Explained: Why Hollywood actors and writers are on strike across the US
Hollywood stars rally with actors and screenwriters at the picket line as Gen AI and conflict over unfair payment trigger the biggest protest to fight the clout of big studio bosses.
Stars of Oppenheimer left the premiere of their film an hour early. So did the cast of Barbie, who were promoting their film simultaneously. All of this was to mark the announcement of a nationwide actors’ strike in solidarity with the writers’ strike in Hollywood.
A rare and momentous event is happening—Hollywood studio lots have fallen silent, Klieg lights are turned off, and cameras are not on trolleys.
After nearly six decades, according to an Associated Press report, about 65,000 actors and 11,500 screenwriters in the US have united in a historic strike to stop working. Their demand: two major issues simmering in the entertainment industry for years—pay disparity and the looming threat of generative AI (artificial intelligence).
The SAG-AFTRA and the WGA have joined forces to protest against the Alliance of Motion Picture and Television Producers (AMPTP) | Image source: Twitter
The Screen Actors Guild/American Federation of Television and Radio Artists (SAG-AFTRA) and the Writers Guild of America (WGA) have joined forces to protest against the Alliance of Motion Picture and Television Producers (AMPTP). AMPTP represents major studio bosses and producers, including Sony Pictures, Universal Pictures, Paramount Pictures, Walt Disney Studios, and Warner Bros.; broadcast television networks FOX, NBC, ABC, and CBS; and streaming giants Netflix, Amazon, and Apple TV+, among others.
The protests have brought all production, filming, and a significant portion of promotions to a halt, with actors like Tom Cruise passionately advocating for the demands of the talent community. Some films with independent companies like A24—not members of the AMPTP—continue shooting, but they are a very small percentage of the bulk of Hollywood’s entertainment production.
Pay disparity
Actors and writers demand better compensation for their work as income inequality in Hollywood reaches alarming levels. Almost all actors on strike don’t make more than $26,000 a year. Studio executives, on the other hand, take home millions of dollars annually, and employees clock salaries in hundreds of thousands a year.
Meanwhile, streaming giants make hefty profits from web series licensing deals, while the talent behind these successful shows often misses out on their fair share. Residual payments, when shows are broadcast on different platforms or TV networks globally—crucial for actors and writers—are frequently neglected or renegotiated without keeping talent in the loop.
Stars like Brian Cox (Succession) and Sydney Sweeney (Euphoria) have spoken about not being paid their residuals on social media and interviews. With stars of OTT and cinema facing zero residual payment over repeat and licensed shows, the chances of an actor getting any payment at all are almost zero under the current circumstances.
The alarming threat of generative AI
It is essential to understand the multiple factors that have compelled screenwriters to go on strike. Besides the residual pay, writer-producer median pay is another issue—where despite a show being a success in global markets, writers and producers get paid proportionately less than they did about a decade ago.
While this is a core demand for writers, the bigger threat is from Gen AI. Hollywood studio bosses made an alarming statement when they said the first full-fledged feature film script written by generative AI will be out in 2024.
In the Joan is Awful episode from the sixth season of Netflix show Black Mirror, show creators used AI to bring Salma Hayek’s titular character to life without the actor’s consent.
Actors do not get paid or get a say in how their images, captured during regular shoots or from social media posts, are used. It poses a serious risk, one of the many points listed on the SAG-AFTRA’s list.
The writers are calling for a three-pronged demand—first, they want assurances that studios won’t hire gen AI to make scripts. Second, studios won’t use writers to rewrite or work on AI-generated scripts. Third, studios will not use scripts written by human beings as data to feed the AI and train it on scripts.
Notably, the demands specific to the use of Gen AI involve no money commitments from studios. All writers want is assurance that their jobs won’t be taken away by tech.
Mark Ruffalo supporting the Writers Guild of America strike | Image source: Twitter
Renowned Hollywood stars like George Clooney, Brad Pitt, and others have rallied in support of the strike, highlighting the urgent need to address the exploitation of AI in the entertainment industry.
Tom Cruise joined in a SAG-AFTRA meeting in June to argue against the use of Gen AI and push for better healthcare and payment for Hollywood’s stuntmen.
However, the issues at stake are complex, as the entertainment business has faced financial struggles in recent years, with streaming gaining popularity while traditional movie theatres face challenges.
The ongoing deadlock and rejected proposals
If one goes by reports, the producers claim to have offered additional benefits worth $1 billion to actors before the strike. However, the actors' unions have rejected them as totally inadequate and built to systematically exploit acting and writing talent.
For instance, a respected screenwriter, Alex O’Keefe, got no residual pay for his stellar writing of the series The Bear. He worked out a one-room apartment without heat in the winter of Chicago, and when the show won an Emmy nomination for writing, he had to buy a bow tie on credit owing to his negative bank balance.
O’Keefe’s story is in stark contrast to the fact that in 2022, eight studio bosses collectively took home a pay cheque of over $770 million.
Actors are seeking a fair share in territory-based revenue, clarity on character portrayal during auditions, and recognition of the skilled nature of performance captured for usage as against a wasted act considered useless.
The Hollywood strike stands as a pivotal moment for the entertainment industry, shedding light on the critical issues of pay disparity and the potential dangers posed by Gen AI.
While global stars have joined the fight for their fellow actors and writers, the battle for pay parity is yet to take centre stage fully. In the long term, this conversation—of shocking levels of pay disparity—will also turn on to big Hollywood stars who are also film producers. It would mean the likes of Pitt, Cruise, and Clooney might also be questioned over their compensations.
Having said that, as of now, with comedians and voice actors also joining picket lines outside Netflix headquarters, the strike has rallied talent across generations to take on studios and big money.
At this juncture, Hollywood must find a balance between innovation and safeguarding the livelihoods of its creative talent to ensure a sustainable and fair future for the industry.
Closer home in India, the Screenwriters Association continues to fight for payment, rejection, and continuation rights without any legal standing or government support. Actors have to support and promote themselves and make hay while the sun shines. It is a long way from a scenario where talent can afford to protest, let alone go on strike.
The strike in Hollywood will mean that Indian and South Korean originals, among others, will get greater push and visibility on OTT platforms. But the issues American entertainment talent is battling will eventually impact every market.
As of now, shooting on popular films like Deadpool 3, Mission Impossible Dead Reckoning 2, and Gladiator 2, and series like Cobra Kai and the final edition of Stranger Things have stopped.
Edited by Suman Singh