118-day strike by Hollywood actors ends

Following the writers’ strike, the American actors’ strike also ended. The actors’ union SAG-AFTRA has reached an agreement with representatives of film studios and streaming services. The agreement provides for a significant increase in remuneration for actors, including extras, the introduction of bonuses for participation in streaming projects, as well as limiting the use of artificial intelligence.

Late yesterday evening, November 8, representatives of the American trade union SAG-AFTRA, which represents the interests of the Screen Actors Guild and the American Federation of Television and Radio Artists, came to a preliminary agreement with the Alliance of Motion Picture and Television Producers (AMPTP) and ended the strike. The actors’ strike lasted 118 days, the longest in SAG-AFTRA history. AMPTP represents the interests of Netflix, Disney, Warner Bros. Discovery, Amazon.

Detailed terms of the agreement have not yet been disclosed because it must still be ratified by SAG-AFTRA members. Among other things, it provides for the largest increase in remuneration for actors in the last 40 years, the introduction of one-time bonuses for participation in streaming projects, as well as restrictions on the use of artificial intelligence (AI) and additional payments if the use of AI worsens the situation of actors. The actors were dissatisfied with the producers’ proposal to attract extras to filming for only one day, scan their appearance and then use digital images, paying for the work once. The SAG-AFTRA statement specifically highlighted significant increases in compensation for extras.

Overall, the union estimates the total contract increase at more than $1 billion.

The actors went on strike in July, following the writers’ union, which has been on strike since May. At the end of September, the writers’ union reached an agreement with studios. Screenwriters have achieved significant increases in salaries and fees, as well as restrictions on the use of AI in script writing.

Dozens of events had to be canceled or rescheduled due to writers’ and actors’ strikes. In particular, this affected the Emmy and MTV awards. More than 10 festivals were postponed or changed the program, including the Locarno International Film Festival, the Toronto International Film Festival, etc. The filming and premieres of more than 30 films were postponed or rescheduled, including Avatar 3 and Avatar 4”, “Dune 2”, “Mission Impossible 8”, “Gran Turismo”, “Godzilla vs. King Kong: New Empire”, a new continuation of the film about Spider-Man, etc., as well as several dozen TV series and other streaming projects.

According to estimates by the Milken Institute think tank made in mid-September, the losses of Hollywood studios and streaming services due to the strike of writers and actors will amount to at least $6 billion.

According to experts, the agreement with writers and actors means that film studios and streaming services will be able to start fewer new projects than before – their number has already decreased recently amid macroeconomic instability and inflation. According to Ampere Analysis estimates, in the second half of 2022, TV channels and streaming services ordered 40% fewer series scripts than in the same period of 2019. As The New York Times writes, citing analyst estimates, the agreements will increase the cost of producing films and TV series by about 10%, and companies will most likely compensate for this by reducing the number of projects. “People are excited and excited to get back to work. But they are also keeping in mind some of the sobering challenges that lie ahead,” said John Liebman, co-CEO of production company Brillstein Entertainment Partners.

Yana Rozhdestvenskaya