SAG-AFTRA Talks Stall Over Proposed Streaming Subscriber Levy, Says Netflix Co-CEO Ted Sarandos.
In a recent development, Ted Sarandos, co-CEO of Netflix, disclosed that negotiations between SAG-AFTRA and the AMPTP hit an impasse due to the actors union’s proposition to impose an additional fee on each streaming subscriber.
Sarandos, one of the four CEOs overseeing talks with various industry guilds, including the Writers Guild of America, expressed his disappointment at the breakdown of discussions. He revealed they had extended an offer to SAG-AFTRA, presenting a “success-based bonus” akin to the writers’ agreement, albeit at a significantly higher cost to the studios.
However, Sarandos disclosed that this proposal was rejected, and SAG-AFTRA suggested a levy on every subscriber in response. Before this, there was even a proposal for a levy on all revenue, where a set amount would be allocated to the union for each subscriber to a given service.
Sarandos emphasized the success of their deal with the Writers Guild, which was not only accepted but ratified with an overwhelming 99 percent vote. He acknowledged that each guild has distinct requirements but stressed that a levy on top of their revenue or per subscriber, lacking transparency regarding revenue per subscriber, was a step too far into the negotiation process.
The AMPTP officially suspended negotiations, citing a substantial divide between the parties. They also addressed the union’s proposition for casts to receive a share of streaming platform revenue, deeming it an economically unsustainable burden, estimated at over $800 million annually.
SAG-AFTRA, in response, conveyed their view that the studios withdrew from discussions and accused them of employing “bully tactics.” They also alleged that the studios exaggerated the cost of the proposed levy by a significant margin.
Sarandos reaffirmed the commitment of the CEOs and studios to reach an agreement as long as talks were making progress. He acknowledged that the recent discussions were less steady and progressive than they had hoped.
All studios have been deeply involved throughout this negotiation process, approaching it with the same urgency demonstrated in reopening production during the pandemic. Sarandos underscored that this agreement is paramount for the industry and all businesses supporting it.
Regarding the potential rise in production costs for studios once an agreement is reached, Sarandos stated that Netflix’s current content spending forecasts remain unchanged.
In a sad note, Sarandos addressed the tragic loss of Lior Weitzman, a member of the sound department for the Netflix original series “Bros” in Israel, who fell victim to a Hamas attack. He revealed that production on the series has been temporarily halted.
In this trying time, Sarandos extended condolences to Lior’s family and all others affected by the tragic events in Israel.
