Greed Will Doom Us All
The WGA/SAG strike and what it means for all of us.
I have been thinking over the past few months about how to address this momentous movement that is happening right outside my front door. For those of you who know me more personally, I have lived in LA for 13 years and have been involved in the film industry for all 13 years. I have worked across the board as a production assistant, a grip, a gaffer, a director, a writer, a producer, and one time as an actor named Bruce in a small commercial. Throughout this all I have gotten to see the good and the bad this industry offers, the latter of which led me to education.
Throughout this post, I am going to try and break things up into a few parts. I will try to be as impartial as I can because I want to just provide insight into the fallout that could happen. I also want to share how this affects those not involved with the industry as I believe this is a snapshot of the power dynamics that are stretching workers across all industries.
Why Strike?
As of today’s writing the strike has been underway for a little over two months and SAG (Screen Actors Guild) just joined on July 13th. WGA (Writers Guild Of America) initially took the picket in search of better conditions for their writers, one of which would provide residuals back into the streaming model as well as limiting the use of AI (Artificial Intelligence) in the writing process.
For those that may not know how the industry operates, residuals used to be the lifeblood of the industry. Back in the 60’s the writers struck for additional payments when a network series would re-run or be in syndication. Now streaming platforms license a show or movie for a pre-determined amount of time offering only one payment to the owner of said show. The owner is not necessarily the creator so this can lead to the creators only getting paid the first time and never again, allowing the production company to profit multiple times. If you were to write or act on network tv in the past you would get a residual check every time the show made it to tv. This type of work allowed writers and actors to make a living even when studios were on hiatus.
Over the past decade, studios have shifted from network (Cable) tv and focused extensively on streaming platforms that have never had to conform to the residual model or sliding pay scales. In simpler terms, say Streaming Platform X buys a two-year license to the show “Friends”. The studio that produced this will get the licensing money and is not required to share any of the proceeds with the creatives. On the other hand, when “Friends” airs on television or in syndication on another cable channel, the writers and actors will earn a portion of the proceeds from every time their episode is on TV. This means that an actor or writer could write one season and make a small amount of money indefinitely, all of which was removed when streaming began.
Don’t Actors Make Millions of dollars?
Good question. Per available DATA the average SAG actor makes under $40,000 per year as an actor. This is on a sliding scale based on the production budget. The higher the budget, the higher the daily pay. With an average 1 bedroom apartment in the US costing $1700 (higher in industry cities) this doesn’t allow for a living wage. On the other hand, media CEO’s 2022 salary can be seen below.
I can already hear some people saying “Who Cares? They are just actors and writers, they can find something else to do.” Unfortunately, this new version of the strike has ground all production to a halt in industry cities. No more scripted television or movies, no more late-night talk shows, no more press junkets for film premieres. If it requires someone to write it or say it then it’s done.
This means all crew members of other unions are effectively out of work, this means production designers and grips and electricians. This means your favorite shows will not be airing this fall, and the movies that might have come out in a couple of years won’t be. New data says that this strike is costing California alone roughly 30 million dollars in revenue per day.1 Why would this group of billionaires reject a proposal that would have only cost them fractions of a percent of their total profit?2
Here are the costs per studio:
Disney – $75 mm
Netflix – $68 mm
Warner Bros. Discovery – $47 mm
Paramount Global – $45 mm
NBC Universal – $34 mm
Amazon – $32 mm
Sony – $25 mm
Apple – $17 mm
How did we get here?
The industry is always changing and adapting, which means the business model must be flexible. It is very difficult to be a full-time artist, of which I have been fortunate. With that being said, I have made close to nothing for my work as a director.
As a crew member on a film, this is how it usually goes. If you are not represented by a union you will agree to a rate for 12 hours (the standard day on set) and then perform your duties. Meetings and scouts will most likely not be paid, but necessary to perform your job on set. Once completed with work you will submit an invoice or timecard and be paid anywhere from 14-60 days after the work is completed. In some cases, I have gaffed a commercial or promotional video and it has aired to an audience before I have received a check. This is the reality of the situation and part of why this strike is for more than just the film industry.
Over the past decades, the gap between CEOs and workers has grown exponentially. This is across many industries throughout the world, with the average CEO making 390x the average worker’s salary.3 With data like this so readily accessible, it’s easy to see why the people creating the products might be upset.
“CEOs got smaller raises. It would still take the average worker 2 lifetimes to make their annual pay”
-PBS
This is not the first time and it certainly won’t be the last that people have to fight for their rights to fair compensation.
Where do we go from here?
As of writing this article, AMPTP (Alliance of Motion Picture and Television Producers) has decided to not discuss another option with the writers or actors with Bob Iger, CEO of Disney saying they “have to be realistic about the business environment and what this business can deliver”.4 For reference, AMPTP members made a collective $28.3 Billion in revenue last year, while WGA is asking for roughly 1.6% of that total.5
Another anonymous studio exec had this to say “The endgame is to allow things to drag on until union members start losing their apartments and losing their houses,”6 with another insider stating it was “a cruel but necessary evil.”
My father once told me that greed was one of the worst traits of a human being. The trait that pushes aside all compassion, in return for selfish needs. As a filmmaker in this industry, I am in total solidarity with the artists that have allowed me to create. The writers that have trusted me with their words, and the actors that have bared their souls for my films. Without each and every one of these artists, I would be watching movies in my imagination.
I am a naturally optimistic person and believe that things will only get better from here. During the dual strike of the 60s, we ended up with an independent film movement that spoke against greed. We had films that pushed the medium and allowed for new voices to grace the screen, I feel as if this is possible yet again.
Prologue
Take a walk down memory lane with me. You walk into Borders Books, or Sam Goody, both of which are now out of business, and buy your favorite cd or movie. You are able to take that home and watch it or listen to your heart’s content. Still today you can pull out that disc and put it on right now. That movie might have cost you $15, which is the same cost as Streaming Company X. X has thousands of films for the cost of your one film. How is that possible?
If you know an artist in your life, let them know you support what they are attempting to do. Most of us don’t do this for the money, but we most certainly do not do it for others to profit from us and provide nothing in return. If they have a youtube channel, subscribe. Do they share their work online for free? Follow and share. Most of us do this because we truly love the craft and want to share it with you. In return, we are just asking for a living wage from those that are profiting the most.