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For the first time since 1960, both the writers and actors are on strike at the same time. Hollywood is on hold.

The entertainment industry is slowly grinding to a halt. Actors officially went on strike today, joining the writers, as they could not reach a new labor agreement with the studios.

A prolonged strike by both writers and actors could lead to a lack of newly scripted TV shows in the early fall. That would lead to a thinning of Hollywood’s movies and TV shows.

Streaming services such as Netflix and Max tend to produce programming far out in advance, as do movie studios, so they will not feel the effects of the strike until late in 2024.

The reasons for the strike are related to compensation, royalties, and the use of artificial intelligence during the creative process.

In a press conference on Thursday, president of the Screen Actors Guild — American Federation of Television and Radio Artists Fran Drescher said she couldn’t believe how far apart the two sides were from one another on these issues.

“The entire business model has been changed by streaming, digital, artificial intelligence,” Drescher said. “If we don’t stand tall right now, we are all going to be in trouble. We are all going to be in jeopardy of being replaced by machines and big business.”

Members of SAG are claiming that the current payments are not keeping up with the revenue media companies are generating from scripted content around the globe.

SAG-AFTRA chief negotiator Duncan Crabtree-Ireland said the union sought a 2% cut of streaming subscription revenues for performers, which was a nonstarter for the Alliance of Motion Picture and Television Producers.

There is also a concern that artificial intelligence could be used to replace writers. Actors are concerned that AI could be used to copy their image and be used without their consent or compensation.

To hear more about the strikes and Tony Katz’s thoughts on everything, click the link below.