As Actors’ Strike Holds Up Hollywood, Adland Productions Go Ahead

In Hollywood, it seems that the old entertainers’ adage ‘the show must go on’ has fallen out of favour. A strike by the Screen Actors Guild – American Federation of Television and Radio Artists (SAG-AFTRA), has seen TV and film production in the USA screech to a halt, as well as promotional activity like interviews and red carpet appearances to publicise movies. They’re taking on the Alliance of Motion Picture and Television Producers (AMPTP), the body that negotiates terms on behalf of 350 producers, including major movie studios, TV networks and streaming services.

But what does it all mean for commercial production with SAG-AFTRA members? After all, the union has over 160,000 members, including not just film and TV actors but journalists, radio broadcasters, recording artists, singers, voice actors, influencers, models and more.

According to advertising industry bodies the 4A’s and the Association of Independent Commercial Producers (AICP), commercial contracts will not be affected and brands can continue to work with SAG-AFTRA members.

Marla Kaplowitz, CEO and president of the 4A’s, said that actors working in advertising are covered by completely different contracts. “It’s important to note that the SAG-AFTRA TV/theatrical contracts are separate from the SAG-AFTRA Commercials Contract and will have no impact on union actors who work in commercials or do promotional work on behalf of brands.”

“That’s good news for the advertising and marketing industry regarding content creation,” she added.

Digging deeper into the specifics, the AICP’s Matt Miller explained that SAG-AFTRA’s dispute is specifically with the AMPTP and not the organisation that mediates advertising contracts. “Collective bargaining agreements are a pact between the union and the management group. The contract in dispute is between SAG-AFTRA (union) and the AMPTP. This has nothing to do with the commercials contracts, which contract between SAG-AFTRA and the Joint Policy Committee (JPC) run by the advertisers and advertising agencies. All SAG-AFTRA actors are free to work under this contract as there is no relationship between the AMPTP and the JPC contract with the union,” he said.

However, that doesn’t mean that brands, agencies and commercial producers will find themselves completely unscathed. Depending on how long the strikes go on for, brands may find themselves having to re-jig their media strategies. “The challenge will be the distribution of ads in commercial programming given the halt of TV and theatrical production due to the strikes,” said Marla at the 4A’s.

However, with so many platforms and spaces for audiences, Marla is confidence that brands and advertisers will adapt. “It’s still early as members assess the ramifications of the strikes. There’s so much fragmentation across media today along with many other outlets for content and audiences. The duration of the strike will ultimately impact consumer behavior if people need to seek out alternative sources of content. But there’s also a tremendous amount of streaming content -including advertiser supported. Brands and agencies will seek ways to follow the audiences and identify new opportunities and increase spend in areas that are more stable.”

Some areas are less clear cut – advertisers looking to create longer form branded entertainment such as movies, documentaries or series may need to look more closely at contracts and context. For example, brand-led shows created for streaming services or TV networks may be a different prospect to content created for social media or to live on a brand’s own website. “Regarding longer form content, it depends on the intent of how it will be used and distribution as well as if it’s an extended ad or a short film,” Marla said.

The strike, which kicked off on Thursday, June 13, was initiated following lengthy negotiations between SAG-AFTRA and the AMPTP. SAG-AFTRA’s argument is that the way actors are recompensed and the business model around residual payments has not kept pace with changes in the industry, particularly the rise of streaming platforms. Artificial intelligence also looms large – in a conversation that could be ripped straight from the latest series of Black Mirror, the union is concerned about producers scanning actors and using their likeness without consent or compensation. None other than Tom Cruise has stepped in to voice concerns about the lack of checks and balances around the us of AI with regards to actors and performers.

On Monday SAG-AFTRA released a statement saying that there was a battle for the future of the acting profession, while the AMPTP rebutted, claiming that its counter offers during negotiations amounted to “$1 billion in wage increases, pension and health contributions and residual increases’, as well as ‘first-of-their-kind protections over its three-year term, including expressly with respect to AI”.

SAG-AFTRA’s strike is just the latest to disrupt the entertainment industry – on May 2nd the Writers Guild of America went on strike with similar complaints around residuals and payments in the context of streaming, as well as their own concerns about the use of AI in writing. It’s the first time in 60 years that both the actors and writers have been on strike at the same time.