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Negotiations between the major entertainment studios and the union representing tens of thousands of actors have collapsed, with both sides saying on Thursday morning that they remained far apart on the most significant issues.<\/p>\n
The Alliance of Motion Picture and Television Producers, which bargains on behalf of the studios, said that it was suspending talks because they were \u201cno longer moving us in a productive direction\u201d after a session on Wednesday. SAG-AFTRA, the actors\u2019 union, which has been on strike since July, accused studio executives of \u201cbully tactics,\u201d and said the studios recently presented an offer \u201cthat was, shockingly, worth less than they proposed before the strike began.\u201d<\/p>\n
The collapse of the negotiations is a significant setback for the entertainment industry, which has essentially been at a standstill for months because of dual strikes by actors and screenwriters. On Monday, more than 8,000 screenwriters ratified a new three-year contract with the studio alliance, formally ending their monthslong labor dispute. There was optimism that a deal with the actors would follow and that Hollywood could soon fully roar back to life.<\/p>\n
But with actors continuing to strike, most television and movie production remains suspended. The financial fallout has been significant. The California economy has lost an estimated $5 billion. Tens of thousands of behind-the-scenes workers have been out of work for months. Share prices for many major media companies have dropped, and now there is a further threat to next year\u2019s box office results.<\/p>\n<\/div>\n<\/div>\n
Like their counterparts in the screenwriters guild, leaders of the actors\u2019 union have called this moment \u201cexistential.\u201d They are seeking wage increases, as well as protections around the use of artificial intelligence. Actors have now been on strike for 91 days; screenwriters recently returned to work after a 148-day walkout. The last time both unions had been on strike at the same time was 1960.<\/p>\n
When negotiations between the actors\u2019 union and the studios resumed last week \u2014 just days after the studios and screenwriters had reached a tentative agreement \u2014 it represented the first time that the sides had met since the actors went on strike on July 14. There were five bargaining sessions, and many industry observers believed that the talks would soon lead to a deal.<\/p>\n
In a statement released early Thursday morning, the studio alliance said it had offered wage increases, met \u201cnearly all of the union\u2019s demands on casting\u201d and proposed further protections around the use of A.I. The alliance also said it offered \u201cthe same terms that were ratified\u201d by both the writers\u2019 and directors\u2019 unions regarding wage increases and streaming royalties.<\/p>\n
The alliance also said, however, that the actors\u2019 union wanted a viewership bonus that \u201cwould cost more than $800 million per year, which would create an untenable economic burden.\u201d<\/p>\n
Union leaders accused studio executives of walking away from the bargaining table \u201cafter refusing to counter our latest offer.\u201d<\/p>\n<\/div>\n<\/div>\n
\u201cThese companies refuse to protect performers from being replaced by artificial intelligence, they refuse to increase your wages to keep up with inflation, and they refuse to share a tiny portion of the immense revenue YOUR work generates for them,\u201d union officials said in a statement addressed to members. <\/p>\n
\u201cOur resolve is unwavering,\u201d the statement continued. \u201cJoin us on picket lines and at solidarity events around the country and let your voices be heard.\u201d<\/p>\n<\/div>\n<\/div>\n