CEOs Return to SAG-AFTRA Headquarters with New Offer in Hopes of Ending Actors’ Strike
After more than 100 days of the actors’ strike, four CEOs, including Disney’s Bob Iger, are set to return to SAG-AFTRA headquarters with a new offer on Tuesday. They hope that this offer will break the stalemate and lead to a resolution. The CEOs also include David Zaslav of Warner Bros. Discovery, Ted Sarandos of Netflix, and Donna Langley of NBCUniversal. Their main goal is to salvage next summer’s box office and a portion of the 2023-24 TV season.
The strike has already had some significant impacts, with Paramount announcing that it is postponing the next “Mission: Impossible” installment from June 2024 to May 2025. If the strike is not resolved soon, further delays could follow. However, a recent call from Bob Iger to SAG-AFTRA’s top negotiator, Duncan Crabtree-Ireland, has lifted the spirits of the union leadership. They see it as confirmation that they hold the leverage to win a transformational deal.
Crabtree-Ireland is optimistic about the upcoming discussions, stating that talking is the only way to make progress. He believes that having the CEOs in the room is crucial, especially if it is accompanied by a significant move on key issues. One of the main obstacles in the negotiations is SAG-AFTRA’s demand for a cut of streaming revenue. The talks broke down on October 11 after the union proposed a fee on all streaming platforms, which the studios deemed untenable.
Fran Drescher, the president of SAG-AFTRA, argues that the entertainment business model has undergone a dramatic transformation and requires a significantly improved compensation structure. Currently, actors receive residuals from streaming, but the union is seeking an 11% increase in basic minimums and artificial intelligence protections.
The CEOs have already agreed to increase the streaming residuals figure to factor in foreign subscribers and have offered a viewership-based bonus residual patterned on the deal reached with the Writers Guild of America. However, SAG-AFTRA believes that the offered figure is too low and that the WGA deal will not be sufficient for actors.
The CEOs are expected to present their new offer on Tuesday, which is believed to be a substantial improvement from the previous proposal. Despite the two-week suspension of talks, both sides have continued working on elements of the contract, including artificial intelligence protections.
There is hope, if not complete optimism, on the studio side that a deal can be reached soon. However, frustration with SAG-AFTRA’s leadership and their focus on income disparities and transforming actors’ lives has been expressed. While negotiations are ongoing, the upbeat mood in the actors’ camp marks a change from last week when there was pressure from high-profile members, including George Clooney, to make a deal.
Nobody expects a deal to be reached on Tuesday, but it is hoped that progress will be made. With numerous unresolved items, it could take days or even a week or more to reach a comprehensive agreement. The union is seeking increases in pension and health contribution caps, a page limit on self-taped auditions, and other items, including a dry-cleaning stipend for background actors.