Hollywood is preparing for another potential showdown as SAG-AFTRA begins negotiations with major studios on Monday, just 26 months after the industry-paralyzing strikes of 2023 ended.
The actors’ union will meet with the Alliance of Motion Picture and Television Producers (AMPTP) nearly five months before their current contract expires on June 30. This early start to negotiations represents a significant change from the last-minute talks that preceded the 2023 strikes.
“We look forward to working collaboratively with our partners at SAG-AFTRA as we commence formal bargaining,” an AMPTP spokesperson said in a statement. “By taking the time to thoughtfully engage on the challenges confronting our industry, we are optimistic that, together, we can reach a fair deal.”
The negotiations take place in a dramatically different Hollywood landscape. Production has slowed significantly since 2023, with many entertainment companies struggling to adapt to the streaming-dominated market. Work opportunities have diminished for actors, writers, and directors across the industry.
Three key issues are expected to dominate the talks:
- Healthcare and pension funding – The economic pressures of recent years have strained guild benefit plans. Studios may seek a longer five-year contract instead of the standard three years in exchange for increased healthcare funding.
- Streaming compensation – The previous contract established a bonus structure for hit streaming shows, but payments have fallen short of projections. Talent representatives want significant adjustments to ensure fair compensation.
- AI protections – Despite gaining “informed consent and compensation” protections in 2023, actors remain concerned about rapidly advancing AI technology. SAG-AFTRA is reportedly considering a “Tilly Tax” that would require studios to pay royalties when using synthetic actors.
The negotiations feature new leadership on both sides. SAG-AFTRA is now led by “Lord of the Rings” star Sean Astin, while Greg Hessinger heads the AMPTP. Hessinger, who previously led both SAG and AFTRA, is expected to bring a different negotiating style than his predecessor.
Industry insiders have described the 2023 negotiations as an “unmitigated catastrophe” and “absolute disaster,” according to talent representatives who spoke to The Ankler. However, many express cautious optimism that the extended timeline might lead to more productive talks.
Writers Guild of America (WGA) and Directors Guild of America (DGA) contracts also expire this year, with their negotiations expected to follow the SAG-AFTRA talks.
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