Streaming services have committed to paying around $40 million annually in bonuses as part of a tentative labor agreement between the Screen Actors Guild‐American Federation of Television and Radio Artists (SAG-AFTRA) and major Hollywood studios. This groundbreaking deal, potentially valued at over $1 billion across three years, marks a significant achievement in securing fair compensation for actors in the rapidly evolving digital age. The agreement, endorsed by 86% of SAG-AFTRA’s national board, awaits ratification by union members, with voting anticipated to conclude in early December.
The key focus of the negotiation was to ensure streaming services, such as Netflix, Walt Disney, Warner Bros Discovery, and other members of the Alliance of Motion Picture and Television Producers (AMPTP), share a greater portion of revenue with actors. While initial proposals, including a per-subscriber fee, were rejected, the parties reached a consensus on the new bonus payments. This development signals a shift towards recognizing the value and contribution of actors in the streaming domain, where traditional compensation models have often been contentious. SAG-AFTRA President Fran Drescher highlighted this as a partial victory in the union’s ongoing effort to secure equitable revenue distribution for its members.
A Breakthrough for Artists: Equity and Control in the Digital Realm
Under the terms of this landmark deal, 75% of the $40 million bonus pool will be allocated to actors starring in the most popular streaming shows. The remaining 25% will form a fund to be distributed among actors in other streaming productions. This structured approach not only rewards high-performing content but also ensures a broader distribution of funds, supporting a wider range of actors participating in various streaming projects.
Moreover, the agreement introduces significant measures concerning the use of artificial intelligence (AI) in filmmaking, a topic of growing concern among artists. Studios are now required to obtain explicit consent from actors before using their images to create digital replicas. This consent must be accompanied by specific descriptions of how the images will be used, and actors are entitled to compensation equivalent to the work performed by their digital counterparts. Furthermore, the contract safeguards background performers from unauthorized use of their digital replicas, addressing ethical issues around generative AI and the creation of “synthetic, fake performers.” These provisions ensure that actors have control over their digital likenesses and are fairly compensated for their use, marking a crucial step in the protection of artists’ rights in the digital age.
This comprehensive deal, negotiated amidst intense discussions, exemplifies a proactive approach by SAG-AFTRA to adapt to the evolving landscape of entertainment production and distribution. By securing these significant gains in compensation and rights, the union demonstrates its commitment to advocating for its members in an industry continually shaped by technological advancements and changing consumption patterns.
