The AMPTP and Screen Actors Guild, the representatives for the studios and actors in union discussions, have reached an agreement according to a report out of DEADLINE Hollywood. The union, led for the first time in negotiations by The Goonies star Sean Astin, reached an agreement with the studios in just their second round of discussions, well ahead of the deadline for talks, on May 2nd.
This is much different than the last go around when the union was led by The Nanny’s Fran Drescher, which ultimately led to a strike alongside the writers just a few years ago. Important context to remember is that the industry had almost eliminated itself with its last labor negotiation, and it became imperative for all parties involved to avoid a work stoppage, whether it be a lockout or strike, at all costs, giving both sides a fascinating hand that balanced a dichotomoy of being a bad hand and a good hand simultaneously, depending on which area they were trying to leverage. For the studios who do like to tout their streaming services, these aren’t financially viable yet outside of Netflix, and eliminating their biggest revenue stream for tentpoles by going on strike and putting the theatrical exhibition industry was essentially suicide, while the actors going on strike with the influx of new technology that the studios are, even if incorrectly, touting would be near-suicidal for the actors as any kind of work stoppage would bleed exhibition dry, making moviemaking an unaffordable venture without exploring the current limitations on generative artificial intelligence. Basically: a work stoppage is mutually assured destruction, and while you can negotiate from a stance of strength with how it may hurt your opponent, the foundation underneath any argument for either side ultimately wasn’t remotely solid.
The biggest wrinkle in the deal is that it followed in the WGA’s footsteps, the screenwriter guild that wasted no time coming to an agreement, and took on a four-year pact rather than the standard three-year pact, extending the time until everybody comes back to the table. This is probably ideal for the actors union, as negotiating at the same time as the other industry guilds allow them more leverage in negotiations, as a work stoppage from any branch hurts all negotiations, but it does mean there’s an extra year to allow major issues such as streaming residuals (especially if these services are to become profitable for the studios) and AI guardrails, should the technology advance the way a lot of tech companies hope, including a certain tech mogul who currently controls Paramount-Skydance and is in the process of absorbing Warner Bros as well, to squeeze the actors. With any negotiation, compromise is integral, but it’ll be interesting to see how this one plays out.
Among the major wins for the actors is an increased pension contribution for SAG-AFTRA from the studios, artificial intelligence guardrails, though the current extent is unknown, and a speculation regarding streaming residuals, which falls in line with what the WGA negotiated a month ago in a deal that was ratified just over a week ago. These were reportedly the major issues that the SAG wouldn’t budge on if they were to cave on a longer-term pact, which gives the studios significantly more control, especially in a fluctuating economy.
This leaves the DGA, the Directors Guild led by Academy Award winner Chris Nolan, as the only union still negotiating as the talks are set to resume on May 11th. Realistically, this one seems like a four-year formality, but it remains to be seen what will become of talks.
Comicbook Clique and Dirt Sheet Radio will continue to monitor the situation and keep you up-to-date.
Jameus Mooney is an entertainment writer for Comicbook Clique, having covered the entertainment industry for years. You can follow him on Twitter here, and Letterboxd here. You can also listen to his horror podcast, The 2:17 Horror Podcast, at the DeathArts XIII YouTube channel.