It’s called the Tilly tax.
In the future, studios that use synthetic actors instead of humans may have to pay royalties to union funds.
This is one of the ideas being considered as SAG-AFTRA prepares for talks with studios on February 9th.
Artificial intelligence was at the heart of the 2023 Actors Strike, and it has become even more urgent ever since. While social media is full of vile information, a user-generated video of Leia and Elsa is coming to Disney+ soon. And then there’s Tilly Norwood, a digital work that crystallized concerns about AI last fall. Although SAG-AFTRA has won some protection for AI in the strike, it can’t stop Tilly and his friends from stealing jobs from actors.
However, it may be possible to extract compensation.
“Is it the perfect solution? No,” says Brendan Bradley, a member of Labour’s AI task force. “But this would be in the category of the worst possible ideas for 2026.”
The threat of new attacks always exists, but the alert level is currently low. SAG-AFTRA agreed to negotiations unusually quickly, months before the contract expires on June 30, and there is even optimistic talk of closing the deal in March.
The Motion Picture and Television Producers Alliance has hired former SAG leader Greg Hessinger as its new chief negotiator. Early signs suggest he may be more flexible than his predecessor, Carol Lombardini, whose mantra was “no,” according to disgruntled union officials.
An AMPTP spokesperson said both studios look forward to reaching a “fair deal” that supports the long-term stability of actors and the industry.
SAG-AFTRA chief negotiator Duncan Crabtree Ireland and President Sean Astin are preparing to meet with the Alliance of Motion Picture and Television Producers next month.
Rocco Cesselin/SAG-AFTRA
AI is a big topic, but it is by no means the only issue. The move to streaming was also key to the strike, but the resulting deal left unfinished business.
“The number one thing is still Remain,” said Kate Bond, a 2023 strike leader and member of the union’s Los Angeles board. “Is there a way to ensure that when a show goes up on a streaming platform, I receive an amount equal to the network residual?”
At one point during the strike, SAG-AFTRA demanded 1% of streamers’ total revenue, or about $500 million annually. The union settled for a streaming “success bonus” estimated at $40 million a year, but the amount was well below that.
Union negotiators are expected to seek improved terms. However, some actors remain deeply dissatisfied with this compromise.
In the era of broadcast and cable, actors were paid for each rerun. The actors of the hit show are
Relying on residuals to maintain a middle-class lifestyle for years. Rebroadcasts do not exist on streaming.
The residuals are relatively small.
“I think we lost our way when we were negotiating for bonuses instead of staying,” said actor Jeffrey Reeves, who has been critical of the union leadership. “We abandoned the pay-per-play or pay-per-viewer model.”
Streaming shows have longer hiatuses between seasons, sometimes spanning years. SAG-AFTRA is seeking to limit exclusivity clauses that prevent series regulars from seeking work on other shows during downtime, which is expected to be an issue in future negotiations.
Also, some actors are dissatisfied with their self-recorded auditions. This is a coronavirus-era innovation that has required many actors to invest in home studios to try out roles.
But the most existential fear remains AI. After the 2023 strike, the union went on a year-long strike against video game companies over AI. And, through contracts with record labels and commercial producers, they earn royalties on fully synthetic performances. In the case of union commercials, if actors are replaced by AI performers, equivalent compensation must be contributed to SAG-AFTRA’s pension and health funds.
Actors remain stunned by the idea of being replaced by a digital combination of another actor’s performance, or of their performance being used to replace another actor’s performance.
“No actor wants that,” says Eric Pasoja, former co-chair of the union’s LA New Technology Committee. He sees the Tilly tax as a last resort.
“I say no, no, and triple no,” he says. “But if it must be done, it should be spent on pensions and health care.”
