SAG-AFTRA and Studios Report Progress on Critical Contract Issues in Los Angeles
Los Angeles, CA – Negotiators representing the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) and the Alliance of Motion Picture and Television Producers (AMPTP) concluded their latest round of discussions in Los Angeles on Friday, June 7, signaling what sources describe as modest progress on several contentious issues central to the ongoing contract negotiations. The high-stakes talks are aimed at forging a new collective bargaining agreement before the current one expires later this summer.
The latest session in the series of discussions between the union and the studio alliance reportedly focused heavily on two pivotal areas: updating the model for streaming residuals and establishing clear guidelines for the ethical and compensated use of artificial intelligence (AI) in productions. These two issues emerged as primary drivers of the historic 2023 strikes and remain at the forefront of the current negotiation cycle, representing fundamental shifts needed to align performer compensation and rights with the realities of the modern entertainment landscape.
Deep Dive into Streaming Residuals
The issue of streaming residuals has been a major point of contention as the industry has rapidly transitioned from traditional broadcast and physical media distribution to subscription and ad-supported streaming platforms. The existing residual model, largely based on viewership metrics and distribution methods from a different era, performers argue, does not adequately compensate them for content streamed globally across multiple platforms over extended periods. SAG-AFTRA has been pushing for a residual structure that better reflects the value generated by their work in the streaming ecosystem, potentially tying payments more directly to viewership, subscriber numbers, or platform revenue.
Friday’s discussions reportedly delved into the complexities of revamping this model. While both sides acknowledge the need for some adjustment, the scale and specific mechanisms of the new residual payments remain areas where significant gaps persist. The union is seeking a more robust and transparent system that ensures performers receive fair compensation commensurate with the long-term success and reach of their streamed projects. Studio negotiators, conversely, are tasked with managing costs and finding a sustainable economic framework for the streaming era. The technical and financial intricacies of tracking usage and calculating payments across diverse global platforms add layers of complexity to reaching an agreement on this front.
Addressing the Artificial Intelligence Frontier
The rapid advancement and integration of artificial intelligence in film and television production pose unprecedented challenges and opportunities, making it a critical negotiation point. Performers are deeply concerned about the potential for AI to replicate their likenesses, voices, and performances without proper consent or compensation. This could range from using digital scans to create digital doubles for future use without additional payment, to generating entirely new performances based on existing work.
The talks on Friday, June 7, reportedly dedicated substantial time to exploring frameworks for regulating AI usage. Key aspects of these discussions included defining what constitutes the use of a performer’s likeness or performance by AI, establishing protocols for obtaining informed consent for such use, and determining appropriate compensation when AI is employed in ways that utilize or build upon a performer’s identity or work. While progress was reported on understanding each other’s concerns and outlining potential regulatory approaches, bridging the divide on specifics, particularly regarding the scope of consent required and the financial terms associated with AI usage, remains a significant hurdle.
SAG-AFTRA’s stance emphasizes the protection of performers’ identities and the right to control how their digital selves are used. They advocate for strict consent requirements and fair compensation models that prevent studios from indefinitely reusing digital assets based on performers without ongoing payment. The AMPTP, while acknowledging the need for guidelines, is likely focused on maintaining flexibility in production and exploring the cost-saving potential of AI technologies, creating a natural tension in the negotiations.
Remaining Gaps and Cautious Optimism
Despite the reported modest progress on Friday, both SAG-AFTRA and AMPTP representatives indicated that significant gaps remain on fundamental issues. Sources close to the talks highlighted that the primary areas of disagreement continue to revolve around the scale of the updated residual payments for streaming content and the precise terms and conditions related to AI consent and compensation. These are not minor details but core economic and rights issues that require careful negotiation.
Nevertheless, both sides expressed a degree of cautious optimism following the latest session. The willingness to engage deeply on these complex issues and the reported progress, however incremental, suggest a shared commitment to finding a resolution. The optimism is tempered by the recognition of the difficult work still ahead to bridge the remaining divides on the most contentious points.
The Crucial Need for a Resolution
A successful outcome in these negotiations is widely seen as crucial for stabilizing production schedules across the industry. The uncertainty surrounding the contract expiry later this summer has the potential to disrupt filming and pre-production planning. Studios and independent producers need clarity on labor costs and working conditions to greenlight projects and maintain a steady flow of content. A protracted negotiation or, in a worst-case scenario, a labor dispute, could bring filming to a halt, mirroring the significant disruptions experienced in 2023.
The impact of a potential dispute would be particularly acute in Southern California, the hub of much of the film and television production industry. A strike would affect not only performers but also countless other workers and businesses that rely on the industry’s activity, from crew members and craft services to equipment rentals and post-production houses. Therefore, reaching a timely agreement is paramount to ensuring continued employment and economic stability in the region.
The talks are expected to continue as the deadline for the current contract approaches, with both sides under pressure to finalize an agreement that addresses the performers’ key concerns regarding compensation in the digital age and the future implications of artificial intelligence, while also providing a workable framework for the studios.
