Hollywood 'Shutdown'... Why Have Actors and Writers Decided to Go on a Joint Strike?

On July 13, union members announce a strike resolution at a press conference held at the headquarters of the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) located in Los Angeles, California, USA. Los Angeles=Reuters Yonhap

The British premiere of the Hollywood movie 'Oppenheimer' took place on July 12 (local time) 'without actors.' Star actors such as Matt Damon, Robert Downey Jr., and Emily Blunt were absent. Director Christopher Nolan, who took the stage alone, said, "The actors have left to picket."

This is not limited to them. Prestigious actors like Meryl Streep, Ben Stiller, Jennifer Lawrence, and Jessica Chastain are taking to the streets with picket signs. Following the Writers Guild of America (WGA), the Screen Actors Guild (SAG-AFTRA) will go on strike from the 13th, forecasting a 'shutdown' in Hollywood.

Actors VS. OTT... Conflict Over Changes in the 'Streaming' and 'AI' Era

According to the New York Times and Reuters, the Screen Actors Guild took immediate action after the negotiations with the Alliance of Motion Picture and Television Producers (AMPTP) broke down. They demanded that changes in the revenue structure due to the activation of streaming services be reflected in their treatment.

The core issue is the revision of 'residuals', a kind of royalty paid to writers and actors each time a work is consumed. Subscribers to online video services (OTT) such as Netflix and Disney+ can watch unlimited content by only paying a fixed monthly subscription fee. OTT companies are making a profit from subscription fees worldwide, but no additional income is given to writers and actors. Writers and actors have defined this as an "exploitative structure."

The issue of protecting actors' rights in the era of artificial intelligence (AI) was also contentious. The Screen Actors Guild demanded producers take measures to prevent unauthorized use of human actors' faces and voices by AI technology, but received no substantial solutions. The Guild stated, "We need to stop production companies from reusing actors' faces and voices indefinitely."

Duncan Crabtree-Ireland, the chief negotiator of the Guild, criticized in a press conference that "AMPTP did not present any alternatives." In contrast, AMPTP countered, "the unions have rejected the negotiation proposal."

Actors (from left) Matt Damon, Emily Blunt, Cillian Murphy, and Florence Pugh, who appeared in the movie 'Oppenheimer', are posing at the red carpet scene of the premiere held in London, UK, on July 12. They left the stage greeting scene just before the Screen Actors Guild's strike resolution was imminent. London=EPA Yonhap

63 Years Since the Last Joint Strike... Hollywood is to 'Shut Down'

This is the first joint strike in 63 years by Hollywood's two major guilds. Both guilds, which fought together over the residuals of TV movies in 1960, have reunited to jointly respond to the drastic changes in the ecosystem with the emergence of OTT companies. About 10,000 writers have been on strike since May, and about 60,000 out of 160,000 members of the Actors Guild will stop working.

Hollywood is likely to be paralyzed due to the manpower shortage. The shooting of each broadcasting company's flagship talk shows has been halted due to the writers' strike, and the production schedule of OTT original content, including Netflix's 'Stranger Things' series, has been indefinitely postponed. The actors participating in the strike are leaving the shooting set immediately and decided not to attend promotional events for works that have already been produced. The Milken Institute in the U.S. predicted that the loss from this joint strike would amount to around 5 trillion won.

Members of both guilds are planning to protest in front of Netflix's California headquarters on the 14th, then move to Paramount, Warner Bros, and Disney headquarters, according to BBC.

Members of the Writers Guild of America (WGA) are passing in front of Netflix's drama promotional material in Los Angeles, California, on July 12, holding a picket that says "the Screen Actors Guild also supports the WGA" ahead of the announcement of the Screen Actors Guild's strike resolution. Los Angeles=AFP Yonhap