SAG-AFTRA Considers Studio Tax on AI Digital Performers
With the rapid advancement of artificial intelligence in entertainment, SAG-AFTRA is weighing significant changes regarding the use of digital performers. As part of upcoming negotiations scheduled for February 9, 2024, the union is proposing a potential “Tilly tax.” This tax would require studios to pay royalties into a union fund whenever they utilize synthetic actors instead of live performers.
SAG-AFTRA’s Ongoing Negotiations
The topic of AI has emerged as a central concern following the actors’ strike in 2023. Although the union secured some protections relating to AI, the fear surrounding these digital entities remains high. Synthetic actors like Tilly Norwood have exemplified the threat to job security for traditional performers, prompting discussions about mandatory payments for their use.
Brendan Bradley, a member of the SAG-AFTRA AI task force, described the proposed tax as “the best bad idea we’ve got in 2026.” This reflects the pressing need to establish compensation mechanisms for actors affected by AI technology.
Upcoming Contract Talks
The SAG-AFTRA leadership, including Chief Negotiator Duncan Crabtree-Ireland and President Sean Astin, has opted for early negotiations with the Alliance of Motion Picture and Television Producers (AMPTP). These discussions come months ahead of the contract expiration set for June 30. There are positive indications, with hopes of concluding a deal by March.
- New lead negotiator from AMPTP: Greg Hessinger
- Previous lead negotiator: Carol Lombardini
- Potential deal completion: March 2024
Broader Issues Beyond AI
AI is not the only pressing issue for union members. The transition to streaming platforms has also been a significant focus. Many actors express frustration over inadequate residuals from streaming services. During the last strike, SAG-AFTRA initially sought 1% of streaming revenues, which translates to approximately $500 million annually.
However, the union ultimately secured a “success bonus” projected at $40 million per year, which has not met expectations. Kate Bond, a union board member, emphasized the need for a system that ensures fair compensation from streaming shows, similar to traditional residuals.
Future Challenges
Some actors feel that the shift towards bonuses instead of equitable residual payments has shifted the focus away from sustainable income models. This dissatisfaction comes as streaming services create longer gaps between seasons, impacting job security. Additionally, the complications of self-taped auditions have also drawn criticism, as actors adapt to new industry norms.
The looming threat of AI continues to dominate conversations within SAG-AFTRA. While the union recently achieved royalties for synthetic performances in commercials and music, the struggle for fair compensation remains ongoing. Actors like Erik Passoja stress the importance of protecting their livelihood from digital replacements, suggesting that any potential “Tilly tax” should support pension and health funds.
As SAG-AFTRA prepares to negotiate, the outcome will shape the future landscape of the entertainment industry amid evolving technologies.
