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Elizabeth Allen


NextImg:Unprecedented Double Strikes Threaten Hollywood as Actors and Writers Union Demand Greater Fairness

As the gavel comes down, the Hollywood actors’ union has voiced a unanimous call for industrial action after studios failed to reach an agreement with them.

This move may result in both performers and writers walking the picket lines as soon as this Thursday, marking a significant escalation in the labor dispute.

This crucial step towards a strike by the SAG-AFTRA actors union, representing over 160,000 members, comes after an unsuccessful round of labor talks.

The union’s national board is slated to vote on the strike order Thursday morning. Approval could signify the first time in 63 years that Hollywood studios face a simultaneous work stoppage, potentially disrupting production nationwide.

Both the SAG-AFTRA and the Writers Guild of America (WGA) are seeking heightened base pay and residuals, which are of particular importance in the current era of streaming television. The unions are also pushing for guarantees that their roles will not be usurped by AI technologies.

Fran Drescher, previously the leading lady in “The Nanny” and now serving as the president of SAG-AFTRA, said the studios’ responses have been far from satisfactory, stating that they have been “insulting and disrespectful.”

She added, “The companies have refused to meaningfully engage on some topics and on others completely stonewalled us. Until they do negotiate in good faith, we cannot begin to reach a deal.”

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The Alliance of Motion Picture and Television Producers (AMPTP), representing Netflix Inc, Walt Disney Co, and others, expressed deep disappointment at SAG-AFTRA’s decision to cease negotiations.

According to the AMPTP, they offered “historic pay and residual increases, a groundbreaking AI proposal that protects actors’ digital likenesses,” and other incentives to actors.

The AMPTP warns that SAG-AFTRA’s potential strike could intensify the financial hardships faced by those relying on the industry for their livelihoods. The ongoing writers’ strike has already thrown late-night talk shows into a loop of reruns and hampered the production of the fall TV season and big-budget movies.

A dual strike by writers and actors, a crisis not seen since 1960, would result in halting all remaining U.S.-based productions, increasing pressure on media companies to find a solution swiftly.

RELATED: ‘Spider-Man’ Actor Says He Does ‘Not Like Hollywood’: The Business ‘Really Scares Me’

At the heart of this labor unrest are disputes over base pay and residuals from streaming services.

Matt Damon, speaking at a promotional event for his film “Oppenheimer” hours before the potential strike announcement, explained, “You have to make $26,000 a year to qualify for your health insurance and there are a lot of people who get across that threshold through their residual payments.”

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Despite streaming services having spent billions on programming to lure in customers, many have yet to turn a profit. Heavy hitters like Disney, Comcast Corp’s NBC Universal, and Paramount Global reported losses amounting to hundreds of millions from streaming in the most recent quarter.

Concurrently, traditional TV audiences are dwindling, leading to a decline in television ad revenues.

The effects of the WGA’s work stoppage have reverberated throughout California and elsewhere, impacting everyone from caterers to prop suppliers who are reliant on Hollywood’s vibrant production scene. If actors join the strike, the economic fallout will likely worsen.

As a precaution, broadcast networks have announced fall schedules loaded with reality shows, which remain unaffected by the current labor discord. Similarly, independent productions that are not union-bound can continue to operate.

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