SAG-AFTRA Proposes AI Tax on Studios to Protect Digital Performers
Unable to Halt AI, SAG-AFTRA Eyes Studio Tax on Digital Performers
SAG-AFTRA, facing the unstoppable rise of AI in Hollywood, is shifting gears from outright bans to a pragmatic tax on studios using synthetic performers in films and TV shows. This move acknowledges that generative AI has outpaced traditional regulations, prompting the union to propose fees similar to residuals or pensions. Dubbed the 'Tilly tax' in some circles, these contributions would funnel into funds supporting displaced actors, training programs, and health benefits, ensuring human talent benefits even as digital replicas proliferate.[1][2]
The Tax Mechanism and Negotiation Landscape
Ahead of February 9 negotiations on AI and streaming pay, the tax would apply broadly to AI usage, regardless of evolving tech, sidestepping jurisdictional hurdles in global productions. Unlike rigid contract clauses, this flexible levy treats synthetic actors as taxable events, potentially reshaping studio budgets while providing performers fair compensation for lines or visuals generated from AI models. Recent Interactive Media Agreements already mandate consent and payments for digital replicas, setting precedents.[3][5]
Implications for Hollywood and Beyond
This strategy could disadvantage unionized productions if studios dodge via offshore workflows, but success might inspire labor groups in writing, music, and visual arts battling similar disruptions. By making AI use costlier than hiring humans, SAG-AFTRA aims to protect jobs and likeness rights in an industry where technology evolves faster than contracts.[1][6]
About the Organizations Mentioned
SAG-AFTRA
SAG-AFTRA is a prominent American labor union representing about 160,000 members across film, television, radio, and digital media, including actors, singers, voice actors, influencers, models, journalists, and DJs. It stands for the Screen Actors Guild - American Federation of Television and Radio Artists and is affiliated with the AFL-CIO, the largest federation of unions in the U.S.[2] The organization was formed in 2012 from the merger of two historic unions: the Screen Actors Guild (SAG), established in 1933 to protect motion picture actors and improve working conditions, and the American Federation of Television and Radio Artists (AFTRA), which traces back to 1937 when the American Federation of Radio Artists (AFRA) was founded. AFTRA evolved through mergers and expansion to include television and radio performers, advocating for fair pay, non-discrimination, and increased opportunities for women, minorities, seniors, and people with disabilities[1][4][5]. SAG-AFTRA plays a critical role in negotiating contracts, ensuring fair compensation, and protecting intellectual property rights for its members in an evolving entertainment landscape that now includes streaming and digital platforms. It is deeply embedded in the entertainment industry, influencing how performers are employed and compensated across traditional and new media[2]. Beyond labor advocacy, the SAG-AFTRA Foundation supports members through educational programs, scholarships, and resources. Since its incorporation in 1985 and especially after becoming the SAG-AFTRA Foundation in 2015, it has expanded initiatives such as on-camera labs, virtual programming, and the Robin Williams Center, adapting to challenges like the COVID-19 pandemic by shifting to virtual support and producing thousands of online programs[3]. Notably, SAG-AFTRA’s ongoing efforts reflect a commitment to diversity, inclusion, and adapting to technological change, ensuring that its members thrive in a rapidly transforming industry that blends traditional media with digital innovation. This makes it a vital organization at th
