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A Harder Line Against Streamers

What you need to know about SAG-AFTRA and IATSE’s call for equitable pay

By Diep Tran

IN AUGUST, TOM HANKS TOLD SAG-AFTRA MEMBERS, “THE

future of SAG-AFTRA is streaming.” This was part of his endorsement of Fran Drescher, who at the time was running for president of the union. Drescher, whose campaign platform included addressing streaming issues, won the election. The rapid growth of services like Netflix, Hulu, Amazon Prime Video, and more has become an issue that has not only upended Hollywood’s distribution model, but has divided SAG-AFTRA and may cause the International Alliance of Theatrical Stage Employees (IATSE) to go on strike.

When it comes to film and television contracts, SAG-AFTRA negotiates with the Alliance of Motion Picture and Television Producers (AMPTP). But in 2019, the union negotiated a separate agreement with Netflix that applied to any scripted project produced and distributed by the streaming giant. It established a residual structure for works that are licensed by Netflix, as well as those produced by the platform.

Then, in 2020, SAG-AFTRA brokered a TV and theatrical contract that covered film, television, and new media (which includes streaming). The union negotiated 2.5–3% yearly wage increases over the three years of the contract.

SAG-AFTRA prides itself on having increased the amount of residuals paid out to members whose works appear on streaming platforms. Currently, residuals are calculated based on the amount that a performer was originally paid and how many subscribers the streaming platform has. It’s estimated that performers will see a gain of over $750 million in streaming residuals over eight years.

Unfortunately, in exchange, SAG-AFTRA agreed to a new residual structure for broadcast television, costing actors over $170 million in network residuals, according to the Hollywood Reporter. This move was heavily criticized by members of SAG-AFTRA.

In an interview with the Wrap, Drescher said that one of her priorities as the new guild president will be further improving wages and residuals from streamers. (She will serve for two years.)

“It’s frustrating to not know how well a show does on a streaming platform and that our members are not benefiting equitably,” said Drescher. “For this reason, I think the structure for the contract should be reconsidered. A ratio of monies paid to a member must remain in direct correlation with the deal made with the studio. If the studio makes money, the member should, too, and the health plan needs to be paid into. There must be a clean relationship where everyone makes money as well as gets benefits, as long as the project does.”