Hollywood's Path to Recovery: Understanding the New SAG-AFTRA Agreement

Hollywood Faces Challenges and New Beginnings

The summer of 2023 was a tumultuous time for Hollywood, marked by strikes from both the writers' and actors' unions against major studios. This led to a halt in production, resulting in the cancellation or delay of numerous films and television shows. Fast forward three years, and the industry is on a slow but steady path to recovery. While it hasn't fully bounced back to pre-pandemic levels, there are signs of improvement. The recent agreement between the actors' union and the Alliance of Motion Picture and Television Producers has eased the concerns of another strike. Here’s what you need to know about this new tentative agreement.

Details of the New SAG-AFTRA Agreement

What is the new SAG-AFTRA and studio deal?

On May 2, SAG-AFTRA took to social media to announce that a tentative agreement had been reached. This new contract covers various areas, including motion pictures, scripted primetime television, streaming services, and new media. The previous contract was established in 2023 for SAG-AFTRA TV/Theatrical Contracts. While the agreement awaits approval from the SAG-AFTRA National Board, further details will be disclosed by the union soon. The national board is set to convene shortly, and members will need to vote on ratification. The existing contract is due to expire on June 30, 2026.

Key Terms of the New Agreement

Terms of the new SAG-AFTRA and studio deal

Negotiations for the new contract began in February 2026 between the studios, represented by the Alliance of Motion Picture and Television Producers, and SAG-AFTRA. A major concern for the actors' union was the impact of generative AI. Although SAG-AFTRA had previously set some guidelines for AI-related consent and compensation in 2023, the landscape has changed significantly. As reported by The Hollywood Reporter, SAG-AFTRA chief negotiator Duncan Crabtree-Ireland stated that any performances generated by AI should receive compensation comparable to that of actors' appearances at the Consumer Electronics Show prior to negotiations.

Additionally, the issue of compensation for SAG-AFTRA members was highlighted. Sean Astin, the SAG-AFTRA president known for his role in The Lord of the Rings, raised concerns about decreasing wages for actors. He pointed out that many performers were finding it difficult to qualify for health care. With inflation and living costs on the rise, there is an urgent need for salary increases. The union is also pushing for significant contributions to pension funds.

WGA's New Agreement with Studios

More about the WGA and studio deal

Earlier this year, the Writers Guild of America, which also went on strike in 2023, secured a new four-year agreement with the Alliance of Motion Picture and Television Producers. Despite a low voter turnout, the contract was extended to four years, although a five-year deal was initially sought. Both parties experienced a mix of gains and losses during the negotiations.