Hollywood actors prepare to strike and join writers in picket lines

LOS ANGELES (Reuters) – Negotiators from the Hollywood Actors Guild unanimously recommended a strike after talks with studios stalled, paving the way for performers to join writers in picket lines Thursday and disrupting dozens of shows and movies.

The SAG-AFTRA union said its national council would vote on a strike order Thursday morning. If approved, Hollywood studios would face their first double shutdown in 63 years and be forced to halt productions across the United States.

SAG-AFTRA—Hollywood’s largest union, with 160,000 members—and the Writers Guild of America (WGA) are both demanding increases in base salaries and residuals in the era of broadcast television as well as guarantees that their work will not be replaced by artificial intelligence (AI).

Fran Drescher, former star of “The Nanny” and president of SAG-AFTRA, said the studios’ responses to the actors’ concerns were “insulting and disrespectful.”

“The companies refused to engage meaningfully on some issues and shut us out completely on others,” she said in a statement after the deadline for representatives to agree to a new contract expired at midnight on Wednesday. Until they negotiate in good faith, we cannot begin to reach an agreement.

The Alliance of Motion Picture and Television Producers (AMPTP), which is negotiating on behalf of Netflix Inc (NFLX.O), Walt Disney Co (DIS.N) and other companies, said it was “deeply disappointed that SAG-AFTRA decided to walk away from negotiations.”

The group said it offered “historic salaries and raises remaining” and “a groundbreaking artificial intelligence proposal that protects the digital likeness of actors.” Actors are concerned that their digital images will be used without their permission or appropriate compensation.

“Instead of continuing to negotiate, SAG-AFTRA has set us on a course that will deepen the financial hardships of the thousands who depend on the industry for their livelihood,” the association said.

economic damage

The strike by nearly 11,500 writers sent late-night TV talk shows into endless reruns, disrupted most production for the fall TV season and halted work on big-budget films.

SAG-AFTRA’s withdrawal would shut down the remaining studios’ productions in the United States and put more pressure on media companies to find a solution.

Hollywood hasn’t faced two simultaneous strikes since 1960, when members of the WGA and the Screen Actors Guild walked out of business in a fight over film leftovers sold to television networks.

Bob Iger, whose contract as Disney CEO was extended through the end of 2026 this week, said in an interview with CNBC Thursday that the writers and actors unions have unrealistic expectations.

“It’s very upsetting to me,” Iger said, before referring to the entertainment industry’s ongoing recovery from the outbreak of the COVID-19 pandemic. “This is the worst time in the world that increases this disorder.”

Unions are fighting over base salaries and remaining broadcast services.

“You have to make $26,000 a year to qualify for your health insurance and there are a lot of people who cross that limit with their remaining payments,” actor Matt Damon said at a promotional event for the movie “Oppenheimer” on Wednesday. “There is money being made and it needs to be allocated in a way that cares about marginalized people.”

However, many streaming services are yet to turn a profit after companies have spent billions of dollars on programming to try to attract customers.

Disney, Comcast Corp. (CMCSA.O), NBCUniversal, and Paramount Global (PARA.O) all lost hundreds of millions of dollars from broadcasting last quarter. At the same time, the advent of online video has eroded television advertising revenue as traditional television audiences shrink.

The WGA’s outage has spread across California and beyond, hitting caterers, prop suppliers and others who depend on Hollywood productions for business. The economic damage is expected to spread if actors strike, too.

Broadcast networks have already announced fall schedules packed with reality shows, which aren’t affected by current labor tensions. Independent productions not covered by union contracts can also continue.

(Reporting by Lisa Richwin) Editing by Allison Williams, Toby Chopra, Andrew Heavens, and Mark Porter

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