Hollywood Faces Shutdown as Actors Union Prepares for Strike

## Hollywood Actors Join Writers on Strike as Negotiations Fail Hollywood actors from The Screen Actors Guild - American Federation of Television and Radio Artists (SAG-AFTRA) are set to join the ongoing strike by film and television writers after failing to reach an agreement with producers. The strike, which will begin at midnight, marks the first tandem strike in Hollywood since 1960 and will bring the industry to a halt. During a press conference, Fran Drescher, the president of SAG-AFTRA, expressed dismay at the treatment of actors, calling the producers "a very greedy entity." The actors' union had already granted one contract extension but has refused to concede another. ### Improving Wages, Working Conditions, and AI Regulations The actors' union had entered negotiations looking to improve wages, working conditions, and health and pension benefits for its members. Additionally, they sought to establish regulations for the use of artificial intelligence (AI) in future film and television productions. The use of AI in script writing was another shared concern with the Writers Guild of America (WGA), which has been on strike since May. The WGA is focused on higher compensation and residuals for streaming shows, as well as new rules requiring studios to employ a certain number of writers for a specific period during television production. Furthermore, the WGA wants compensation for writers throughout the entire process of pre-production, production, and post-production. ### Producers Unwilling to Offer Fair Deal, Delaying Negotiations SAG-AFTRA has accused producers of being unwilling to offer a fair deal and deliberately delaying negotiations. Reports have surfaced that studio producers plan to implement tactics against writers, such as refraining from negotiating with them for several months, in the hope that they will run out of money and be forced to come to the bargaining table. Although the Alliance of Motion Picture and Television Producers (AMPTP) denies these reports, studio executives have expressed their belief that the contract requests made by writers and actors are unreasonable. ### Industry Faces Disruption Amidst Pandemic Recovery The ongoing strikes come at a time when the entertainment industry is still recovering from the impact of the coronavirus pandemic. Disney CEO Bob Iger commented on the situation, stating that the strikes will have a damaging effect on the whole business and will cause collateral damage to support services and regional economies. He expressed disappointment at the unrealistic expectations of the writers and actors during a challenging time for the industry. In conclusion, as negotiations between producers and actors have failed, Hollywood will now witness a joint strike by both writers and actors, halting film and television productions. The unions are seeking improvements in wages, working conditions, and health benefits, as well as regulations for the use of AI. Despite the potential damage to the industry and collateral effects on support services and regional economies, the producers have been unwilling to offer a fair deal, leading to the intensified strike actions. ## Conclusion: Potential Impact on New Business in the Entertainment Industry The joint strike by Hollywood writers and actors, amidst failed negotiations with producers, is poised to significantly impact the entertainment industry. This situation has the potential to greatly affect both established companies and new businesses attempting to enter the industry. Here's a "hot take" on how this topic may impact a new business: With the strike bringing film and television productions to a halt, new businesses in the entertainment industry will face substantial challenges. Productions will be delayed or canceled, disrupting release schedules and creating a hiatus in the availability of new content. This disruption can be particularly detrimental to new businesses aiming to build an audience and establish themselves in the competitive market. Furthermore, the strike highlights ongoing tensions between unions and producers, revealing potential challenges for new businesses when it comes to labor negotiations. The demands for improved wages, working conditions, and health benefits, as well as regulations for the use of AI, showcase the growing concerns of industry professionals. For new businesses, getting involved in such negotiations can be complex and may require experienced legal and labor consultants to navigate effectively. Moreover, the strikes occurring during the recovery phase of the coronavirus pandemic add an additional layer of uncertainty for new businesses. The industry is still grappling with the financial implications of theater closures and decreased revenue from streaming platforms. The collateral damage to support services and regional economies as mentioned by Disney CEO Bob Iger can indirectly impact new businesses by straining auxiliary services and partnerships. In conclusion, the ongoing strikes in Hollywood raise important considerations for new businesses in the entertainment industry. Navigating labor negotiations, managing production delays, and adapting to the changing dynamics of the industry will prove challenging. However, new businesses that approach this situation strategically, by focusing on alternative content creation and exploring niche markets, may find opportunities to thrive amidst the disruption caused by the strikes. Article First Published at: https://www.cnbc.com/2023/07/13/sag-actors-union-goes-on-strike-joining-hollywood-writers.html