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SAG-AFTRA Criticizes Studios' Inadequate Offer in Response to Union's AI Demands

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SAG-AFTRA Displeased with Studios' Latest Offer in Labor Negotiations

SAG-AFTRA, the Screen Actors Guild-American Federation of Television and Radio Artists, expressed dissatisfaction with the recent labor agreement proposal put forth by Hollywood studios. According to the union, there are still "several essential items" that they cannot agree on, including guidelines related to artificial intelligence (AI) in television and film productions. The studios presented this offer as their "last, best and final" one, emphasizing their unwillingness to make further concessions. SAG-AFTRA dedicated Sunday and Monday to evaluating the deal, but it remains uncertain whether the Alliance of Motion Picture and Television Producers (AMPTP) will return to the bargaining table or if talks will officially come to a halt.

Long-Standing Labor Dispute

The work stoppage initiated by Hollywood actors in mid-July due to failed negotiations with major studios, including Disney, Paramount, Universal, Netflix, and Warner Bros. Discovery, has now entered its 116th day. Despite brief periods of resumed talks in early October, the discussions broke down, causing further delays in reaching a resolution. The primary concerns of television and film performers revolve around improving wages, working conditions, health and pension benefits, and establishing guidelines for the use of AI in future productions. Additionally, the union seeks greater transparency from streaming services regarding viewership data to ensure fair residual payments comparable to linear TV.

Impacts on the Industry

The 116-day strike has had significant repercussions, disrupting marketing campaigns and preventing the commencement of production for numerous film and television projects in Hollywood. The inability to reach a deal between SAG-AFTRA and the AMPTP has created a challenging environment for the industry, affecting both the livelihoods of actors and the overall production landscape. Disclosure: NBCUniversal, a member of the Alliance of Motion Picture and Television Producers, is the parent company of Comcast, which also owns CNBC.

Implications of SAG-AFTRA Labor Dispute on New Business Formation

The ongoing labor dispute between SAG-AFTRA and Hollywood studios has significant implications for new businesses in the film and television industry. The union's dissatisfaction with the studios' latest offer, particularly on issues related to AI guidelines, wages, and working conditions, highlights the complexities of labor negotiations in this sector.

Impact of AI Guidelines on New Businesses

The inability to agree on AI guidelines is a critical issue for new businesses planning to leverage AI in their productions. These businesses must be prepared to navigate similar challenges and ensure that their use of AI aligns with industry norms and respects the rights of actors.
Navigating Labor Disputes
The long-standing labor dispute underscores the importance of effective negotiation strategies for new businesses. As seen with the work stoppage initiated by Hollywood actors, failed negotiations can lead to significant disruptions, affecting production schedules and marketing campaigns.

Transparency in Streaming Services

SAG-AFTRA's demand for greater transparency from streaming services regarding viewership data is also noteworthy. New businesses in the streaming space must be prepared to provide such transparency to ensure fair residual payments, a factor that could influence their relationships with actors and other industry professionals.

Overcoming Industry Challenges

The inability to reach a deal between SAG-AFTRA and the AMPTP and the subsequent impact on the industry serves as a cautionary tale for new businesses. They must be prepared to navigate such challenges, devise effective strategies to manage labor disputes, and ensure fair treatment of their workforce to maintain a stable production landscape.
Story First Published at: https://www.cnbc.com/2023/11/06/sag-aftra-rejects-hollywood-studios-last-best-and-final-offer.html
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