Hollywood Strike: $1 Billion Studio Offer Revealed as Misleading

As the Hollywood strike continues, tensions escalate as studio spin attempts to sway public opinion. The AMPTP claims that their latest offer to the striking actors (SAG-AFTRA) is generous, worth a headline-friendly $1 billion in wage and residuals increases over three years. However, a closer look reveals a different story.

Behind the impressive-sounding figure, the deal boils down to just $333 million annually for all studios combined. Further calculations show that the actual amount per studio is a mere $30 million per year, that’s less than many entertainment C.E.O.s earn out annually. This seemingly lackluster offer raises questions about the AMPTP’s true intentions, with some speculating it’s an attempt to show Wall Street their resolve and not bow to the striking actors.

Moreover, the purported billion-dollar estimate is based on faulty premises, according to insiders. The AMPTP’s offer is a 5 percent increase in the first year, followed by 4 percent and 3.5 percent in the subsequent two years. By this calculation, the true value of the offer amounts to $869 million, significantly less than the claimed $1 billion.


Compounding the complexity of the negotiations, the AMPTP’s insistence that scale wage increases will automatically affect overscale compensation has been challenged. The two are distinct markets, and overscale compensation is usually negotiated individually by actors’ agents, not the union.

SAG-AFTRA, on the other hand, estimates the value of the AMPTP offer to be even lower, around $772 million, or roughly $23 million per company annually. The union seeks an 11 percent increase in the first year to offset years of inflation.

Amidst financial disputes, both parties also face concerns over job security due to technological advances, particularly AI-generated content. With the WGA, IATSE, and Teamsters keeping a close eye on the outcome of the Hollywood strike.

Saad Hussain

Saad Hussain is an ardent writer whose passion lies in exploring the vast realm of streaming. With an insatiable curiosity for all things related to content, business, technology and the ever-evolving world of entertainment, Saad's expertise lies in dissecting the latest trends and captivating his readers with engaging content that fuels their imaginations. Saad's love for the world of entertainment extends beyond his writing pursuits. He actively seeks opportunities to engage in lively discussions about the newest developments around the streaming platforms.

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