Hollywood is facing its biggest crisis in decades as actors and writers have gone on strike, demanding a fair share of the profits from the streaming revolution and the protection of their rights in the age of artificial intelligence.
The strike, which began on Friday, has brought the film and TV industry to a standstill, with thousands of union members picketing outside studios, streamers and production companies. The strike is the first dual strike from the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) and the Writers Guild of America (WGA) since 1960, and has drawn support from other labor unions and celebrities.
The unions say that the streaming model, which has taken over the industry in recent years, has cheated actors and writers of their residual income and reduced their work opportunities. Residuals are payments that performers and writers receive when their work is re-used beyond its initial performance, such as when a show or movie is re-aired or re-released on DVD or basic cable.
Actors and writers receive residuals when their projects are shown on streaming services, too — but according to the unions, they are compensated at a much lower rate for streaming projects, and their pay is calculated differently.
“You cannot change the business model as much as it has changed and not expect the contract to change, too,” said Fran Drescher, SAG-AFTRA president, in a fiery press conference announcing the strike. “We’re not going to keep doing incremental changes on a contract that no longer honors what is happening right now with this business model that was foisted upon us.”
The unions are also concerned about how artificial intelligence could exploit performers and writers by using their likenesses without fair compensation or consent. They want contracts that include provisions on how their work can be used in the future by technology.
“The entire business model has been changed by streaming, digital, AI. This is a moment of history that is a moment of truth. If we don’t stand tall right now, we are all going to be in trouble. We are all going to be in jeopardy of being replaced by machines and big business who cares more about Wall Street than you and your family,” said David A. Goodman, WGA president.
The strike has already affected the production and release of many shows and movies, especially on network TV and cable channels, which rely on timely content. Some of the shows that have been halted or delayed include “Saturday Night Live,” “The Late Show with Stephen Colbert,” “Grey’s Anatomy,” “This Is Us” and “Stranger Things.”
Streaming shows on Netflix, HBO Max and others are produced much further in advance than their network counterparts. The schedule will be unaffected in the short term, but the strike could delay shows meant to return later this year and in 2024.
The strike has also sparked anger and frustration among some actors and writers, who have expressed their grievances on social media and in public statements. Ron Perlman, the actor of “Hellboy,” responded to a report that the studios aimed to prolong a strike long enough for writers to lose their homes by saying in a since-deleted Instagram live video: “Listen to me, mother- (expletive), there’s a lot of ways to lose your house.”
The Alliance of Motion Picture and Television Producers (AMPTP), which represents the studios, streamers and production companies in negotiations, has called the strike “unnecessary” and “disruptive.” It has said that it has offered “significant increases” in pay and benefits to the unions, but that they have rejected them.
“We’ve talked about disruptive forces on this business and all the challenges we’re facing, the recovery from COVID which is ongoing. It’s not completely back,” said Bob Iger, Disney chief executive. “This is the worst time in the world to add to that disruption.”
The strike comes after more than a year of pandemic-induced challenges for Hollywood, which saw movie theaters shuttered, TV studios emptied and production shut down. The recovery is still ongoing, but some of the pre-pandemic Hollywood has not returned. Box office remains about 20-25% off the pre-pandemic pace.
The unions and the AMPTP have not resumed talks since the strike began, and no new date has been set for negotiations. The strike could last for weeks or months, depending on how long both sides are willing to hold out.
As Hollywood burns, many actors and writers are hoping that their strike will bring about a lasting change in the industry.
Relevant articles:
– Hollywood plunges into all-out war on the heels of pandemic and a streaming revolution, ABC News, July 17, 2023
– How Will the SAG-AFTRA Strike Affect TV Shows and Movies?, TODAY, July 17, 2023
– Why are Hollywood actors striking and how will it impact TV shows and movies?, NBC New York, July 17, 2023
– Why AI Is a Key Issue for Hollywood Actors and Writers on Strike, Business Insider, July 16, 2023