After nearly four months of halted productions and industry standstill, Hollywood actors are preparing to return to work. SAG-AFTRA, the labor union representing approximately 160,000 entertainment and media professionals, including actors, recording artists, and radio personalities, reached a tentative agreement with major studios on November 9th, bringing an end to their strike. This agreement, approved by the SAG-AFTRA board on November 10th with an 86% vote, now awaits ratification by union members starting November 14th.
The strike, officially ending November 9th at 12:01 a.m. PT, stemmed from failed negotiations between SAG-AFTRA and the Alliance of Motion Picture and Television Producers (AMPTP), representing industry giants like Paramount, Netflix, and Disney. SAG-AFTRA president Fran Drescher passionately articulated the gravity of the situation in a July 13th press conference, emphasizing the “existential threat” facing actors in the evolving entertainment landscape driven by streaming, digital platforms, and artificial intelligence (AI).
But Why Did The Sga Strike in the first place? What were the core issues that led Hollywood actors to take such drastic action, causing a significant disruption to the movie and television industry? Let’s delve into the key reasons behind the SAG-AFTRA strike of 2023.
Key Reasons Behind the SAG-AFTRA Strike
The heart of the SAG-AFTRA strike revolved around the demand for better compensation, improved working conditions, and crucial protections against the implications of artificial intelligence. For actors, the evolving landscape of Hollywood, particularly the rise of streaming services, had fundamentally altered the economics of their profession, leading to significant concerns about their livelihoods and future.
Fair Compensation and Streaming Residuals
One of the primary drivers of the strike was the issue of dwindling compensation, particularly concerning residuals. Residuals are payments actors receive when their work is reused beyond its initial airing, such as in reruns, DVD releases, or, crucially, streaming platforms. While residuals exist for streaming content, SAG-AFTRA argued that the compensation rates were significantly lower compared to traditional media, and the payment structure was less transparent and favorable to actors.
Alt text: SAG-AFTRA President Fran Drescher passionately addresses the media during a press conference about the actors’ strike.
Fran Drescher highlighted this erosion of earnings in an open letter to union members, stating, “As you know, over the past decade, your compensation has been severely eroded by the rise of the streaming ecosystem.” The shift to streaming had created a situation where actors felt they were not adequately compensated for the long-term value their performances generated for these platforms. The traditional residual model, designed for broadcast and cable television, simply wasn’t translating fairly to the streaming era, where content lives indefinitely online.
Concerns Over Artificial Intelligence (AI)
Another critical factor fueling the strike was the growing alarm over the potential misuse of artificial intelligence in the entertainment industry. SAG-AFTRA members voiced deep concerns about AI’s capacity to exploit performers by utilizing their digital likenesses without proper consent or fair compensation. This wasn’t just a futuristic worry; actors were already seeing instances where studios were exploring AI-driven technologies that could potentially replace human performers or devalue their work.
Alt text: Striking SAG-AFTRA members picket outside a Hollywood studio, advocating for fair contracts and AI protections.
In an open letter signed by hundreds of actors, including prominent names, the union members emphasized the need for contract protections that safeguarded their “likenesses” and ensured “fair compensation” when their work contributed to AI training. Fran Drescher further underscored the existential nature of this threat, arguing that AI posed a significant risk to “creative professions” if not properly regulated and addressed in labor agreements. Actors sought contractual language that would prevent their digital doubles or AI-generated performances from being used without their explicit consent and appropriate payment.
Working Conditions and Contract Demands
Beyond pay and AI, the strike also encompassed broader concerns about working conditions and other contractual demands. These included issues such as:
- Audition Protections: Actors sought improvements in audition processes, particularly regarding self-taped auditions and limitations on the time and effort required for auditions.
- Shorter Series Option Periods: The length of time studios could hold actors under option for television series was another point of contention. Actors desired shorter option periods to allow for more flexibility in their careers.
- Pension and Health Contributions: Ensuring robust pension and health benefits for union members was a perennial concern, particularly in the face of evolving industry employment models.
These demands, while perhaps less headline-grabbing than streaming residuals and AI, were integral to creating a fairer and more sustainable working environment for actors in the modern entertainment industry.
The Studio Response and AMPTP
The Alliance of Motion Picture and Television Producers (AMPTP), representing the studios, expressed disappointment at the strike action, stating it was “the Union’s choice, not ours.” They argued that their offers included “historic pay and residual increases,” along with advancements in pension and health contributions, audition protections, and a “groundbreaking AI proposal.”
Alt text: A news banner displays AMPTP’s statement expressing disappointment over the SAG-AFTRA strike and highlighting their offered concessions.
However, SAG-AFTRA negotiators clearly felt these offers were insufficient to address the fundamental shifts in the industry and the core concerns of their members. The union argued that the AMPTP’s proposals did not adequately account for the streaming era’s impact on actor compensation or provide robust enough safeguards against the potential threats of AI.
Impact of the Strike on Hollywood
The SAG-AFTRA strike, combined with the earlier Writers Guild of America (WGA) strike, brought Hollywood to a near standstill. Production on numerous films and television shows across the US and internationally was halted. The strike’s impact extended beyond production shutdowns. Actors, bound by strike rules, were prohibited from promoting their projects, leading to cancellations of premieres, interviews, and film festival appearances. The promotional blackout alone had significant ripple effects across the industry, affecting release schedules and marketing campaigns.
Historical Context: Previous Actors’ Strikes
This wasn’t the first time actors had taken to the picket lines. SAG-AFTRA’s last strike occurred in 1980, driven by similar concerns about residual payments in the face of emerging home entertainment technologies like videocassettes and pay cable. Notably, in 1960, actors and writers engaged in a “double strike,” a situation mirrored in 2023, marking only the second time in Hollywood history these two major guilds had struck simultaneously. Interestingly, Ronald Reagan, then president of SAG, played a key role in the 1960 actors’ strike.
What Actors Couldn’t Do During the Strike
The SAG-AFTRA strike rules were clear and comprehensive, outlining prohibited activities for union members. These restrictions included:
- Performing in Works: Actors could not work on any film, television, or other projects produced by struck companies.
- Publicizing Projects: Crucially, actors were barred from promoting their work. This meant no red carpet appearances, premieres, interviews related to struck projects, or participation in promotional events.
These restrictions were designed to maximize pressure on the studios by disrupting both production and the crucial promotional machinery of Hollywood.
Conclusion
The SAG-AFTRA strike of 2023 was a watershed moment for Hollywood, highlighting the profound challenges and transformations facing actors in the streaming age. Driven by the core issues of fair compensation in the face of evolving media consumption, concerns over the potentially disruptive impact of artificial intelligence, and the need for improved working conditions, the strike underscored the vital importance of collective bargaining and the enduring power of labor unions in advocating for their members. The tentative agreement signals a potential turning point, but the ramifications of this strike and the issues it brought to the forefront will undoubtedly shape the entertainment industry for years to come.
