SAG-AFTRA Strike: Pay Disparity, Artificial Intelligence and More Demands Explained

This is the first time in 60 years the two unions have protested at the same time -- bringing almost every television and film set to a screeching halt.

Below is a simplified breakdown of the issues. It is by no means an exhaustive list. SAG-AFTRA released a detailed list of their demands, while AMPTP also has their own summary.

SAG-AFTRA has 160,000 members, most of whom are not wealthy.

The union's president Fran Drescher recently explained that the vast majority of actors "are just working people just trying to make a living just trying to pay their rent, just trying to put food on the table and get their kids off to school."

"Everything that you watch, that you enjoy, that you're entertained by are scenes filled with people that are not making the big money," she said.

The actor's union joined the 11,000 members of the Writers Guild of America in the Hollywood strike.

The US Bureau of Labor Statistics reported the average pay for California actors in 2022 was $27.73 per hour -- before agents, managers, and attorneys each take their percentages.

The Bureau of Labor also notes that actors are not full-time let alone year-round employees but often day-workers.

The disparity between studio heads and the average working actor has come to the forefront of the conversation.

Disney CEO Bob Iger recently inked a new deal where his annual base salary of $1 million can be augmented by a $5 million bonus each year in addition to the stock awards from Disney totaling $25 million. Meaning he has the potential to make $31 million a year.

While in 2022, Ted Sarandos banked $50 million and Greg Peters earned $28 million -- they're the co-CEOs of Netflix.

Only 12.7% of SAG-AFTRA members are eligible for the union's health plan as the minimum dollar amount per year an actor has to make off their work to qualify is $26,470.

Nearly 90% of working actors make less than the absolute minimum for the union's health insurance plan.

Another disruptor to the acting economy is the advent of streaming, which has impacted a previously reliable source of income.

Residual payments were once steady forms of income for many actors, who were paid each time a film or television episode was replayed.

Actors now say that calculations for how much they should be paid when a show is streamed is not at all clear -- which has resulted in vastly lower pay than previously.

SAG-AFTRA is asking for actors to be paid 2% of the revenue of shows on streaming platforms.

The union would utilize Content Valuation, a tool by Parrot Analytics, to measure revenue. AMPTP (Alliance of Motion Picture and Television Producers) could not come to an agreement on this.

AMPTP offered the actors union 5%, 4% and 3.5% wage increases over three years of the contract.

SAG-AFTRA is demanding 11%, 4% and 4%, respectively.

Neither side is seeking to ban AI and the digital use of performers' likeness and voice.

However, the studios and the union cannot agree on specific details regarding compensation and consent.

Ultimately the actors union wants to be involved in individual uses of AI, a sticking point for AMPTP.

It has become industry standard to have performers submit self-taped auditions in the aftermath of the pandemic.

SAG-AFTRA is seeking to limit its use going forward -- the union wants actors to produce their own auditions with no more than five pages of material. The Studios are offering an eight page limit.

There are also disagreements on provisions detailing special technical features such as lighting and other equipment as well as the requirements for turnaround deadlines.

TV and film producers pay into health and pension plans, calculated on a performers earnings, up to certain thresholds: $15,000 for a half-hour of television; $24,500 for an hour of TV.

The union wants those ceilings to be raised to $45,000 and $75,000 to address inflation over the past 40 years.

The studios have counter offered $20,000 and $30,000, respectively.

The strike could inflict upwards of $4 billion in economic damage once it's done, said chief global strategist for the Milken Institute, Kevin Klowden, according to CNN.

Klowden noted that the Writers Guild and the actors union striking simultaneously could have much further reaching impact than just the US.

"London and the UK, Australia, New Zealand and other places, which either have studios or even do post-production, will face a real impact."

For more see SAG-AFTRA's detailed breakdown of their demands; AMPTP has also their own summary.