We are at a standstill: this week, Hollywood actors have joined the writers in what could be the largest strike in the history of the industry. The contract revision, which involves earnings updates, streaming regulations, and limitations on the use of Artificial Intelligence, is something completely new for the professionals - and while they fight for their rights there, we are left trying to understand exactly what is going on.
To help, we have put together a basic guide to the strike, to understand the demands of each Union and what these strikes mean for the future of Hollywood.
WHAT IS THE HOLLYWOOD STRIKE?
Hollywood actors and writers, represented by the Screen Actors Guild (SAG - AFTRA) and the Writers Guild (WGA), announced the halt of their work, that is, the initiation of a strike. While the writers have been on strike since May 2nd, actors have been on strike since July 13th.
The strike occurred after the two organizations failed to reach an agreement with the Alliance of Motion Picture and Television Producers (AMPTP), an association representing various film and series production companies such as Sony, Disney, Warner, and so on.
The negotiations failed, in general terms, because actors and writers seek an update to their contracts in a completely new era in the industry, mainly due to the dominance of streaming platforms and the use of Artificial Intelligence.
WHY ARE ACTORS ON STRIKE?
Represented by SAG President Fran Drescher, the actors are demanding a revision of residual earnings from streaming, salary increases, regulation of AI usage, limitation on pre-recorded castings, increased pensions and health plans, updated contract periods, and other contract topics [via Variety].
Among the demands, the main points of discussion are the residual earnings. As actor Sean Gunn explained recently, using the case of his work on the series Gilmore Girls, he receives a fixed amount from Warner Bros Discovery for simply including the series on the Netflix platform, regardless of the success or audience of the production - just like all casts in different concluded productions. For actors, the residual earnings for their work made available on the platforms should depend on the popularity of each production and its value to the company. The idea is to have some kind of substitute for the end of TV reruns, which used to represent substantial income sources for actors and writers.
While actors are asking for 2% of the value that each series generates for the platform (a number based on popularity studies), AMPTP argues that it would be impossible to measure the impact of each production.
Another significant point of the debate revolves around the use of Artificial Intelligence to replicate the image of different actors in a production. Under current rules, there is little regulation regarding what studios can do with actors' scanning in the future. While this point impacts every performer in Hollywood, it is especially threatening to extras and background actors in productions, who may lend their image for a day of work and be replicated in multiple scenes in a film.
According to SAG representatives, AMPTP can use the image of already scanned actors to train AI to create altered or synthetic versions to be used in production backgrounds. The Union requests consent for any individual use of actors' images, a point that AMPTP refused to accept.
WHY ARE WRITERS ON STRIKE?
The writers' demands involve the same outdated contract issues as the actors and, therefore, have several common themes. Among the main complaints of the group are the difficulty of receiving remunerations adjusted for inflation, the demand for television series with shorter seasons, and, especially, the lack of payment for residual earnings.
Like the actors, writers also receive a fixed amount for the introduction of their productions to streaming. The WGA, on strike, seeks a reevaluation of these values, considering them low given the high number of reruns, international success of productions, and reach through streaming platforms. For example, a writer for Bridgerton, Round 6, or Stranger Things, productions that help bring subscribers to Netflix, does not receive any of the profits that the platform obtains from subscriptions, advertising, or derivative products. According to the WGA's new demands, this is one of the main points that requires changes. AMPTP claims that residual rights payments to writers reached a record high in 2021, reaching nearly $500 million.
Furthermore, the writers' proposal aims to end the so-called "mini-writer's rooms," where a group of writers is hired to work on a project and then dismissed even before its production is approved. The new proposal states that writers should have at least ten guaranteed weeks of work and receive a 25% bonus.
In addition to all of this, writers demand a revision of earnings as the average salary of a writer has dropped by 4% over the past decade. Adjusted for inflation, this represents a 23% decline, explained by the new production model: series that previously had 24 episodes per season now have 8 to 12, and the mandatory gap between seasons has been eliminated. With outdated exclusive contracts, this ends up tying a writer to a production without the same gain as before - and with no forecast for the resumption of work.
Of course, Artificial Intelligence is also a topic in the fight: writers demand regulation on the use of tools that already replace revision and translation work, among others.
CAN PRODUCTIONS CONTINUE DEVELOPING IN HOLLYWOOD?
They can, theoretically. Anyone can break the strike. But the vast majority of Hollywood actors and writers are already on strike, and more productions are halting as the days go by. Outside the US, there are separate cases. While Canadian actors are also calling for a strike in the country, HBO's House of the Dragon is not affected as it is being filmed in the UK. Due to strict anti-union laws in Britain, SAG-AFTRA allows its members who are also represented by the local union to continue their professional obligations as usual.
Films and series that have already finished filming can continue with post-production, and, in fact, before the actors' strike was established, the filming of Deadpool 3, for example, was going full steam ahead without the writers. While there is no rule about productions remaining active without these professionals, the practice raises some eyebrows.
WHAT CAN'T AN ACTOR DO DURING THE STRIKE?
According to SAG rules, actors cannot perform or promote any titles, whether they are films or series, at press conferences, premieres, red carpets, or promotions at events such as San Diego Comic-Con or on social media. For this reason, this year's SDCC is empty. A great example of this was also the premiere of Oppenheimer, which took place this week. At the time of the strike announcement, the entire cast of Christopher Nolan's film left the red carpet.
Professionals are allowed to attend conventions as long as they do not participate in panels that promote newly released titles or future projects. For example, an actor can participate in a panel on a general topic such as diversity and history but cannot take the stage to talk about a specific film.
While already completed productions with upcoming releases should continue on the release schedule, the actors' strike impacts the promotion of promotional material for a film - and it impacts it greatly. That is why this week, Bruna Marquezine made a request to fans to help with the campaign for Blue Beetle, scheduled for August.
HAS A STRIKE HAPPENED BEFORE?
In every possible way. Hollywood comes to a halt, and the vast majority of ongoing productions are interrupted, and release schedules are expected to be affected, with certain delays and possible cancellations. This has already happened, in fact: the TV adaptation of the cinematic classic Metropolis, from Apple TV+, has already been canceled due to budget issues and delays caused by the writers' strike.
Additionally, the Emmy Awards, which recently announced its nominees, will certainly be postponed.
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