LOS ANGELES – Negotiators for Hollywood’s actors union have unanimously recommended a strike following the breakdown of talks with studios. This sets the stage for performers to join writers on picket lines, potentially disrupting numerous shows and movies as early as Thursday.
The SAG-AFTRA union, with 160,000 members, announced that its national board would vote on a strike order on Thursday morning. If approved, it would mark the first dual work stoppage in 63 years, forcing Hollywood studios to halt productions across the United States.
Both SAG-AFTRA and the Writers Guild of America (WGA) are demanding increased base pay and residuals in the streaming TV era, as well as assurances that their work will not be replaced by artificial intelligence (AI).
Fran Drescher, former star of “The Nanny” and president of SAG-AFTRA, criticized the studios’ response to the actors’ concerns as “insulting and disrespectful.” She stated that the companies had refused to engage meaningfully on certain topics and completely stonewalled them on others. Drescher emphasized that negotiations in good faith were necessary to reach a deal.
The Alliance of Motion Picture and Television Producers (AMPTP), negotiating on behalf of major companies such as Netflix and Walt Disney Co., expressed deep disappointment with SAG-AFTRA’s decision to walk away from negotiations. The AMPTP claimed to have offered “historic pay and residual increases” and a “groundbreaking AI proposal” aimed at protecting actors’ digital likenesses. Actors are concerned about the unauthorized use of their digital images without proper permission or compensation.
The ongoing strike by approximately 11,500 writers has already led to late-night television talk shows airing reruns, disrupted fall TV season production, and halted work on big-budget movies. If SAG-AFTRA joins the strike, it would result in the shutdown of the remaining U.S.-based studio productions, further pressuring media companies to find a resolution.
Not since 1960, when the Writers Guild of America and the Screen Actors Guild both went on strike over residuals from films sold to TV networks, has Hollywood faced two simultaneous strikes. Today, the unions are primarily focused on base pay and residuals from streaming services.
Actor Matt Damon highlighted the importance of residual payments for qualifying for health insurance, stating that money needs to be allocated in a way that takes care of those on the margins. However, many streaming services are yet to turn a profit, despite substantial investments in programming to attract customers. Media companies, such as Disney, NBCUniversal, and Paramount Global, have reported significant losses in their streaming divisions.
The WGA strike has already had economic repercussions, affecting various businesses that rely on Hollywood production, including caterers and prop suppliers. If actors also strike, the economic impact is expected to broaden. Broadcast networks have adjusted their fall schedules to include more reality shows, which remain unaffected by the current labor tensions. Independent productions not covered by union contracts can also continue unaffected.