Hollywood is currently in turmoil as the Writers Guild of America (WGA) and the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) engage in strikes that have brought the industry to a standstill. The disputes revolve around two key issues: the use of Artificial Intelligence (AI) in scriptwriting and the matter of residuals.
These strikes have plunged Hollywood into uncharted territory, as negotiations between major studios, screenwriters, and actors have reached an impasse. For the first time in decades, both writers and actors are standing together on picket lines, demanding improved contracts and safeguarding the future of their careers. However, studio executives argue that their demands are unreasonable, leaving the industry at a deadlock.
The negotiations involve three major entities: SAG-AFTRA, representing over 160,000 members comprising actors, stunt coordinators, voiceover artists, and background actors; the WGA, representing writers across various mediums; and the Alliance of Motion Picture and Television Producers (AMPTP), representing major film studios, television networks, and streaming platforms.
The rise of streaming platforms has reshaped the entertainment landscape, altering how actors are compensated. Traditionally, actors and writers received upfront payments for their work, supplemented by residuals from syndication and reruns. However, the advent of streaming has disrupted this model, resulting in a significant decline in residuals and threatening the livelihoods of actors and writers alike.
Many actors, like Michael Patrick Lane, have seen their residuals dwindle to alarmingly low figures, unable to support themselves and their families. The erosion of residuals has delayed Lane's plans for starting a family and highlighted the financial challenges faced by working actors in Hollywood today.
AFTRA asserts that its members are striking for a fairer distribution of profits from movies and television. However, the AMPTP claims that SAG negotiators rejected a deal that offered historic pay and residual increases, choosing instead to go on strike, a decision that will inflict financial hardship on many industry workers.
Maya Gilbert-Dunbar, a dual member of SAG and the Writers Guild, running for SAG-AFTRA president, emphasizes the struggle faced by the majority of union members, who often earn just above minimum wage.
Many rely on joining SAG-AFTRA to access health insurance, but only a small fraction meets the income threshold to qualify for coverage. Furthermore, older actors are dropped from the insurance plan once they turn 65, exacerbating the challenges faced by seasoned performers.
As the strikes persist, both sides remain entrenched in their positions. Strikes often signal a breakdown in negotiations, and it may take time for the unions to return to the bargaining table. The last time both writers and actors engaged in a strike, led by then-actor Ronald Reagan, it lasted 10 weeks.
During the strike period, Hollywood stars will be notably absent from film premieres, festivals, conventions, and red carpets. Union regulations prevent actors from taking any work, including promotion and publicity for projects, as they stand in solidarity with the striking members.
