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Hollywood negotiators have gone on strike under mounting pressure to reach a deal. The strike by actors, which has lasted for several months


Hollywood negotiators have gone on strike under mounting pressure to reach a deal. The strike by actors, which has lasted for several months, has taken a toll on Hollywood, leaving thousands of people unemployed, halting production, and affecting various industries, costing California's economy over $5 billion.

Hollywood studios and streamers returned to the negotiating table with SAG-AFTRA, the union representing over 150,000 actors, for the third round of meetings this week.

These negotiations began after public negotiations between SAG-AFTRA and the Alliance of Motion Picture and Television Producers (AMPTP), representing Hollywood studios and streamers (including NBC Comcast's parent company), collapsed two weeks ago.

Three sources familiar with the negotiations told NBC News that progress was made on numerous issues during Thursday's negotiations, with one source saying that "it looks like the end is near."

A second source said, "There is tremendous pressure on both sides to make a deal."

However, two out of these three sources said that Friday's meeting was "difficult," and one said, "It's a volatile situation, with both sides far apart on some key issues."

NBC News reached out to SAG-AFTRA and AMPTP for comment.

Negotiations did not lead to an agreement on Friday evening, and in a statement to members on Friday night, the union's television and theatrical negotiating committee said, "We completed a full and productive day working within the company, and we will continue to work through the weekend."

The committee added, "We thank you for the incredible solidarity and support you have shown on picket lines and across the country throughout the week."

Earlier on Friday, SAG-AFTRA posted on X: "Today we presented detailed reports to our national executive directors, and while negotiations for the day have ended, our committee just wrapped up internal work this evening."

Among the major stumbling blocks are residuals in the streaming era, AI protection, and subscription fees.

All sources confirmed Variety's report that AMPTP is offering a 7% increase in minimum rates. When it comes to AI, the union seeks oversight and veto rights over how AI is used by their performers, something AMPTP is not willing to agree to, sources said.

Netflix CEO Ted Sarandos discussed the ongoing negotiations earlier this month and said that the main issue holding both sides back from a deal is subscription fees.

SAG-AFTRA President Fran Drescher told NBC News at the time that the union proposed streaming services pay 57 cents per subscriber over a three-year contract. Sarandos publicly criticized this offer, stating it would cost AMPTP over $800 million a year, a figure Drescher said is exaggerated. All sources said Friday's negotiations were primarily focused on this issue.

The impact of the Hollywood strike was felt across various industries, including transportation, dry cleaning, and the restaurant business.

According to an August employment report in the United States, the strike, which lasted over 100 days, resulted in the loss of over 17,000 jobs, making it the longest in Hollywood's history. The Writers Guild of America (WGA), representing over 11,000 writers, reached an agreement last month after an almost 150-day strike.

While Hollywood virtually came to a standstill, many productions, including "Mission: Impossible - Dead Reckoning, Part Two," were pushed to 2025 due to the strike.

Uncertainty looms over the industry as the holiday season rapidly approaches.

"Many actors have depleted their savings, maxed out their credit cards. It's terrible. We need a deal, and we need it now," one of the sources said.