SAG-AFTRA Considers Studio Tax on AI Digital Performers

In a significant development for the film and television industry, SAG-AFTRA is considering the implementation of a “Tilly tax.” This tax could require studios to pay royalties into a union fund for using synthetic actors, particularly those created by artificial intelligence. The proposal is gaining traction as the union prepares to negotiate with studios on February 9, 2024.

Background on AI Concerns

The rapidly evolving technology surrounding AI in entertainment became a central issue in the 2023 actors’ strike. Prominent digital creations, like Tilly Norwood, have heightened fears about job security for human actors. While SAG-AFTRA secured some protections during the strike, concerns remain over AI potentially replacing traditional roles in the industry.

Upcoming Negotiations

SAG-AFTRA is set to approach negotiations early this year, months ahead of the June 30, 2024, contract expiration. This proactive approach follows a period of significant tension regarding AI and other issues, including streaming services. Industry officials are hopeful that the new lead negotiator for the Alliance of Motion Picture and Television Producers (AMPTP), Greg Hessinger, will be more accommodating than his predecessor.

Key Issues on the Table

• AI Implementation: The “Tilly tax” aims to address compensation for performers replaced by AI.
• Residual Payments: Actors are pushing for better terms concerning streaming residuals.
• Exclusivity Clauses: The issue of actors being unable to pursue other opportunities during long hiatuses is on the agenda.
• Self-taped Auditions: Many actors express dissatisfaction with the shift towards self-taped auditions, requiring expensive home studio setups.

Before the strike, SAG-AFTRA had sought 1% of streaming services’ total revenues—estimated at $500 million annually—but settled for a streaming “success bonus” expected to yield only $40 million. Many actors feel that this compromise overlooks traditional residuals that offered financial stability in earlier broadcasting models.

Concerns Among Actors

Despite advancements in negotiations, frustration remains palpable among actors. They are concerned about the implications of AI technology on job security and the monetization of their work. As Erik Passoja notes, the idea of a “Tilly tax” feels like a last resort rather than an ideal solution.

With these discussions looming, the union remains committed to achieving a deal that adequately addresses the complex issues surrounding AI in the industry while preserving job security for its members.