Writer's Guild Strike
If you haven't already, I recommend you browse the wikipedia site on the writer's strike (http://en.wikipedia.org/wiki/Writer%27s_strike) to understand a little better what they are striking for. The page is slightly biased for the writers, but I think this is a case (to some degree) of "corporate fat cats" taking advantage of people who are in their employ. Check out the WGA website too (http://www.wga.org)
A few key points:
-Writers currently get only 0.3% of the gross sales from DVDs. This is a holdover from the original 1988 agreement regarding VHS and Betamax tapes; in which the writers gave up a significant part of their usual residuals (often 2-3% of the gross) in order to help allay the costs of establishing "new media." Since DVD and VHS are no longer a "new media" and are a proven outlet (grossing something like 3 times box office revenue annually...a $4.8 billion market), the writers want the same residuals as other areas.
-Internet distribution is going to be huge-If you watch a show on NBC.com (with ads, mind you...so NBC is getting money from advertisers) the writers get nothing. More and more people are going to be migrating away from pure broadcast television for their entertainment. Writers get NOTHING (0.0%!) from shows distributed over the internet.
-Other issues being discussed are the timely payments of residuals. The Writers Guild wants payment within 30 days of when the studio gets money for the sale of a DVD or from the broadcast or rebroadcast of a program.
-Clarification and better pay and residuals on reality TV shows. The studios are arguing that they are not "written" in the true sense of the word. While true, the producers (for example) get some residuals from reality shows, but the writers who craft the scenarios, challenges, and drama (as awful and vomit-inducing though it may be) get no residuals. Clarification for prime-time animated shows (The Simpsons, Family Guy, etc.) that are argued as not being "written" in the truest sense of the word.
-Nearly every statistic or statement issued by the studios uses the term "working writers;" this refers to writers who are CURRENTLY employed and working on a project. It is important to keep in mind (and this statistic is from the WGA, so is probably somewhat biased, but probably not totally offbase) that the average writer is not employed for about 4-6 months of the year...it's a cyclical thing and it's just how the industry works. Sure, you don't need residuals when you're getting paid right now, but your kids still gotta eat when you're between gigs!
Interesting to note, the SAG (Screen Actors Guild) contract is up in the summer, and many of the actors face the same issues that the writers are facing. Read this (http://www.minorcon.org/residuals.html) blog to see what an actor thinks about residuals. Keep in mind that the people these agreements matter for are NOT Tom Cruise, Jay Leno, Seth MacFarlane (writer/creator of Family Guy, American Dad!) etc who are already multimillionaires. These agreements matter for the thousands and thousands of Hollywood "small-timers" who you don't know. The minor characters who really flesh out the movies and TV shows, and the writers who write those parts. Sure, there's a headliner like Henry Fonda leading the way in 12 Angry Men, but where would he be without the Advertising Man or the Yankees Fan (played by actors whose names I don't even know- and that's the point!)?
Studios are beginning to reach independent agreements with the Writer's Guild. United Artists, a movie and TV studio now half-owned by Tom Cruise reached an agreement with them yesterday, as did Worldwide Pants, David Letterman's company. These studios diverged with the AMPTP (Alliance of Motion Picture and Television Producers) in reaching these agreements. Now, Tom Cruise is a wackjob, no doubt, but I think he understands the concept of money, and he has agreed to get a little less in order to give the writers a little more. Nobody is arguing that he is particularly generous, as he probably makes more money each year than any one of us will make in a lifetime, but nonetheless, he did give up a few bucks.
There have been accusations back and forth of bad faith, and both sides accused the other of walking out of the December negotiations. Nobody is right all the time, or 100% right, but I, personally, admire the writers who are out there on the streets. Ordinary people who need to feed their families agreed to stop working in order to fight for something that they believe, displaying a sort of daring.
Michael Eisner, former Disney CEO and current head of Tornante (an investment firm that just launched its own studio, "Vuguru," called the writers "stupid," and said that they shouldn't have struck yet, as their key issue, residuals from online distribution of content, will not make them much money at the moment. Take a guess what Vuguru's main market is. That's right, from their own website, "The studio produces and distributes innovative story-driven content for current new media and emerging platforms." (http://www.Vuguru.com/about.php) Eisner, who has his personal finances at stake in emerging content markets and new media distribution of entertainment, thinks it's stupid for them to argue for contractual protection and a piece of the revenue from online distribution of content they create? I don't think so. He obviously thinks it's going to be a good market, seeing as he staked his investment firm on it. And yet, he stated "For a writer to give up today's money for a nonexistent piece of the future - they should do it in three years, shouldn't be doing it now - they are misguided; they should not have gone on the strike."
Admittedly, the studios aren't making much money from online distribution-yet. The writer's contract was expiring (it expired on 31 OCT 07) and in the renegotiations, they demanded residuals from online distribution. Online distribution is going to be huge. Whether in a year or in five, online content distribution will be huge, and the writers didn't want the same thing that happened with DVDs to happen to them again.
The studios and execs are in a similar position to the RIAA in many ways; they're faced with a better education population, I think. A more "networked" present than they are used to, that is, demanding new business models. It will be interesting to see the result of the strike. Certainly, the writers are going to have to compromise a little, but how much, we will have to see. Once more studios start settling with the writers, there will be a sort of peer-pressure to settle, as competitors produce new materials.
A few key points:
-Writers currently get only 0.3% of the gross sales from DVDs. This is a holdover from the original 1988 agreement regarding VHS and Betamax tapes; in which the writers gave up a significant part of their usual residuals (often 2-3% of the gross) in order to help allay the costs of establishing "new media." Since DVD and VHS are no longer a "new media" and are a proven outlet (grossing something like 3 times box office revenue annually...a $4.8 billion market), the writers want the same residuals as other areas.
-Internet distribution is going to be huge-If you watch a show on NBC.com (with ads, mind you...so NBC is getting money from advertisers) the writers get nothing. More and more people are going to be migrating away from pure broadcast television for their entertainment. Writers get NOTHING (0.0%!) from shows distributed over the internet.
-Other issues being discussed are the timely payments of residuals. The Writers Guild wants payment within 30 days of when the studio gets money for the sale of a DVD or from the broadcast or rebroadcast of a program.
-Clarification and better pay and residuals on reality TV shows. The studios are arguing that they are not "written" in the true sense of the word. While true, the producers (for example) get some residuals from reality shows, but the writers who craft the scenarios, challenges, and drama (as awful and vomit-inducing though it may be) get no residuals. Clarification for prime-time animated shows (The Simpsons, Family Guy, etc.) that are argued as not being "written" in the truest sense of the word.
-Nearly every statistic or statement issued by the studios uses the term "working writers;" this refers to writers who are CURRENTLY employed and working on a project. It is important to keep in mind (and this statistic is from the WGA, so is probably somewhat biased, but probably not totally offbase) that the average writer is not employed for about 4-6 months of the year...it's a cyclical thing and it's just how the industry works. Sure, you don't need residuals when you're getting paid right now, but your kids still gotta eat when you're between gigs!
Interesting to note, the SAG (Screen Actors Guild) contract is up in the summer, and many of the actors face the same issues that the writers are facing. Read this (http://www.minorcon.org/residuals.html) blog to see what an actor thinks about residuals. Keep in mind that the people these agreements matter for are NOT Tom Cruise, Jay Leno, Seth MacFarlane (writer/creator of Family Guy, American Dad!) etc who are already multimillionaires. These agreements matter for the thousands and thousands of Hollywood "small-timers" who you don't know. The minor characters who really flesh out the movies and TV shows, and the writers who write those parts. Sure, there's a headliner like Henry Fonda leading the way in 12 Angry Men, but where would he be without the Advertising Man or the Yankees Fan (played by actors whose names I don't even know- and that's the point!)?
Studios are beginning to reach independent agreements with the Writer's Guild. United Artists, a movie and TV studio now half-owned by Tom Cruise reached an agreement with them yesterday, as did Worldwide Pants, David Letterman's company. These studios diverged with the AMPTP (Alliance of Motion Picture and Television Producers) in reaching these agreements. Now, Tom Cruise is a wackjob, no doubt, but I think he understands the concept of money, and he has agreed to get a little less in order to give the writers a little more. Nobody is arguing that he is particularly generous, as he probably makes more money each year than any one of us will make in a lifetime, but nonetheless, he did give up a few bucks.
There have been accusations back and forth of bad faith, and both sides accused the other of walking out of the December negotiations. Nobody is right all the time, or 100% right, but I, personally, admire the writers who are out there on the streets. Ordinary people who need to feed their families agreed to stop working in order to fight for something that they believe, displaying a sort of daring.
Michael Eisner, former Disney CEO and current head of Tornante (an investment firm that just launched its own studio, "Vuguru," called the writers "stupid," and said that they shouldn't have struck yet, as their key issue, residuals from online distribution of content, will not make them much money at the moment. Take a guess what Vuguru's main market is. That's right, from their own website, "The studio produces and distributes innovative story-driven content for current new media and emerging platforms." (http://www.Vuguru.com/about.php) Eisner, who has his personal finances at stake in emerging content markets and new media distribution of entertainment, thinks it's stupid for them to argue for contractual protection and a piece of the revenue from online distribution of content they create? I don't think so. He obviously thinks it's going to be a good market, seeing as he staked his investment firm on it. And yet, he stated "For a writer to give up today's money for a nonexistent piece of the future - they should do it in three years, shouldn't be doing it now - they are misguided; they should not have gone on the strike."
Admittedly, the studios aren't making much money from online distribution-yet. The writer's contract was expiring (it expired on 31 OCT 07) and in the renegotiations, they demanded residuals from online distribution. Online distribution is going to be huge. Whether in a year or in five, online content distribution will be huge, and the writers didn't want the same thing that happened with DVDs to happen to them again.
The studios and execs are in a similar position to the RIAA in many ways; they're faced with a better education population, I think. A more "networked" present than they are used to, that is, demanding new business models. It will be interesting to see the result of the strike. Certainly, the writers are going to have to compromise a little, but how much, we will have to see. Once more studios start settling with the writers, there will be a sort of peer-pressure to settle, as competitors produce new materials.