Netflix boss Ted Sarandos said that the talks between SAG-AFTRA and the Alliance of Motion Picture and Television Producers (AMPTP) fell apart on Wednesday because of an additional “levy” that the actors’ union was proposing.
Sarandos, who has been one of four CEOs who sat in on negotiations with the WGA and SAG-AFTRA, said at a Bloomberg conference on Thursday that they had offered SAG-AFTRA a success-based bonus, which he said was similar to the writer deal that was accepted. However, the union countered with a levy on every subscriber.
“Prior to that was a levy on all revenue, where basically the union will take a certain amount of money for every subscriber to a service,” Sarandos said. “That issue that we got resolved with the writers was not only accepted in the deal but ratified by a 99% vote of the Writers Guild, so I know that all these guilds are not created equal and they all have different needs, but like I said, that is one that worked that rewarded success, which we agreed with.”
The AMPTP announced on Wednesday that they have halted talks with SAG-AFTRA, given that the gap between the two parties is “too great.” However, SAG-AFTRA shot back at the AMPTP, telling members that the studios walked away from talks with the union and accused them of using bullying tactics and misrepresenting the cost of the union’s proposal to the press.
Sarandos added that he and the other CEOs are committed to making a deal as long as the talks are progressing, but he said that the talks Wednesday night were “not steady” and “not productive.”
The outcome of the negotiations between SAG-AFTRA and the AMPTP will have a significant impact on the entertainment industry, as it will determine the new contract for actors who appear in film and television shows produced by the major studios.
Analysis:
The fact that the talks between SAG-AFTRA and the AMPTP have broken down is a concerning sign for the entertainment industry. A strike by SAG-AFTRA would have a major impact on film and television production, as it would mean that actors would be unable to work on any projects produced by the major studios.
It is unclear what will happen next in the negotiations. However, it is clear that both sides will need to be willing to compromise if they want to reach a deal.