Unexpected Turn of Events: SAG-AFTRA Talks Hit a Roadblock.
Duncan Crabtree-Ireland, the lead negotiator for SAG-AFTRA, anticipated a day of negotiations at the union’s headquarters with top executives from four major studios. However, on Wednesday evening, he received an unexpected call from the Alliance of Motion Picture and Television Producers (AMPTP) announcing the abrupt halt of talks.
“I was taken completely by surprise,” expressed Crabtree-Ireland. “Today, we were planning to have an all-day session.”
The AMPTP disclosed on Wednesday night that negotiations were suspended, citing insurmountable differences between the parties and a lack of progress in discussions.
This development adds to the string of setbacks in a challenging year, undermining the optimism that followed the resolution of the 148-day writers’ strike. The timeline for resuming talks remains uncertain, with insiders speculating it could stretch into weeks or months. Meanwhile, the industry remains suspended, compounding the impact of an already tumultuous year for labor relations.
While external observers noted some progress in the SAG-AFTRA talks since they resumed on October 2nd (after a hiatus since July), a different narrative was unfolding behind closed doors.
Crabtree-Ireland revealed that the studios rejected the union’s request for a 2% stream revenue share. In response, SAG-AFTRA presented an alternative proposal, suggesting a fixed payment per subscriber from major streaming platforms.
Among other points of contention, the parties diverge on the proposal’s projected cost. SAG-AFTRA estimates an annual expenditure of around $500 million or approximately 57 cents per subscriber. In contrast, the AMPTP, acting on behalf of the studios, assessed the cost to exceed $800 million, or roughly $1.08 per subscriber.
Regardless of the figures, CEOs argue that it is economically unviable and not a viable foundation for further negotiations. Management sources pointed out that in some international markets, the average revenue per user falls below the $1 threshold. The AMPTP extended an offer of a bonus based on viewership, modeled after the agreement reached with the WGA last month. However, SAG-AFTRA finds this proposal inadequate.
Crabtree-Ireland emphasized, “Writers and actors are compensated differently. The philosophy of it is fine, but the residual structure doesn’t work for our members.”
While the WGA secured a 50% residual bonus for shows watched by 20% of a streaming platform’s domestic subscribers within the first 90 days of release, this only applies to made-for-streaming content, which most productions do not meet. SAG-AFTRA insists on compensation for all programs on streaming platforms, including theatrical films and existing shows licensed from broadcast and cable.
Crabtree-Ireland defended this stance: “It is a very modest sharing of the massive money that they generate from our members’ work. It amounts to less than a postage stamp per year per subscriber. Is that so much to ask?”
Ted Sarandos, Netflix’s co-CEO, described the union’s subscriber-based fee as a “levy” on subscribers, deeming it a challenging addition at this stage of negotiations.
In addition to revenue-sharing, the studios and the union remain at loggerheads over other issues, such as artificial intelligence and adjustments to minimums to keep pace with inflation.
A focal point for CEOs is Fran Drescher, the union’s president, who has been actively involved in talks over the past two weeks. Drescher, renowned for her role in “The Nanny,” is credited with originating the union’s revenue-sharing concept. Studio insiders argue that Drescher is pushing for a transformative change for actors and has dedicated more time to speeches rather than engaging in productive discussions.
Comparatively, the studios believe that when the WGA resumed negotiations in late September, their leaders demonstrated a sincere intent to strike a deal, a level of commitment they do not perceive from SAG-AFTRA.
The AMPTP released its most recent proposal on Wednesday night, hoping that union members will view it as a reasonable basis for further talks. This mirrors a similar tactic employed when negotiations faltered with the WGA in mid-August, which elicited criticism from members who perceived it as an attempt to bypass leadership.
Crabtree-Ireland affirmed the union’s readiness and willingness to negotiate. Donna Langley, Chief Content Officer at NBCUniversal, and Sarandos are among the four senior studio executives who have engaged in eight bargaining sessions with SAG-AFTRA. Langley assured at the Screentime conference that executives are committed to resolving. However, just two hours after her statement, the AMPTP issued the lengthy announcement that caught the SAG-AFTRA team off guard.
“We’ve been spending time with the actors, and we want to spend as much time as it takes until we can reach a resolution and get the industry back on its feet and back to work,” Langley asserted.
On Thursday morning, Crabtree-Ireland remained resolute, emphasizing, “They’re the ones who walked away from the table — not us.”
