharing models in major American pro sports leagues as evidence that such an arrangement is reasonable.
However, the AMPTP has raised objections to the revenue-sharing proposal. One objection is that it does not “follow the money,” as it seeks revenue from streaming platforms rather than the show’s producer. Crabtree-Ireland explains that the union would capture this revenue from streamers through existing distributor’s assumption agreements. Under these agreements, distributors take on the responsibility of paying out residuals when a studio licenses a movie or TV show to them.
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The AMPTP also characterizes the proposal as actors wanting to share in the rewards of a successful show without bearing any of the risk. Crabtree-Ireland counters this by highlighting the substantial risks actors take compared to streaming company executives. He questions the rewards that streaming executives receive and whether they warrant such compensation.
Another objection raised by the AMPTP is the use of Parrot Analytics as the arbiter of revenue. Some studio executives criticize Parrot’s demand metric, which takes into account social media engagement, arguing that it lacks scientific evidence linking engagement to viewership. Additionally, the AMPTP notes that Parrot Analytics’ content valuation metric is not readily available to those who do not pay for the company’s services, although some AMPTP members do utilize their insights.
Crabtree-Ireland states that SAG-AFTRA is open to using another metric or having AMPTP members share their books if both sides can agree. However, due to the expected resistance from the AMPTP, the union felt it necessary to provide an alternative metric to avoid being stonewalled.
In conclusion, negotiations between striking actors and media companies have hit a roadblock. SAG-AFTRA’s proposal for revenue sharing from streaming services has faced resistance from the AMPTP. Both sides have different perspectives on the risks and rewards involved, as well as the validity of using Parrot Analytics’ metrics. Despite the standstill, SAG-AFTRA remains committed to addressing the economic pressures faced by actors in the changing landscape of the entertainment industry.
