Summary

  • Hollywood actors and writers have gone on strike simultaneously, causing a shutdown of the industry. Netflix, however, remains unaffected and even sees potential gains amidst the turmoil.
  • The strikes are centered around fair pay, particularly in regards to residual checks from streaming platforms like Netflix. Actors have called out the streaming giant for low residual pay rates and lack of transparency.
  • Despite the industry shutdown, Netflix reports a strong financial performance, with increased global subscribers and projected revenue growth. The company also shows interest in embracing artificial intelligence, further aggravating actors and writers.

In a surprising turn of events, many Hollywood actors went on strike alongside writers after SAG-AFTRA failed to reach a deal with the industry’s biggest studios under the leadership of its president, Fran Drescher. It is the first time that actors and writers have gone on strike at the same time since 1960 and the effect can already be felt in Hollywood and beyond.

And while the studios have had no access to Hollywood creative talent since the strike started, it seems that Netflix still isn’t hurting at all. On the contrary, the streaming giant is even poised to make some gains amid industry turmoil.

Actors And Writers Have Been Picketing Outside Netflix And Major Studios

Missy Peregryn at the SAG-AFTRA strike outside Netflix's office in New York
Missy Peregryn pickets during the SAG-AFTRA strike outside Netflix's office in New York
via Instar

The Screen Actors Guild – American Federation of Television and Radio Artists (SAG-AFTRA) began its negotiations with studios and networks in June, just a month after its sister union, the Writers of Guild of America (WGA), already voted to go on strike.

For a time, it looked like an amicable agreement would be reached but on June 27, an open letter signed by several actors made it clear that they, too, are ready to go on strike if it comes to it. Among the letter’s signatories were Meryl Streep, Jennifer Lawrence, Quinta Brunson, Julia Louis-Dreyfus, Connie Britton, Kevin Bacon, Neil Patrick Harris, Joey King, and Rami Malek.

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In an effort to avoid a strike, the SAG-AFTRA negotiations were also further extended but to no avail. By July 12, the union announced that its negotiating committee voted unanimously to recommend a strike. The next day, SAG-AFTRA announced that all the work would officially come to a halt at midnight, putting Hollywood on immediate shutdown.

Under the strike rules, actors would not be allowed to conduct any on-camera or off-camera work, including attending premieres or promoting projects in any way. They are also barred from doing any negotiations for future projects while the strike is ongoing.

Since the WGA and SAG-AFTRA strikes have converged, several A-list stars have already taken to the picket lines outside the offices of Netflix, Fox Entertainment, Warner Bros., Disney, and other major studios in Hollywood and New York.

These include Susan Sarandon, Jessica Chastain, Seth Rogen, Jack Black, Jason Sudeikis, Rosario Dawson, Jennifer Garner, Olivia Wilde, David Harbour, Paul Giamatti, Lucy Liu, Yvette Nicole Brown, Carla Gugino, King, Bacon, and many others.

Several Actors Have Spoken Out Against Netflix And Their Unfair Residual Pay

Picketing SAG-AFTRA members outside Netflix's New York office
SAG-AFTRA members pose outside Netflix's New York office
via Instar 

At the center of the dual strikes is the issue of fair pay, especially when it comes to residual checks that onscreen talent and off-screen creatives receive from streaming platforms.

Since the strike started, several actors have openly talked about their incredibly low residual pay despite the streaming success of their shows worldwide. Many have also called out Netflix for its residual pay rates and alleged refusal to be transparent in how residual payments are calculated.

For instance, actor Kimiko Glenn, who appeared in over 40 episodes of Netflix’s Orange Is the New Black, posted a now-viral TikTok video to show her foreign royalty statement that only paid $27.30. Several recurring stars have also since spoken with The New Yorker, revealing similar experiences.

Among them was Emma Myles, whose residual pay for Orange is the New Black in 2023 is $20. Another unidentified actor on the show also said that when Netflix went global, they saw their residuals go down. Eventually, they got “more disgruntled about money, mostly because of how incredibly popular the show was.”

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At the same time, Sean Gunn also called out the streaming giant, even picketing right outside Netflix offices. During an interview at the picket line, the actor revealed that he hasn’t received any substantial residual payments since the show Gilmore Girls became available on Netflix.

That said, it was later pointed out that Warner Bros. is responsible for paying out residuals for the show instead of the streamer.

Ellen Pompeo has called out Netflix on social media for not paying actors residuals. Her Grey’s Anatomy, the longest-running medical drama, is available on the streamer’s platform. However, the actress never went into detail about her own residual pay for the show.

Here's Why The Writers And Actors' Strike May Work Out Well For Netflix

Ted Sarandos, CEO of Netflix Instar

Now, Hollywood may effectively be shut down since the strikes, but Netflix has remained seemingly unaffected. In a letter to shareholders published on July 19, the company revealed an operating profit of $1.8 billion and an eight percent increase in global subscribers for the second quarter of 2023.

At the same time, this period saw Netflix expand its paid sharing scheme to 100+ countries with the company noting that the “cancel reaction” has been “low.”

At the same time, the streamer also continues to have a positive outlook amid the strikes, even projecting that it will reach a revenue of $8.5 billion during the third quarter, which is up by seven percent year-on-year. Netflix also noted that it expects its revenue growth to “accelerate” as it further monetizes on its recently launched paid sharing system.

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And while writers and actors have taken a stance against the use of artificial intelligence (AI) in the industry, it seems that Netflix is looking to embrace the trend. Since the strikes, the streamer has even published a job listing for a new position under its Machine Learning Platform team.

According to a report from The Intercept (via BBC), the job will pay up to $900,000 a year. Several actors (and writers) have since noted this move by Netflix as a slap in the face to their profession.