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The Economist Podcasts
Thu, July 27, 2023
Podchat Summary

The Hollywood Strikes: Then and Now

In 1960, a historic strike took place in Hollywood as actors and writers demanded royalties for films shown on television. This six-week strike resulted in a groundbreaking settlement that established royalties for films produced from 1960 onwards. Fast forward to today, and actors and writers find themselves once again on strike, this time over streaming residuals and the looming threat of artificial intelligence (AI).

The current strike revolves around two key demands from actors. Firstly, they are calling for residuals that accurately reflect the popularity of streaming platforms. With the rise of streaming services like Netflix, actors argue that their compensation should align with the success of these platforms. Secondly, actors are demanding control over the use of their likeness in AI-generated content. As AI technology advances, there is a concern that actors' images could be used without their consent, raising questions about ownership of intellectual property.

On the other side of the negotiation table, the studios, including streaming giants like Netflix, are hesitant to share detailed viewing figures. They propose the use of AI to replace background performers, which could potentially lead to fewer physical roles for actors and more projects with smaller budgets. The impact of AI on the industry remains uncertain, but it has the potential to reshape the way films and TV shows are produced.

While some fear the consequences of AI, others argue that it could bring benefits to the industry. AI has the potential to create more diverse and compelling content for smaller audiences, opening up new opportunities for creativity and storytelling.

As negotiations continue, the strike remains ongoing, with actors and studios yet to reach a resolution. The outcome of these discussions will have far-reaching implications for the future of the entertainment industry, shaping the relationship between actors, studios, and emerging technologies.

Original Show Notes

The only action taking place in Hollywood is on the picket lines. Thousands of writers and actors have taken to the streets to protest the way that technology has affected their wages. At the top of their list of demands is a change to the way they are compensated when shows air on streaming services, like Netflix. But filmmakers' use of artificial intelligence is also in the spotlight as concerns mount about how companies might use actors’ likenesses. 

On this week’s podcast, hosts Alice Fulwood and Mike Bird examine how tech is transforming Tinsel Town. The Economist’s Aryn Braun hears from actors on the picket line. Analyst Michael Pachter explains why Netflix may benefit from giving actors a big pay rise. And Tom Graham, the boss of effects firm Metaphysic, says AI could deliver Hollywood-quality fan fiction movies.

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