The WGA and SAG strikes highlight a major problem with the streaming model, explaining why streamers don't want to pay performance-based residuals.
Summary SCREENRANT VIDEO OF THE DAY SCROLL TO CONTINUE WITH CONTENT The WGA and SAG-AFTRA are striking simultaneously for the first time since the 1960s, and until they each reach an agreement with the Alliance of Motion Picture and Television Producers, new movie and television production is at a virtual standstill.
As a new technology, there's no existing laws or contract agreements in place to protect writers and actors from AI. In the case of writers, this means anything they write could be analyzed by an algorithm and used to generate new scripts imitating their style without pay. In the case of actors, this means their likeness could be used to generate CGI characters and replace without paying them, which is particularly a threat to background actors.
How the Streaming Model Broke Residuals Since studios aren't transparent with streaming data, the pay structure for talent typically doesn't include residuals based on a show's performance. Netflix, for example, classically pays writers and actors up front including an amount similar to what they'd be paid in residuals of a show were a big hit on TV. There's a number of issues with this model.
This model doesn't only make it impossible to directly attribute streaming platform revenue to any particular piece of content, but it also creates a disincentive to spend money on anything that doesn't drive new subscriptions.
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