Actors and studios make a deal to end Hollywood strike

Actors and major Hollywood studios reached an agreement on Wednesday to end a strike that paralyzed the film and television sector in the United States for months and cost the American economy billions, according to what the actors union (SAG-AFTRA) announced.

The union explained in a statement that the strike will end on Thursday after reaching a new three-year agreement, whose value is estimated at "more than one billion dollars."

The union is scheduled to publish the details of the agreement within the next few days, but confirmed that it includes “astonishing details,” as it specifically refers to a significant increase in the minimum wage while providing guarantees regarding artificial intelligence, and the establishment “for the first time” of a reward system for reshowing works across streaming platforms.

In order for prominent stars and industry workers to resume work on film sets, the union's 160,000 members, including actors, dancers and workers in other fields, are supposed to approve the new agreement during a voting process, a step seen as a formality.

'New model' 

Big names in Hollywood celebrated the end of the strike. “Persistence pays off!” Jamie Lee Curtis wrote on Instagram.

“I am very happy that we have all reached an agreement,” Zac Efron said on the sidelines of a premiere of the movie “The Iron Claw,” adding, “Let’s resume work. I am very happy.”

Negotiations between the union and the studios have been taking place almost daily over the past two weeks, and the CEOs of Disney, Netflix, Warner Brothers, and Universal often participated in them.

The need to end the strike was urgent, as alongside a few celebrities, unemployed actors were experiencing increasing difficulties to cover their expenses.

Studios have delayed the release of blockbuster films such as “Dune: Part Two” and the next part of “Mission Impossible.”

The Alliance of Motion Picture and Television Producers (AMPTP), which represented the studios in the negotiations, described the agreement as a "new model" for the sector. He explained in a statement that the studios are "eagerly awaiting the resumption of work on productions."

Historic strike

The sector went through a historic double strike. When the actors began their strike in mid-July, the screenwriters had been on strike since the beginning of May. Hollywood has not witnessed a similar crisis since 1960.

The total cost resulting from the shutdown of the Hollywood film industry in recent months is estimated at no less than six billion dollars, according to the latest reviews of economists.

Los Angeles Mayor Karen Bass welcomed the “fair agreement,” recalling that the strike affected “millions of people” in the country.

Actors and screenwriters shared the same observation: with the exception of star actors, most of them are no longer able to earn a decent living in the streaming era.

This is not only because the platforms are now producing series with a much smaller number of episodes per season, compared to works shown on television, but also because Netflix and other platforms have significantly reduced the amounts that actors receive for each time a work is re-shown.

Unlike television works, in which the actor can be rewarded for re-showing an amount corresponding to the viewership, in streaming broadcasting the lump-sum principle was adopted, regardless of the popularity of the re-showed work.

Artificial intelligence 

The studios reached an agreement with the screenwriters at the end of September. Since then, most of them have resumed work, while negotiations with the representatives have continued.

According to the specialized press, the agreement with the actors includes an increase in the minimum wage by about 8% compared to a previous agreement, which constitutes the highest salary increase approved in decades, although it is less than what the actors originally requested.

In terms of streaming, a rewards system will be put in place for actors who play roles in successful series or films.

Controlling artificial intelligence was another prominent issue in the talks, especially in the final phase.

The actors expressed their fear that studios would use this technology to clone their voices and images and use them whenever they wanted without paying them money for that or even obtaining their approval.

AFP