It’s a turbulent time in the entertainment industry. Here’s everything we know so far about the historic strike.
For the first time in six decades, Hollywood is amid two simultaneous strikes from the unions representing actors and screenwriters. On Wednesday, July 12, the contract between the SAG-AFTRA (the Screen Actors Guild and American Federation of Television and Radio Artists) and the AMPTP (American Motion Picture and Television Producers) expired, with the SAG-AFTRA’s national board unanimously voting to order a strike in the aftermath. The SAG-AFTRA joins the WGA (Writers Guild of America), which has been on strike since May 2.
From production on films and television series grinding to a halt to actors now stepping away from promoting the summer’s newest blockbusters, the impact of the strikes goes beyond just the economic consequences. We’re breaking down what you should know about the historic double strike impacting Hollywood.
Why is the SAG-AFTRA on strike?
Similar to the justification behind the WGA’s strike, the SAG-AFTRA is concerned about the rise of the streaming entertainment model, the increased usage of artificial intelligence, and the future impact both will have on those working to create your favorite films and tv shows. For reference, residuals — which act as royalties and are payments to actors when their work continues to earn money in the form of reruns, have been drastically impacted as series nowadays can live on streaming services indefinitely and are typically limited to 10-episode season lengths.
Simply put, it means actors are working less on each job compared to the historical model, and with that compensation failing to keep up with the shifting landscape of streaming, it dramatically impacts an actor’s ability to make a steady wage.
The rise of AI has also been a severe concern for actors, as studios can easily leverage the technology to mimic an actor’s likeness or voice and then go on to create new performances without the need of the individual themselves. SAG-AFTRA leadership mentioned the need for guidelines and oversight around acceptable uses of AI in a new contract.
Does this mean actors cannot work at all?
This strike doesn’t mean actors are forbidden to work in any capacity, per se. It specifically means they cannot perform work for the companies they are striking against (which are the AMPTP members, including notable big studios such as Disney and Netflix). In solidarity with those striking, you likely won’t see actors promoting new movies, making appearances at premieres, or of course, appearing on set.
Much of the cast of Barbie and Oppenheimer have already indicated they will no longer promote their films in the short term. At the same time, blockbusters such as Marvel Studios’ Deadpool 3 have already halted production.
What is the AMPTP’s rationale?
The studios refer to the larger economic landscape and the broader impact as the justifications for not raising minimums or residuals. With many of these movie and television studios acting as an arm of a more extensive tech or business corporation that you could find listed on the New York Stock Exchange, the reality is that they are looking at the broader impact of raising minimums and residuals and how those rising costs would be carried over onto their share and stockholders.
Much like in business acumen, the studios primarily look at how the costs affect the bottom line on their balance sheet.
How significant is this strike?
This is the first double strike since 1960, which is significant in its own right, as well as the fact that both unions were driven to strike on the issue of residuals, which mirrors the driving force of the strike back in 1960. The emergence of new technology, streaming, and AI, adds a significant layer to the debate, given that this has become a rising form of how audiences consume content and will likely remain so for quite some time.
How will the strike impact TV shows, films, and other entertainment?
For now, you can expect production on upcoming television series and films to be halted, while the upcoming fall tv season programming slate will likely be shifted as well. Networks have already prepared to air more reality TV shows and unscripted programming as a temporary solution, while awards shows will also be impacted.
We saw the impact of this during the 2023 ESPYs, which were held without a host in light of the ongoing WGA strike. For ceremonies such as the Emmys, the show can’t go on without the writers, presenters, and actors who must be present to receive awards.
