What did Ted Sarandos say about SAG-AFTRA?

During recent negotiations between SAG-AFTRA and the AMPTP, a proposed “levy” on every streaming subscriber by the actors’ union led to a breakdown in talks, Netflix’s co-CEO Ted Sarandos revealed.

Sarandos, along with fellow CEOs Bob Iger, David Zaslav, and Donna Langley, has been involved in these negotiations. They had previously engaged with the Writers Guild of America and were now interacting with SAG-AFTRA.

Addressing the situation at a Bloomberg conference, Sarandos mentioned that Netflix proposed a “success-based bonus” to SAG-AFTRA. This proposed deal echoed the agreement made with the writers but was expected to be costlier for the studios.

Sarandos commented on the rejected offer, stating, “The counter was this levy on every subscriber, which came after a proposed levy on all revenue. Essentially, the union would get a fraction of money for every subscriber.” Sarandos pointed out the differences in how negotiations unfolded with the Writers Guild, noting that a similar issue was ratified with an overwhelming 99% vote by the writers.

Highlighting the uniqueness of each guild, Sarandos added, “All these guilds have distinct requirements. We are in favor of a model that rewards success, as seen in our agreement with the writers. However, introducing a levy, especially without clarity on subscriber revenue, seemed excessive at this negotiation stage.”

The AMPTP, reflecting on the failed talks, stated the “distance between AMPTP and SAG-AFTRA remains vast.” They elaborated on the union’s proposal for casts to receive a portion of streaming platform revenue, labeling it as a financial strain costing over $800 million annually.

Responding to the developments, SAG-AFTRA accused studios of adopting an aggressive stance during the discussions and misrepresenting proposal costs to the media by a significant margin.

Sarandos concluded by emphasizing the commitment of all involved studios in these negotiations. He expressed the collective interest in reaching an agreement, provided the discussions continue productively. Reflecting on the recent talks, Sarandos said they were “neither consistent nor forward-moving.”