SAG-AFTRA Cuts Demand on Revenue-Sharing Plan

SAG-AFTRA headquarters
(Image credit: Chris Delmas/AFP via Getty Images)

SAG-AFTRA, the union representing television and movie actors, said it reduced its demand for streaming revenue-sharing, but that its new proposal was rejected by the studios.

The union also said the offer by some of Hollywood’s highest-paid actors to raise the ceiling on the amount of dues the pay to the union and letting lower-paid members get first crack at residual payments was generous, but not related to the current contract negotiations.

SAG-AFTRA’s demand for 2% of media companies’ streaming subscription revenues was one of the reasons negotiations broke down a week ago. 

In a note to members early Friday morning, the SAG-AFTRA negotiating committee acknowledged that the revenue-sharing proposal raised concerns at the studios.

“After several, seemingly constructive sessions, we pivoted from the plan we carefully and responsibly developed over the past year and dropped our ask to 1%. We did so, by restructuring our proposal, tailoring it to address their concerns,” the union said. “They responded by walking out and calling us greedy.”

The union added that the Alliance of Motion Picture and Television Producers (AMPTP), which represents the studios in the talks, has also refused to counter union proposals on other issues, including minimum wage rates.

Another issue that has surfaced was a proposal by high-profile actors including George Clooney that is worth an estimated $150 million.

The union warned that the studios might be using the proposal to divide union membership, but otherwise embraced the notion.

“We’re grateful that a few of our most successful members have engaged to offer ideas and support,” the union said. “Beyond donating extraordinary sums of money to the SAG-AFTRA Foundation in support of members during the strike, these influential individuals have sought to offer suggestions, in particular with regard to our streaming sharing proposal and the AMPTP's characterization that we are asking for too much. They have contemplated increasing the amount of money that the highest earners contribute to the union via raising their dues.” 

“This generous concept is worthy of consideration, but it is in no way related to and would have no bearing on this present contract or even as a subject of collective bargaining,” the union said. 

“Having said that, their creativity and earnest desire to help solve the impasse are very much appreciated. It is worth noting that the union has a very robust process to include the concerns of every member,” the union said. “The fact that the heads of the networks, streaming companies and studios are open to communicating with them directly is great. But, the executives should not for one second think that they can use the good will of member emissaries to distract us from our mission.”

Jon Lafayette

Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.