SAG-AFTRA Accuses Studios of “Bully Tactics” as Talks Suspended

On Wednesday night, the Alliance of Motion Picture and Television Producers declared that negotiations with SAG-AFTRA are suspended, given that the gap between the parties is “too great.”

“Negotiations between the AMPTP and SAG-AFTRA have been suspended after SAG-AFTRA presented its most recent proposal on October 11,” the trade association representing studios and streamers in negotiations said in a press release Wednesday night. “After meaningful conversations, it is clear that the gap between the AMPTP and SAG-AFTRA is too great, and conversations are no longer moving us in a productive direction.”

Early Thursday morning, SAG-AFTRA shot back at the AMPTP, telling members that the studios walked away from talks with the union and accused them of using “bully tactics.” “[The studios] intentionally misrepresented to the press the cost of the above proposal — overstating it by 60 percent,” the message to union members said. “They have done the same with AI, claiming to protect performer consent, but continuing to demand “consent” on the first day of employment for use of a performer’s digital replica for an entire cinematic universe (or any franchise project).”

The SAG-AFTRA message added, “The companies are using the same failed strategy they tried to inflict on the WGA — putting out misleading information in an attempt to fool our members into abandoning our solidarity and putting pressure on our negotiators. But, just like the writers, our members are smarter than that and will not be fooled.”

In its message, the AMPTP singled out the union’s proposal for casts to receive a cut of streaming platform revenue as “an untenable economic burden” that would cost more than $800 million per year. The trade association also referred to “numerous remaining open items” but did not explicitly state which ones those might be. When the two parties restarted negotiations Oct. 2, they still had yet to come to terms on AI regulations and minimum wage rates, among other issues.

The development came after the fifth day of negotiations between the union and studios and streamers since SAG-AFTRA initially went on strike July 14. During the renewed talks, which took place at SAG-AFTRA’s Los Angeles headquarters and which was attended by studio heads including Netflix’s Ted Sarandos, Disney’s Bob Iger, NBCUniversal’s Donna Langley and Warner Bros. Discovery’s David Zaslav, the union’s streaming revenue proposal remained a major sticking point, per sources.

In its missive, the AMPTP presented what it said was the studios’ latest offer to the performers’ union. Among the offerings, it said, was a “success-based residual” for high-budget SVOD titles, which is what the Writers Guild of America cinched in its latest negotiations. Also included were issues that SAG-AFTRA has been looking to make headway on for years: an increase to pension and health contribution caps, between 22 and 33 percent, and the incorporation of performance capture work in SAG-AFTRA’s TV/theatrical agreement. The AMPTP said it had offered the same minimum rate increases that it had offered the DGA and WGA (5 percent, 4 percent and 3.5 percent over the course of the contract) and the AMPTP additionally touted that it suggested “a 76% increase in High Budget SVOD foreign residuals for the four largest streaming services,” which suggests that the group offered SAG-AFTRA the foreign residuals formula that the Directors Guild of America and WGA received in their contract negotiations.

On the topic of AI regulations, the AMPTP said it proposed getting consent from performers and background actors to create and use “digital replicas,” with performers needing to provide written consent and be furnished with a description of the replica’s “intended use.” Additionally, no digital alterations “that would change the nature of an actor’s performance” would be able to be implemented without obtaining the performer’s consent, and digital replicas would not be able to be reused without consent and compensation.

The AMPTP concluded its Wednesday message, “We hope that SAG-AFTRA will reconsider and return to productive negotiations soon.”

The news strikes a major blow to industry workers who were hoping that the actors strike would conclude imminently, given the two parties’ quick return to negotiations following the end of the WGA strike and the entrance of major company CEOs into the bargaining room. In an appearance earlier Wednesday, NBCUniversal’s Donna Langley, who has been present in negotiations in recent days, said that executives would spend “as much time as it takes” until a resolution was reached. That timeline appears to have grown longer.

Kim Masters contributed reporting.