SAG-AFTRA Prepares for Studio Negotiations Amid AI and Residual Concerns
SAG-AFTRA is preparing for negotiations with studios on February 9, with artificial intelligence (AI) and streaming residuals identified as central issues.
Key Negotiation Points
Artificial Intelligence (AI)
The union is considering proposing a royalty, dubbed the "Tilly tax," to be paid into a union fund by studios utilizing synthetic actors. This initiative stems from concerns raised during the 2023 actors' strike, where AI was a significant point of contention.
While some AI protections were secured, the union aims to address the potential displacement of human actors by digital creations.
Brendan Bradley, a member of SAG-AFTRA's AI task force, described the concept as a pragmatic, albeit imperfect, solution.
Previous agreements with record labels and commercial producers have already established royalties for wholly synthetic performances, with equivalent pay for AI-replaced actors in commercials directed to pension and health funds. Actors express apprehension about digital replacements or the use of their performances to create AI surrogates.
Streaming Residuals
Improving streaming residuals remains a primary objective. The union seeks to establish a payment structure for streaming content that is comparable to network residuals, which historically supported actors' livelihoods through rerun payments.
During the 2023 strike, SAG-AFTRA initially sought 1% of streamers' total revenues, estimated at $500 million annually, but ultimately agreed to a streaming "success bonus" projected at $40 million annually, which has reportedly come in below expectations.
Some actors, like Jeffrey Reeves, have voiced dissatisfaction with negotiating bonuses instead of a direct pay-per-play model.
Other Issues
Additional points of discussion include lengthy hiatuses between streaming seasons and the associated exclusivity provisions that restrict series regulars from seeking other work during downtime.
Concerns regarding the continued prevalence of self-taped auditions, a practice that gained prominence during the COVID-19 pandemic and often requires actors to invest in home studio equipment, are also expected to be addressed.
Negotiation Context
Negotiations are commencing earlier than usual, several months ahead of the June 30 contract expiration, with some optimism for a deal by March.
The Alliance of Motion Picture and Television Producers (AMPTP) has a new lead negotiator, Greg Hessinger, a former SAG leader, who is perceived by some as potentially more flexible than his predecessor.
An AMPTP spokesperson stated the studios' aim to achieve a "fair deal" supporting actors and industry stability.