SAG AFTRA Deal: Why Tentative Agreement Between Actors' Union, Studios Is Promising - EXPLAINED

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summer of 2023 was a dark time in Hollywood as first the writers' union and later the actors' union went on strike against the studios. Work ground to a halt and several shows and films were either cancelled or shelved. Three years later, Hollywood is slowing getting back on its feet. While the business hasn't reached the pre-pandemic levels, Hollywood is prospering again slowly but surely. With the new deal between the actors' union SAG-AFTRA and the Alliance of Motion Picture and Television Producers getting into place, the possibility of a strike has been removed. Here's all you need to know about the new tentative agreement.

What is the new SAG-AFTRA and studio deal?

On May 2, SAG-AFTRA took to social media to announce to their members and the rest of the world that a tentative agreement had been secured. This is a successor contract that covers motion pictures, scripted primetime dramatic television, streaming content and new media. The last deal had been made in 2023 for the SAG-AFTRA TV/Theatrical Contracts. While the deal has to still be approved by the SAG-AFTRA National Board, the union would share more about the overall deal later. The national board will be meeting in a couple of days and has to be evaluated by members in a ratification vote. The previous contract ends on June 30, 2026.

Terms of the new SAG-AFTRA and studio deal

The studios, represented by the Alliance of Motion Picture and Television Producers, and SAG-AFTRA have been negotiating on the new contract since February 2026. One of the biggest issues for the actors' union was generative AI (artificial intelligence). While SAG-AFTRA had laid down some terms for AI-related consent and compensation in 2023, the landscape has become much wider since then. According to a report in The Hollywood Reporter, SAG-AFTRA chief negotiator Duncan Crabtree-Ireland had stated any performances generated by AI should cost as much any actors' appearances at the Consumer Electronics Show prior to negotiations.

The issue of compensation for the SAG-AFTRA members was also raised. Earlier, SAG-AFTRA president Sean Astin, who starred in The Lord of the Rings films, had been concerned about actor wages, which had been declining. According to him, performers were not able to qualify for health care. With inflation and cost-of-living rising, their salaries also needed to be raised. The union had also been looking for significant pension fund contributions

More about the WGA and studio deal

Earlier this year, the Writers Guild of America, which had also gone on strike in 2023, made a new four-year deal with the Alliance of Motion Picture and Television Producers. While voter turnout was low, the contract was extended to four years. They had hoped for a five-year deal. There were gains and losses on both sides.