Hollywood Actors on Strike – What the SAG-AFTRA Walkout Means for the Industry

Industry News

by Mascha DeikovaJuly 14^th, 2023

The Hollywood actor’s union announced a strike, starting today. The Screen Actors Guild-American Federation of Television and Radio Artists (or SAG-AFTRA) stated that after weeks of negotiation, they were unable to secure a new, fair contract with major studios and streaming services. As a reaction, the guild’s national board voted unanimously for the work stoppage, which will affect around 160,000 film and television performers worldwide. Why are actors on strike and what does it mean for the industry? Let’s take a closer look!

Fran Drescher – an American actress and SAG president – gave quite a fierce speech during the press conference when declaring the strike. She accused Hollywood studios of being greedy, and compared working under the current contract amid major industry changes (which includes new business models like streaming and the threat of artificial intelligence-generated content replacing actors) – “moving around furniture on the Titanic.”

I am shocked by the way the people that we have been in business with are treating us. I cannot believe it, quite frankly, how far apart we are on so many things. How they plead poverty, that they’re losing money left and right, when giving hundreds of millions of dollars to their CEOs. It is disgusting. Shame on them. They stand on the wrong side of history at this very moment. We stand in solidarity, in unprecedented unity.

SAG president Fran Drescher, announcing the strike

Joined forces: actors and writers on strike

Today, Hollywood actors will join screenwriters, who had already put their “pencils down” in May on the picket lines in front of the major studios and streaming services like Warner Bros., HBO, and Amazon. It’s the first time since 1960 that both unions strike together, which will mean the biggest industry shutdown in more than 60 years. Over the past few weeks, actors were standing in solidarity with writers, yet now they can (and must!) join forces more officially.

The last united strike secured residuals for film creators from movies that were shown on television. Also, as an outcome of that fight, both WGA and SAG won new health insurance and pension plans for their members. It looks like the rapid industry change nowadays with all the video-on-demand, streaming, and technological development, also requires more substantial changes for the workers. This strike marks another historic milestone in Hollywood labor movements.

Why are actors on strike?

Just like the Writers Guild of America earlier this year, SAG went through contract negotiations with the Alliance of Motion Picture and Television Producers (AMPTP) — the entity that represents major studios and streamers, among which are Amazon, Apple, Disney, NBCUniversal, Netflix, Paramount, and Warner Bros. According to the union’s official statement, more than four weeks of bargaining brought no positive result. AMPTP “remains unwilling to offer a fair deal on the key issues that are essential to SAG-AFTRA members.“ 

The guild required streaming giants to agree to a fairer split of profits and better working conditions. This would include the protection of actors from erosion of income due to inflation and reduced residuals (a type of royalty that actors receive from airplay on TV and via streaming services), unregulated use of generative AI, and demanding self-taped auditions. However, negotiations proved to be unsuccessful. Earlier, SAG members voted overwhelmingly in favor of a strike, with 98 percent of voices supporting it and authorizing its implementation if necessary, which is now the current situation.

Concerns about AI development

One area where both parties failed to reach an agreement was the adoption of artificial intelligence, sparking a significant industry-wide debate over the past year. The Screen Actors Guild wants a guarantee that AI and computer-generated faces (so-called digital doubles) won’t be used by studios to replace actors regularly.

In their response statement, which was also issued yesterday, the AMPTP said they presented a “groundbreaking AI proposal that protects actors’ digital likenesses for SAG-AFTRA members.” However, the SAG’s national executive director and chief negotiator, Duncan Crabtree-Ireland, said the offer was unacceptable.

They propose that our background performers should be able to be scanned, get paid for one day’s pay, and their company should own that scan of their image, their likeness, and should be able to use it for the rest of eternity. So, if you think that’s a groundbreaking proposal, I suggest you think again.

Duncan Crabtree-Ireland, a quote from the press conference

What are the strike rules for the actors?

The most important point here to understand is that the SAG members must strike. During the walkout, Hollywood actors are not allowed to participate in any production covered by the AMPTP TV/Theatrical Contracts. On-camera work for films or series produced by studios with whom there is a strike, ADR (Automated Dialogue Replacement), voice acting, and narration for trailers are all prohibited. The work stoppage also includes different preproduction actions (like auditions or rehearsals), and publicity for projects under the contract (interviews, promotion via social media, red carpets, and fan conventions).

It is important to mention that non-members of SAG-AFTRA are advised against exploiting the situation and should refrain from performing for affected companies during the strike. Otherwise, they can forget about seeking future membership in the union. To read the full list of rules and the picket schedule – head over to the official strike website.

First reactions to the shutdown

Yesterday, two major feature films, “Barbie” and “Oppenheimer”, which already became a meme due to the same release date, celebrated their UK premiere. Before the strike announcement, the cast of “Barbie”, including Margot Robbie and Ryan Gosling, expressed solidarity for their actor’s union. The director of the film, Greta Gerwig, who is both a WGA and SAG member, said she is also ready to join the strike. It seems like this was the last red carpet for the movie with their attendance.

As for „Oppenheimer“, some stars of the movie – Cillian Murphy, Matt Damon, and Emily Blunt – didn’t stay for the screening and left the premiere in London as soon as the strike was called. The director Christopher Nolan said in his opening words that actors, unfortunately, couldn’t stay because they had “to write their picket signs.”

What will it mean for the industry?

Short answer: combined with the prolonged writer’s strike, it will mean major disruption in film and television production, and shutting down a lot of ongoing projects in the U.S. and some abroad. It includes some of the biggest blockbusters currently in production, like “Wonder Woman 3”, “Mufasa: The Lion King”, and “Avatar” sequels.

Also, projects with scripts that were completed before the WGA strike like HBO’s “House of the Dragon” will now have to put their work on hold. And even if the main principal photography phase is already finished, with actors not available for re-shoots or ADR, the completion of a large number of films will be impossible. Additionally, as Hollywood celebrities are not allowed to attend festivals or promote releases, some bigger events like the Emmys and Comic-Con may be rescheduled.

And of course, it also means that as a consequence of this strike, many other industry members from every area of film production will be without work and income for months to come.

What about you? How will the SAG walkout affect your work and branch? What could resolve this conflict, in your opinion? Let us know in the comments below!

Feature image credit: SAG-AFTRA