IATSE talks streaming residuals, wages and AI with AMPTP

The bargaining committee for the International Alliance of Theatrical Stage Employees continued negotiations with the Alliance of Motion Picture and Television Producers Monday, March 18, 2024, with talks focused on on issues connected to the International Cinematographers Guild Local 600.

ICG is the largest local that is part of IATSE in negotiations with AMPTP.

The ICG talks have been focused on the use of artificial intelligence, wages and pension and health fund issues.

ICG and IATSE are seeking wage increases, a common issue in union contracts but especially key as inflation hits record levels. It has also voiced concern over how Hollywood producers could use artificial intelligence to replicate the work of cinematographers and other crew members. 

One issue specific to IATSE is shoring up its pension and health fund. One proposal being suggested by IATSE is to create a new streaming residual program that would go toward these funds. Such a residual payment was discussed during the latest round of contract talks in 2021, but ultimately was not included in the final deal.

The IATSE pension fund has fallen short on what it needs to be fiscally sound due to the WGA and SAG-AFTRA strikes of 2023 that put many of its members out of work, thereby significantly reducing the amount of monies being received. 

The current AMPTP contract with key trade unions, including IATSE and Teamsters Local 399, expires July 31, 2024.

IATSE and the Teamsters are negotiating jointly. The other unions, including Laborers International Union of North America Local 724, Operative Plasterers’ & Cement Masons’ International Association Local 755, International Brotherhood of Electrical Workers Local 40 and United Association Plumbers 78, will have bargaining sessions in the coming days and weeks. 

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Trade unions such as these are likely eager to avoid a strike, which could potentially reduce its members’ income if productions are affected, and it’s still early in the process. After its historic breakdown of contract talks with SAG-AFTRA and WGA that lead to a dual strike that essentially shut down Hollywood in 2023, AMPTP could be at least somewhat of a disadvantage.

IATSE, meanwhile, has pledged that it will not extend its current deal beyond July 31, which could be a hint that the union is prepared to either drive a hard bargain. If it isn’t able to get substantially what it wants, this could be a sign it’s willing to explore striking. 

Both sides of the industry are facing significant shifts in how consumers receive entertainment. Traditional broadcast television and movie theater releases are seen, at least by some, as faltering, with streaming productions becoming hotter and more common.

However, many of the media and tech companies that control streaming platforms that produce original content are also facing higher costs and pressure to make streaming profitable faster. For years, many streamers have spent heavily on acquiring customers and content — a sum that likely totals into the billions of dollars. 

One bright spot for streaming, however, is increasing advertiser demand for inventory on both FAST and subscription streamers that offer ad-supported tiers. Some streamers have even found that selling ads can generate more revenue than subscription fees.

Because of these trends, it’s not surprising that the trades are targeting streaming residuals, though it remains to be seen if media companies are willing to share the wealth from these productions while also maintaining their own financial footing.