"I was raised in a union household:" Netflix CEO expresses sympathy for striking actors and writers
After announcing billions of dollars in cash flow and millions of new subscribers, Netflix's co-CEO seemed to raise an olive branch to the striking actors and writers.
"Let me start by making something absolutely clear," said co-CEO Ted Sarandos. "These strikes, this strike, is not an outcome that we wanted."
Sarandos' statement, his first since the Screen Actors Guild joined the picket lines, came as Netflix announced solid earnings on Wednesday. Amid a $5 billion cash flow and after learning the streaming service gained almost 6 million new subscribers, the multi-millionaire offered an appeal to the striking performers and writers.
"I was raised in a union household," Sarandos said. "My dad was a member of IBEW Local 640. He was a union electrician. I remember his local because that union was very much a part of our lives when I was growing up. I also remember on more than one occasion my dad being out on strike. And I remember that because it takes an enormous toll on your family — financially and emotionally. So, you should know that nobody here, nobody within the AMPTP and I'm sure nobody at SAG or the WGA took any of this lightly."
The Writers Guild of America was the first union to go on strike in May before some 160,000 actors joined them, marking the first dual strike since the 1960s. For over two months, Hollywood has ground to a halt as these behemoths stand at a stalemate.
"I think stonewalling is their preferred technique," said Fran Drescher, president of SAG-AFTRA, about talks breaking down with studios. "I wish we would be talking to the other side. We said we would start talking to them immediately. But, they're punishing us. They don't want to talk to us."
The Alliance of Motion Picture and Television Producers, the union representing the studios, maintains SAG-AFTRA is distorting how the negotiations played out and said the actors walked away from a billion-dollar overall raise, which included more money for residuals, health benefits and new protections against artificial intelligence.
"Why would we go on strike if we were offered such an incredible deal," said Drescher. "It doesn't make sense. We're not making $78,000 a day like the CEOs."
With Netflix's new earnings report and subscriber growth, the company is faring better than the other major streamers like Disney, Warner Brothers, NBC Universal and Paramount.
Paramount Pictures, one of the studios involved in the negotiations, and CBS News and Stations are both part of Paramount Global. Also, some CBS News and Stations staff are SAG-AFTRA or Writers Guild members; though, their contracts are not affected by the strikes.
The differences in how the companies are performing may be something unions are hoping plays to their advantage.
"I think there's a lot of feeling on the union side that these AMPTP companies... they can't possibly stay aligned forever either," said Variety senior media reporter Gene Maddaus. "That sooner or later, one of them will crack and split off."
The studios may also be employing a similar strategy.
"I think, obviously, from the AMPTP side, the hope is the actors who actually have jobs to go to and projects in the works are going to... get fed up with this and tell the leadership it's time to end this."
Netflix's CEPO also said there are a handful of complicated issues to be dealt with but is committed to getting an agreement as soon as possible — one that is equitable and allows everyone in the industry to move forward into the future.
