In 2023, a severe Hollywood actors' strike disrupted the entertainment industry. With an agreement between labor and management, the 118-day strike has finally ended.
On the evening of November 8, 2023, local time, the Screen Actors Guild in the United States announced on its official website that an agreement had been reached with the Alliance of Motion Picture and Television Producers, officially ending the 118-day strike at 12:01 PM on November 9, marking the conclusion of the 2023 Hollywood Big Strike.
Hollywood actors began striking in mid-July, demanding an increase in the minimum wage, a share of streaming service revenue, and protection against being replaced by "digital duplicates" generated by artificial intelligence. Actors argued that with the rise of streaming, the income of working-class actors has decreased, making it challenging for them to earn a living wage in cities like Los Angeles and New York. They were also concerned that this might lead to film companies manipulating their images without permission or replacing real actors with digital photos.
The union stated that negotiators had reached a preliminary agreement with the Alliance of Motion Picture and Television Producers (AMPTP), representing companies such as Walt Disney, Netflix, and others. The final details of the agreement have yet to be publicly disclosed by either labor or management. In the coming days, union representatives will vote on the deal. Afterward, the three-year agreement will officially take effect, and Hollywood, the global hub for entertainment content production, will fully resume.
As production resumes, the good news is that many stars will return to the bustling promotion of their works. They will appear on various talk shows like SNL, "The Late Late Show," and "The Tonight Show," ushering in a "star outbreak." In addition, various events such as red carpets, awards ceremonies, and premieres will also return to normal. The bad news is that the production of multiple films and TV shows has been delayed for six months, and the sudden resumption of work may strain studios, which are limited in number and may not support simultaneous shooting of so many projects.
In terms of movies, works like Marvel's "Captain America: The First Avenger" and Warner Bros.' "Godzilla vs. Kong" have faced different degrees of delays, while Disney's three "Avatar" sequels, previously announced, are now all postponed. Given James Cameron's history of frequently delaying release dates, these sequels may face indefinite delays again, resulting in a relatively scarce offering of films in 2024.
Regarding TV shows, some highly anticipated projects have also faced delays. HBO's "The Last of Us," "Euphoria," and "The White Lotus" will have delayed seasons. Similarly, Netflix's sequels for "Wednesday," "Emily in Paris," and "One Piece" have also been delayed.
What benefits did the Hollywood Big Strike bring to the "working people"?
A three-year contract was signed on the writers' front, and the core salary has increased. In this contract, the base wage will increase annually: 5% in the first year, 4% in the second year, and 3.5% in the third year. Although some increases are relatively low or even one-time boosts, it is still considered a positive change.
Regarding the impact of AI, the contract stipulates that AI cannot be considered a writer, and content generated by AI cannot be treated as literary material. This agreement prevents major companies from using writers' works to train artificial intelligence. At the same time, writers have the right to use AI selectively, but companies cannot force its use.
Overall, the contract is valued at $2.33 billion annually, far below the $4.29 billion proposed by the Writers Guild but well above the $860 million presented by the Alliance of Motion Picture and Television Producers. This contract's new salary and benefits plan is worth over $1 billion, with a significant increase in the minimum wage, challenging industry conventions. The agreement also includes bonuses tied to viewership, residual fees, and corresponding provisions and compensation for AI.
Some foreign media analysts believe that these major companies will strive to weaken the union's bargaining power at the negotiation table. Therefore, job opportunities for writers and actors are expected to decrease in the coming years.
DreamWorks Founder Predicts AI Innovation Will Cut 90% of Animation Crew
At the New Economy Forum in Singapore, Jeffrey Katzenberg pointed out the significant impact of artificial intelligence on the animation industry. In this approximately three-minute video, Jeffrey Katzenberg expressed, "In the past, making a world-class animated film required 500 artists working for five years. I believe that in the future, with AI innovation, 90% of animation crew members can be cut, and the same tasks can be accomplished with only 10% of the original resources. I am confident that this will tremendously impact media, entertainment, and creative fields."
Jeffrey Katzenberg, 72, has worked in the media industry for over 40 years. He gained fame as the CEO and Chairman of Disney from 1984 to 1994. Subsequently, he left and co-founded DreamWorks with Steven Spielberg and David Geffen. DreamWorks is now a subsidiary of NBCUniversal.
As an advocate for new digital 3D production technology in the animation industry, he co-founded the technology investment company WndrCo in 2017. WndrCo's main business includes incubating startups (such as Quibi, targeting the high-quality short video market for mobile terminals) and investing in existing businesses, such as the digital dining guide The Infatuation and the cybersecurity company AnchorFree.
Netflix Animation Feature Department Hit by Layoffs, Strategy Shift Reduces One-Third of Workforce
According to reports, Netflix has laid off over 50 positions in its animation film department.
This round of layoffs occurred on November 1 last year. Almost one-third of the total staff in the animation feature department was mainly indirect personnel such as business affairs and production management executives. The laid-off employees include Liane Dietz, director of animation production management, who has been working at Netflix for about two years. Artists have not been affected.
An internal memo obtained by Cartoon Brew shows that Netflix is shifting its strategy for animated films to focus on delivering two in-house major films each year.
In October of last year, Netflix suspended two projects in the pre-production stage. It agreed with Skydance Animation to access its animated film pipeline to ensure a steady supply. The studio's two upcoming films, the fantasy adventure "Spellbound" and the buddy comedy "Pookoo," will premiere on Netflix in 2024 and 2025.
In an earnings interview in October, after Netflix released its third-quarter report, co-CEO Ted Sarandos stated in an earnings interview that the company remains committed to animated films, considering the continued demand from viewers for such content.
Indeed, Netflix has established an impressive record in animated films. In 2022, it released the movie "The Sea Beast" (generating 165 million hours of viewing time on the service in the first month alone) and the stop-motion animation "Guillermo del Toro's Pinocchio," the latter winning the 2023 Oscar for Best Animated Feature.
Netflix is optimistic about this strategic adjustment. In 2023, it launched a series of outstanding animations and various collaborations with external animation companies.
Concerns About the Future Impact of AI on the Animation Industry Spark Industry Attention
Jeffrey Katzenberg's remarks may pave the way for more people to enter the field of animation creation, but at the same time, they have aroused anxiety among many industry professionals.
Oscar winner Matthew A. Cherry emphasized on Twitter the necessity for the Animation Guild (TAG) to take action, calling for support and, if necessary, supporting strikes. TAG's AI special task force also tweeted almost simultaneously, although not directly mentioning Jeffrey Katzenberg's remarks, indicating that they have always been committed to protecting members' jobs from the impact of AI and are prepared to make comprehensive recommendations for future negotiations.
Director of "The Mitchells vs. the Machines," which he also wrote, Michael Rianda, aligns with this view, firmly asserting that studios should not use AI to replace artists. He is concerned that this trend has already threatened the livelihoods of animation professionals, considering now is the time to defend their rights. He points out that previous strikes have ultimately been victorious.
Animator Giancarlo Volpe encourages animation creators to draw on the experiences of their predecessors who fought against AI and won during the Hollywood Big Strike. He firmly advocates that this should also be a time to declare a position in next year's contract negotiations. Jeffrey Katzenberg's remarks are seen as touching on the most sensitive issue for animation professionals.
Director of Powerhouse Animation Studios, Danny Araya, expresses concern about the issue of artificial intelligence, believing that animation unions must take a firm stance on this issue. He warns that compromises now may lead to destructive results in the next three years. Although the Hollywood Big Strike has ended, its relevant impacts remain. Jeffrey Katzenberg's recent statements have influenced the animation industry and may even catalyze a new round of strikes.
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