LOS ANGELES – The Screen Actors Guild–American Federation of Television and Radio Artists (SAG-AFTRA) is reportedly laying the groundwork for its next round of contract negotiations with major Hollywood studios and production companies, expected to commence later this year. Sources close to the union indicate that top priorities are crystalizing, focusing intensely on issues that dominated last year’s historic strike: robust performer protections concerning artificial intelligence (AI) and significant adjustments to compensation for work distributed via streaming platforms.
The union’s strategizing reflects the profound technological and economic shifts reshaping the entertainment landscape. With the current agreement with the Alliance of Motion Picture and Television Producers (AMPTP) set to expire, SAG-AFTRA aims to solidify gains and address ongoing challenges posed by evolving production methods and content distribution models.
The Complex Challenge of Artificial Intelligence
Artificial intelligence emerged as a flashpoint during the 2023 labor stoppage, and it remains at the forefront of SAG-AFTRA’s agenda. As AI technologies become increasingly sophisticated, capable of replicating voices, likenesses, and performances, actors fear the potential for their work and even their digital identities to be used without consent or appropriate compensation.
The union is reportedly seeking comprehensive safeguards. These protections would likely involve stringent rules around the creation and use of digital replicas, requiring explicit performer consent for specific applications and ensuring fair payment when AI-generated performances based on an actor’s work are utilized. The goal is to prevent the wholesale replacement of human performers or the perpetual, uncompensated use of their digital twins.
This focus underscores a fundamental tension in the modern industry: leveraging technological innovation while preserving the value and necessity of human artistry. SAG-AFTRA’s position signals a determination to establish clear boundaries and compensation structures before AI applications become fully integrated into production workflows.
Reforming Streaming Compensation
Another cornerstone of the upcoming negotiations, according to sources, is the system by which actors are compensated for content streamed online. The traditional residual model, based on reruns and physical media sales, does not adequately capture the value or success of programming on global streaming services. Actors have long argued that the current structure does not provide a sufficient participation in the success of hit shows and films watched by millions worldwide.
SAG-AFTRA is reportedly formulating proposals aimed at creating a more equitable compensation model tied to streaming viewership and the overall success of a platform’s content. While the specifics remain under wraps, this could involve mechanisms similar to viewership-based bonuses or a percentage of streaming revenue allocated back to performers, moving away from flat, often low, buyouts.
The demand for streaming pay reform is directly linked to the shift in how audiences consume entertainment. As major studios and production companies increasingly prioritize their direct-to-consumer streaming platforms, a significant portion of content is no longer distributed through channels that historically generated substantial residual income. The union contends that performer compensation must adapt to this new reality.
Building on Past Leverage
The inclusion of AI protections and streaming compensation as primary negotiation points is a direct result of the leverage built during the 118-day strike in 2023. That work stoppage brought Hollywood production to a near standstill and highlighted the critical importance of these issues to the performer community. The previous agreement did include some initial AI safeguards, but the union views them as insufficient given the rapid pace of technological advancement.
The anticipated negotiations with the AMPTP, which represents companies like Netflix, Disney, Warner Bros. Discovery, and Universal, will be closely watched across the industry. They represent a crucial opportunity for SAG-AFTRA to codify protections and economic models that address the fundamental changes brought about by AI and streaming, ensuring performer contracts keep pace with 21st-century production and distribution.
Outlook for Negotiations
As SAG-AFTRA finalizes its proposals, the stage is set for potentially challenging discussions. The AMPTP has historically sought to manage costs and maintain flexibility in response to market pressures. However, the union’s clear focus, informed by the solidarity demonstrated in the recent strike, suggests a strong resolve to achieve meaningful progress on these key issues.
The outcome of these negotiations will not only impact the livelihoods of thousands of performers but also help define the future relationship between human creativity and emerging technologies in the global entertainment industry.
