SAG-AFTRA, the influential actors' union, has voted to ratify a new three-year contract with major Hollywood studios and streaming companies, effectively putting an end to six months of labor unrest that had gripped the entertainment industry.

The deal, which had a value exceeding $1 billion, was overwhelmingly approved by members with a 78.33% margin, accompanied by a 38.15% voter turnout, as per Rolling Stone.

Hollywood Contract Ratified Amid AI Concerns

SAG-AFTRA And Studios Inch Closer To Deal After AI Breakthrough
(Photo : Mario Tama/Getty Images)
LOS ANGELES, CALIFORNIA - NOVEMBER 08: Strike captain SAG-AFTRA member Cari Ciotti (2nd R) gestures as SAG-AFTRA members and supporters picket outside Paramount Studios on day 118 of their strike against the Hollywood studios on November 8, 2023 in Los Angeles, California. A tentative labor agreement has been reached between the actors union and the Alliance of Motion Picture and Television Producers (AMPTP) with the strike set to end after midnight.

The previous remarkable advancement indicates that the novel accord shall be in force starting from June 9, 2023, and shall remain in effect until June 30, 2026.

Despite the majority approval, the contract has faced criticism from some union members, primarily related to its provisions on artificial intelligence (AI) protections. While the contract does include safeguards against the use of AI tools to create digital replicas of performers without their consent or compensation, concerns persist about the potential for the emergence of "synthetic fakes" on screens.

The contract encompasses a wide range of issues beyond AI, addressing key concerns raised by union members. It includes improved healthcare funding, enhanced on-set services, concessions regarding self-taped auditions, and a new requirement for intimacy coordinators for scenes involving nudity or sex, among other gains.

One contentious aspect of the contract is its stance on AI. While it prevents studios from creating digital replicas of actors without consent, it does not prohibit the use of AI to generate entirely fabricated characters by combining features from real actors.

Some critics, like actor Matthew Modine, argue that this could lead to job reductions, particularly for background and stunt performers.

Another point of contention is the contract's provision allowing studios to require body scans as a condition for employment and permitting the use of past performances to train AI tools.

The ratification of this agreement occurs following a sequence of strikes that halted operations in Hollywood for a number of months, leading to considerable financial losses of approximately $10 billion across the industry, according to The New York Times.

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Big Win For SAG-AFTRA

However, it also secured significant gains for union members, including pay increases, streaming-based bonuses, and crucial AI protections.

SAG-AFTRA, which represents around 160,000 members, hailed the contract as an "enormous victory," emphasizing the comprehensive scope of the agreement and the benefits it brings to its members.

The Alliance of Motion Picture and Television Producers, representing major entertainment companies, also congratulated the union, stating that the vote paves the way for the industry and the jobs it supports to return in full force.

The approval of the arrangement indicates the end of a demanding period. Industry insiders anticipate that this deal will bring about immediate wage hikes for actors, while also paving the way for a $40 million fund dedicated to streaming residuals.

Additionally, the agreement aims to implement safeguards against the misuse of artificial intelligence, addressing a growing concern in the industry.

The strikes earlier this year, which were the longest-ever work stoppage for US film and television actors, occurred alongside a writers' strike and collectively secured protections against perceived existential threats to careers in the industry. The combined efforts of both unions have reshaped the landscape for workers in the entertainment world, The Guardian reported.

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