Hollywood is facing a major industry-wide strike as 65,000 actors from the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) have taken to picket lines in a fight for higher pay and protections in the age of streaming and artificial intelligence. The strike has brought productions to a halt and has garnered support from prominent actors such as Meryl Streep, Ben Stiller, and Colin Farrell.

The main points of disagreement between the actors and studios revolve around pay raises and regulation on the use of AI in creative projects. Actors are demanding an 11% raise to baseline rates this year and an 8% raise over the next two years to compensate for inflation. However, the studios have countered with an offer of 5% this year and 7.5% in the next two years, which the actors consider inadequate.

The issue of streaming is also a key concern for actors. Residual payments, which actors receive when their work is re-aired, have significantly decreased due to the rise of streaming services. Instead of receiving payments each time their work is viewed, actors are now paid a smaller amount to have their shows or movies available on these platforms. This has resulted in lower earnings for actors, even for those in prominent roles on popular series.

The actors' union, SAG-AFTRA, has proposed that its members should receive a share of the revenue generated by streaming platforms, but the studios have rejected this proposal. Furthermore, the use of AI in the industry is seen as a threat to actors' livelihoods. The actors want strong protections against their likenesses being used to train AI and assurances that they won't be replaced by digital copies.

While a small number of big stars can earn millions of dollars per film, the majority of working actors earn far less. Roughly 87% of SAG-AFTRA members earn less than $26,000 a year from acting, making them ineligible for health coverage through the union. The median pay for actors last year was nearly $18 an hour, with hourly rates in California averaging at $27.73 and $63.39 in New York. However, acting work is often intermittent, and many actors hold other jobs to make ends meet.

The strike has caused a significant disruption in the industry, with TV shows and movies facing delays in production. The Alliance of Motion Picture and Television Producers (AMPTP), which represents the major studios, has criticized SAG-AFTRA for choosing to strike and warned of financial hardships for those dependent on the industry. The studios have offered substantial increases in pension and health contributions, as well as a groundbreaking AI proposal to protect performers' digital likenesses.

The strike is expected to have ripple effects on the entertainment industry, with potential delays in film releases and changes to television lineups. The full impact of the strike remains to be seen as negotiations between the actors' union and the studios continue.