Streaming services are to pay an approximate amount of $40 million in the form of bonuses annually. Apparently, these are the terms under a tentative agreement of three-years.
This labor agreement in question is between the actor’s union of SAG-AFTRA. Multiple major studios in Hollywood are also a part of this deal. This deal has a value of over $1 billion. This decision was also supported by a whopping 86% of the national board of SAG-AFTRA. However, there is still a catch. The union members still need to vote on it.
The contract in question covers a major part of the streaming industry. It includes big names like Warner Bros Discovery, Netflix, Disney, and more. More members of the Alliance of Motion Picture and Television Producers are also a part of this deal. The voting process will ideally conclude in earlier parts of December.
President of the SAG-AFTRA, Fran Drescher, noted that the union had achieved part of its goal. He also said that they would ensure that the streaming services gave actors a greater part of the revenue.
The proposals that came early on included a fee that each subscriber would pay. These proposals were rejected. Additionally, the agreement introduces bonus payments for the actors. It’s safe to say that this system would create a revenue stream that is a new one.
Under the terms, a whopping 75% of this $40 million bonus pool will benefit actors in some of the most popular shows on the platforms. The remaining 25% will go to a fund distributed among actors in streaming shows of other platforms.
This agreement, in addition to the bonus payments and raises minimum salaries for actors. Moreover, it also establishes guidelines for AI use in filmmaking.