Hollywood Is In Crisis, And Here's Why
Image Source: Dreams Time
Hollywood has recently entered a very dark phase of its existence. Some of the problems studios are facing are very clear to see. Blockbuster movies are having mediocre box offices compared to those of the past decade. In addition, some productions that would have had major success just a short time ago are not making the same splash as before. This is leading to a major debate within the industry and those who cover it about possible course corrections that may happen in the future.
Another huge issue is the division of profits and overall revenue. Studios are not sharing their gains from the success of streaming platforms. While executives from both Warner Bros. Discovery and Disney are making as much money as they ever did, writers, VFX artists, stuntpeople, and most actors are having a difficult time making ends meet. The improvement of Artificial Intelligence (AI) is helping studios overcome an almost-impossible barrier - the need for humans to participate. Image rights are an essential part of an actor’s ability to sustain a decent life. These obstacles that the industry has been facing for some time already have officially come to the surface. Considering all that, let’s talk about it.
RELATED:
The Battle For Residuals
Image Source: Los Angeles Daily News
The Screen Actors Guild - American Federation of Television and Radio Artists (SAG-AFTRA), which is the union that represents actors in the United States (U.S.), has been trying to negotiate a deal with the AMPTP (Alliance of Motion Pictures and Television Producers) for more benefits and salaries. On some topics, though, the alliance has not made significant moves toward an agreement. SAG-AFTRA has highlighted similar problems to those of the Writers Guild of America (WGA). No Film School presents one specific part of the deal that exemplifies this matter:
“NEW MEDIA REVENUE SHARING: Casts share in the revenue generated when their performances are exhibited on streaming platforms. This would allow casts to share in the success of high-performing shows; AMPTP COUNTERS: Rejected.”
On the other hand, the WGA made a really interesting argument regarding increasing the quality of life for writers. According to the guild, if the studios accepted their proposals, the budget required for this would not be destructive. They even argue that the price - a whopping US$ 429 million - would be just a small fraction compared to the billions of dollars that these companies have earned off the writers’ hard work, as Variety points out:
“These companies have made billions in profit off writers’ work, and they tell their investors every quarter about the importance of scripted content. Yet they are risking significant continued disruption in the coming weeks and months that would far outweigh the costs of settling.”
Among the shared complaints, it is worth mentioning streaming residuals. Those became part of a crucial argument during the past few years after the emergence of platforms like Netflix, Disney+, and HBO Max, for example. Actors and writers alike have not been paid much for their contributions to the shows they helped make. It went as far as Lizzie McGuire’s Robert Carradine sharing a picture of a US$0 check he got from Disney. This could have been seen as an isolated situation a few years back, but considering the ongoing strikes, Carradine’s picture of the check was worth much more than a thousand words. Besides the check, one could ask him or herself the following: is not the check worth more blank than what Carredine got as a residual payment?
Streaming has certainly shaken the world with its speed and reach. People do not have to pay for a single DVD/Blu-ray disc every time a movie comes out. But this has also generated another problem for them. Releasing block-busters for streaming purposes is partially killing them. Box offices have not been the same for a while, and they might not be how they were ten years ago, for example. There are a few exceptions, as always. The recent success of “Barbenheimer” - how fans cleverly called the simultaneous release of Barbie and Oppenheimer - does not prove this point but establishes itself as an exception and at the same time a rule.
While the standard for production has been elevated, the amount of projects in development has lowered the bar. Superhero movies - and their heavy usage of VFX - is the epitome of this issue. However, studios’ bad choices should not affect hard-working people throughout Hollywood. They deserve a share because they are the gears that made this happen in the first place. There are several cogs in the machine, and without just a single one of them, nothing works. This is how they have to be seen publicly.
Financial Stability At Risk
Image Source: The Hollywood Reporter
There are always two sides of the same coin in Hollywood when it comes to money. Even though actors are portrayed as living marvelous, luxurious lives, most do not live like that. Lots of them go through financial trouble during their careers. Harrison Ford, for example, was an actor and worked in carpentry at the same time. Silvester Stallone did all sorts of jobs before his starring role as Rocky Balboa.
This trend, unfortunately, continues. The Washington Post accentuates the life of Josh Hooks, an upcoming actor that is currently working cleaning apartments for friends of his. This situation does not seem like it is going to get better if studios do not budge. While one executive told Deadline that holding back was essential to the studios’ strategy, and that “the endgame is to allow things to drag on until union members start losing their apartments and losing their houses”, another mentioned that these actions are “a cruel but necessary evil”. If US$ 27.73 per hour (the average pay for actors in California according to the US Bureau of Labor Statistics) was not enough to live well, imagine trying to live without it.
A vital part of Hollywood - stunt people - also need some appreciation. They are the ones who put their lives at risk for special effects and their counterparts to look great for the camera. It does not come without an enormous cost for them. Broken limbs and serious muscular injuries are common in this business. But this should not come cheap for the studios. If putting their lives on the line - in some situations quite literally - is a deciding factor for lots of movies nowadays, these unsung heroes should be rewarded for it. The Los Angeles Daily News mentions the argument of Marie Fink, who works as a stuntwoman:
“I get crashed into walls, hit by cars, lit on fire, thrown down ‘anything’ — and am asked to do it repeatedly in a skirt and heels without pads. Everyone in this industry works so hard at their jobs. We all love it. stunt performers, we get concussions, we have trauma. It’s important to us that we’re taken care of and everyone else is taken care of, financially.”
An article from The Guardian points out how this has become a widespread problem in the industry. Not only are studios and actors losing money, but the whole economy that at the same supports and is supported by them. Several small/medium businesses in the greater Los Angeles area are struggling. The article mentions that Hollywood (as in production, studios, and such) is not just the Walk of Fame but also several other smaller cities in California. Burbank, Glendale, San Fernando Valley, and Culver City are deeply intertwined with entertainment, providing different types of services to Hollywood. These places were able to briefly creep out of the shadow cast by Covid, but the strikes now are becoming a drawback:
“In many of these places, businesses with an industry clientele – whether they service Hollywood directly as drivers, caterers and makeup artists, or are part of a secondary economy of restaurants, coffee shops, photo studios, hair and nail salons, and so on – are experiencing the strike as a double whammy after Covid and its aftershocks.”
It is a harsh position these businesses are in right now. The blame put on the moment is fair, but they must have the right target in mind. The strikes serve as an important negotiation tool for workers. If the conditions are not right, working is no longer sustainable. The real villain is not the artists and writers, but those way above on the food chain. The Guardian also focuses on arguments from Angela Marsden, owner of the famous Pineapple Hill Saloon & Grill in San Fernando:
“I was calling out the big people who were picking and choosing who’s essential and who isn’t. That’s the fight the actors and writers are in now. I don’t think they have a choice. If they give in, the industry’s not going to need them at some point. Some businesses won’t make it through if this goes on. But I do stand by them in their fight. I hope every other union will join them.”
The ongoing strikes from SAG-AFTRA and the WGA are, of course, a battle for better payment, benefits, and a share of the billions of dollars Hollywood studios earn every year. Despite the box-office trouble superhero movies are going through in the past year or so, this does not justify it. The income inequality between blue-collar workers and executives has been growing considerably. Major changes should be promoted to satisfy these people as financial woes multiply within the American population. As a consequence, if these improvements are done in a decent time frame, businesses connected to the entertainment industry (like those mentioned above) may not be extremely affected. So, solving this matter should be of the utmost importance to studios right now. When done, an enormous chain reaction is going to happen. But progressing beyond simple negotiations is critical.
More Visibility To A Noble Cause
Image Source: The Hollywood Reporter
Some actors took to the streets to help with the SAG-AFTRA/WGA strike. Although they did not need to do it, this gesture showed lots of empathy from people they probably do not hang out much with during production. Al-Jazeera mentions that high-earning actors became a decisive element during this battle. Even though they are not seriously affected by the strike because they negotiate individual contracts, showing up at strikes and showing solidarity shows the importance of the people there for them. They bring more visibility while siding with the cause, making studios think twice about being money-hungry. Actors like Cillian Murphy and Margot Robbie, the stars of Oppenheimer and Barbie, demonstrated this type of attitude:
Others like Jason Momoa and Dwayne Johnson, both of whom have been in major projects during the past decade, also participated in one way or the other. Momoa made a significant donation of gallons of water to the strike, thus aiding with the extreme heat wave that several parts of the U.S. have been under during July. Johnson took things even further, making a 7-figure contribution to the union that, according to USA Today, was “the largest total contribution received from an individual donor in the union's nearly 40-year history.” Along with these acts, there were several artists that, even though they sometimes did not contribute monetarily, helped by being there with the crowd. The Guardian features important ones like Olivia Wilde, Susan Sarandon, Rosario Dawson, Jason Sudeikis, Paul Dano, and Adam Scott. The list goes on as many have been joining picket lines lately.
But while most actors seem to be on the same page as SAG-AFTRA and the WGA, others may have misunderstood what striking is all about. One of these people was CW’s Arrow Stephen Amell, who had an interesting choice of words about the current situation in Hollywood. Even though he tried to state that he stood with his union, he found that “the entire thing (striking) is incredibly frustrating.” Amell later took to Instagram to try to backtrack from his original speech, mentioning that although he still thinks striking is a legitimate strategy, he feels emotionally frustrated with what has been happening: “Our leadership has an incredibly complicated job and I am grateful for all that they do. Despite some of my terrible early acting work, I assure you, I’m not a robot. From an intellectual perspective, I understand why we are striking, but that doesn’t mean it isn’t emotionally frustrating on many levels for all involved.”
Nonetheless, this is a topic for which all actors, no matter their current work status, have to be on the same side. These negotiations between SAG-AFTRA and the AMPTP are an important part of a struggle that has been brewing for some time already. Displaying unity at this very moment is the best way to achieve the group’s goals. Of course, people do not have to behave in a hive-mind way. This is not the modus operandi of human beings and neither should be. But pointing out personal and polemic opinions right now is not the way to assure that both actors’ and writers’ goals are reached.
The Threat Of AI
Image Source: Wikipedia
AI has, during the past year or so, become a major threat in the entertainment/artistic sector. The increase in the development of such tools brought out a considerable amount of criticism from actors and writers alike. AI not only has the chance to turn itself into a cornerstone of Hollywood but also deeply affects the bread-winning capacity of those involved in productions all over the globe. The major fear surrounding AI is that after an actor or writer dies or moves on from a studio, their likeliness is going to be used for eternity without their consent or monetary compensation. This would jeopardize how their families are covered in the long term, something that is not acceptable. So, guaranteeing rights at times of social upheaval is a respectable goal. They have to strike while the iron is still hot.
The fear of using AI is shared amongst the different parts of Hollywood. Studios like Disney are already preparing themselves for this transition, scanning people’s bodies with advanced camera rigs. NPR points out that one of the most worried groups is background actors, who usually make close to the SAF-AFTRA minimum rate of US$ 187 per day. Being ok with your body being scanned is a two-edged sword, according to the article. Allowing such practice makes studios see actors with better eyes and more acceptable to change, thus providing more acting opportunities. But, if the person refused to take part in this new trend, this path could put them out of work. In either case, they do not have the upper hand. If scanned and recorded, studios could just say “We do not need you anymore, thanks.” since they could just replace your voice, face, and body digitally at a moment’s choice.
This is a shared problem. Not only are part-time and smaller roles actors in fear of losing their jobs and bodies but also those that have been in the industry for decades already, like the case of renowned actress Susan Sarandon. She argues that this fight is pivotal and is worth it. She questions the choices made by higher-ups about this type of technology. The biggest problem, according to her, is that there are no safeguards for them: “AI will affect everybody. There’s always been the feeling that if it isn’t solved now, how do we ever solve it in the future? If you don’t have the foresight to put something in place for the future, then you’re screwed.”
Like most things nowadays, either The Simpsons or Black Mirror has predicted it. In this specific case, a recent Black Mirror episode featuring Salma Hayek brings this problem to light. The plot, according to the BBC, shows Hayek’s character in distress after finding out that she had signed away her image rights for AI usage. This is already, unfortunately, a reality. But the consequences are more significant than they seem. Since this kind of technology is ground-breaking, there is no copyright law in place to protect people. We reported back in December that artists that post their content on the internet may have had their work stolen and used by AI to generate partially-recycled material - the possibilities, no matter how grim they look, are endless for money-hungry movie executives.
The most recent case (and not the last) for this is the opening credits of Marvel’s Secret Invasion, which features Samuel L. Jackson once again as Nick Fury with morphing images using AI. The show’s premise works perfectly with the topic at hand. Shapeshifting beings that can take the place of humans, but we can not notice the difference. The criticism was refuted by Method Studios, the creators of this scene. According to them,
“The production process was highly collaborative and iterative, with a dedicated focus on this specific application of an AI toolset. It involved a tremendous effort by talented art directors, animators (proficient in both 2D and 3D), artists, and developers, who employed conventional techniques to craft all the other aspects of the project. However, it is crucial to emphasize that while the AI component provided optimal results, AI is just one tool among the array of toolsets our artists used.”
At the same time, AI is being seen as both the enemy and a tool for artists. A balance has to be found between those two sides, but taking jobs away should not be even considered. Humans and their emotions, appearances, and ways of observing the world are what individualize us from machines in general. AI is certainly a huge advancement of technology, there is no denying it. But replacing people altogether can not be in the cards. What waits for humanity - and consequently Hollywood - in the future is a mystery.
What Happens Next?
Solutions are hard to find, no matter where. But this current period for Hollywood should be used as a good example now and in the future. Everything that was mentioned in this article is the beginning of a hard and long process of contestation. When people figure out their current place in society it usually gets harder before it gets easier. With the fast improvement of technology on all frontiers, conflicts between humans and machines are bound to happen. As cool and adventurous as it sounds, the plot of Terminator is probably not a reality just yet. AI, streaming, and income inequality are deeply laced and feed off each other. Present-day questions that Hollywood is facing will take some time and negotiation to end. What people need to have in mind is that standing together is the best strategy.
READ NEXT:
Sources: Al-Jazeera, BBC, CNN, Deadline, The Express, Los Angeles Daily News, No Film School, NPR, The Guardian [1], [2], Vanity Fair [1], [2], Variety, Polygon, USA Today, The Washington post
Latest News
Featured
