Hollywood studios and actors have agreed to mediation as the deadline for a new contract looms. The current contract expires on July 19. If no agreement is reached, the Screen Actors Guild (SAG) could authorize a strike.
The two sides have been deadlocked in negotiations for months. The main sticking points are how much actors should be paid for work on streaming platforms and whether made-for-internet productions should be subject to the union’s contract.
The mediator, a former federal judge, will be tasked with helping the two sides reach an agreement. If mediation is successful, it would avert a strike that could have a major impact on the Hollywood industry.
The last time SAG went on strike was in 2008. It lasted 100 days and shut down production on many television shows and movies. The strike cost the industry an estimated $2 billion.
The current negotiations are taking place against the backdrop of a rapidly changing entertainment landscape. Streaming platforms like Netflix and Amazon are becoming increasingly popular. They are challenging the traditional way that actors are paid.
The studios argue that they need to be able to pay actors less for work on streaming platforms. They claim that the revenue from those platforms is lower than the revenue from traditional television. SAG, on the other hand, argues that actors should be paid the same for all types of work, regardless of the platform.
It remains to be seen whether mediation will be successful in resolving these differences. However, both sides have said that they are committed to reaching an agreement. They are hopeful that mediation will help them do so.
