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Hollywood studios shelves talks with striking actors

SAG-AFTRA strike at the Universal Studios

Talks between Hollywood studios and striking actors have been suspended after less than two weeks of negotiations.

It cast a shadow over the industry's return to work. 

The Alliance of Motion Picture and Television Producers (AMPTP) cited the Screen Actors Guild's new proposal as an "untenable economic burden." 

Read More: Hollywood Writers Approve New Contract With Studios

AMPTP represents major entertainment companies like Netflix, Disney, and Warner Bros. Discovery.

The break-off is a blow to an industry largely dormant since May due to the writer’s strike. 

If both the parties fail to reach an agreement by October end, it could risk the 2023-24 television season.

Moreover, it'll also disrupt production and release schedules for the foreseeable future.

One of the main points of contention is a viewership bonus sought by SAG, which studios argue would cost them over $800 million annually.

Read More: Hollywood Writers Officially End Five-Month Strike

The dispute over this demand dominated five days of negotiations, with limited progress on other issues like the use of artificial intelligence and new royalty rates.

SAG says its request for a 2 percent share of all streaming revenue would only cost companies like Netflix and Disney less than 57 cents per subscriber annually.

The figure is significantly lower than the alliance's estimation. 

Netflix's co-CEO, Ted Sarandos, called this demand "a bridge too far" during negotiations. 

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While studios and streamers are open to a bonus system for successful shows and movies, they resist a levy on every subscriber's fee.

Ari Emanuel, Endeavor CEO, suggested that both sides should engage in meaningful talks, emphasizing the importance of compromise. 

The AMPTP's latest offer to SAG includes additional wages, contributions to pension and health plans, and increased international streaming royalties.

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However, the Writers Guild and Directors Guild accepted the terms in their recent agreements.

Regarding artificial intelligence, the studio coalition has proposed that digital replicas of performers should require prior consent.

Moreover, any subsequent use of these replicas should also involve consent and compensation for the actors involved.

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