2007-2008 Writers Guild of America strike

By Hurmoth
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2007 Hollywood Strike  

282 members have voted

  1. 1. Who do you support in the strike?

    • The AMPTP
      35
    • The WGA
      140
    • Undecided/Don't Care
      107

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Grand Master

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They didn't want to have to 'settle' and look weak.

It's not rocket science to see they gave practically the same deal to a different union, so holding out has only cost them money that they didn't have to lose. It reeks of stupidity.

Grand Master

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It's not rocket science to see they gave practically the same deal to a different union, so holding out has only cost them money that they didn't have to lose. It reeks of stupidity.

Right, but remember that the vast majority of the population are morons.

Grand Master

Hurmoth

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First Glance at the Deal Summary

Before we begin, here's a caveat: WE ARE NOT LAWYERS. WE ARE NOT BUSINESS AFFAIRS EXECS. WE ARE NOT PROFESSIONAL NEGOTIATORS.

We're a group of volunteer WGA strike captains, and we're posting our reactions to the DGA deal summary that was released today. These are our thoughts alone. They are not official, they don't reflect the WGA's opinion, and frankly, they will probably include a few mistakes.

Which brings us to our second caveat: The DGA deal summary is just that, a summary. It's not the final comprehensive contract. That document, we've been told, is still being drafted by the DGA. So the unclear items in the summary will remain so until the DGA releases the contract.

Since the conversation is raging already, we want to weigh in with our preliminary thoughts. Caveats in mind, here we go:

Issues of Wage Increase, Residual Increase and Healthcare

From what we can see in the summary, there are no rollbacks and some decent increases. As rollbacks on just about everything were such a big part of the congloms' proposal to the WGA, we are, cautiously, optimistic here.

Jurisdiction on Internet Productions

The good: Content that is derivative of something already covered would likewise be covered. In other words, mobisodes, webisodes, whatever-isodes based on something that's already a series or a movie are automatically covered, no matter what the budget.

The bad: We can't tell from the deal summary language if that includes the WGA concept of "separated rights." And there are few concepts more important to writers than separated rights. When you create a character, you have merchandising, sequel and other exploitation rights to that character. Those rights can be a very important source of income -- just ask the creators of a character named Captain Jack Sparrow.

Original Internet-first content

The good: there's coverage for productions costing $15,000/minute, when before there was no coverage at all.

The bad: No minimums are mentioned. We don't know for sure, but that could mean the DGA didn't negotiate any. Also, no mention of separated rights in the summary for Internet-first.

Here is a nightmare scenario: Networks start making inexpensive pilots with a budget of $299,000 and put them up on the Internet (on say, Hulu) to gauge their popularity. It's bargain-basement R&D. If a pilot hits, it gets aired on conventional TV, but pays no residuals, contributes no health & pension, provides no separated rights... provides no protections at all. Fifty years of hard-fought creator rights would vanish.

The ambiguous: Regarding coverage of original content below $300,000 per episode, the summary says: "Original content below the threshold will be covered when a DGA member is employed in the production." That language is unclear. If a single DGA member is employed in a sub-$300,000 production, is the whole production covered (including btl crew)? Or just the DGA member? If it's the whole production, that's a "good." But if it's just one person? That's a "bad."

Electronic Sell-Through (aka downloads)

For the first 100,000 downloads of a TV show, the payment is the DVD rate: 0.3%. After the first 100,000, it rises to .7%

For features, the rate is 0.3% for the first 50,000 downloads and 0.65% thereafter.

The good: It's more than twice what we had before.

The bad: What we had before was based on the miserable DVD formula. WGA, SAG and DGA had all agreed that that number really should be 1.2%, and the unions have actually sued the congloms over it, claiming that the use of the DVD formula for downloads is a misinterpretation of their respective MBAs.

So the 0.7% and 0.65% numbers are still terribly low. In addition, many downloads will not reach the 100,000 or 50,000 threshold, and will generate only the abysmal 0.3%.

It's frustrating to us that the DGA couldn't increase that number out of the DVD range. The DVD formula was based on the notion that "home video" meant a bulky plastic VHS tapes with enormous manufacturing and transportation costs. Those costs decreased dramatically over the years. But no increase in residuals. They decreased dramatically again with birth of DVDs. (You can slip them under a door!) But no increase in residuals. With downloads, the manufacturing cost is exactly zero dollars. And terabytes of storage are getting cheaper by the hour. But we still can't improve that DVD formula? Really?

Distributor's Gross

Payments for EST and, we assume, downloads will be based on distributor's gross, which is much better than producer's gross.

The good: This is what the WGA was asking for, and up until now, the congloms said it was a non-starter.

The bad: How will the accounting be kept transparent? The deal summary doesn't provide any guidance. Until we know how the DGA plans to guarantee that the distributor's gross is an accurate number, we can't know if this is meaningful. ("Net profit" points, anyone?)

Ad-Supported Streaming

For the first 17-24 days, no residual payments at all. After that first run, $600 for six months, up to $1200 for the first year of unlimited streaming. After the first year, 2% of distributor's gross.

The good: 2% of distributor's gross is a meaningful number, again with the caveat that the accounting has to be transparent.

The bad: In the near future -- and in some cases, the present -- rerunning television shows on the Internet will replace conventional reruns. This structure, as described in the summary, to our eyes appears to be the end of television residuals. Whereas a primetime network rerun would be worth $20,000, unlimited streaming on the Internet would be worth only $1200, assuming the episode is kept available for an entire year.

Now, as the companies point out, the current Internet streaming market cannot support a residual level that conventional TV can. It may in the near future, in the distant future, or never. So that's why it seems to us (as the WGA NegComm has said in the past) that the best strategy here is to grant the writer a percentage of real revenue. That is not only the best way to fairly compensate writers, but also a hedge for the companies. If and when the streaming market takes off, flat fees for reuse will be egregiously unfair. The percentage model could, in time, make up for the loss of TV residuals as advertising moves solidly to the Internet.

In years two through infinity, 2% of distributors gross is a meaningful formula. But 2% of what? Even if an episode is kept online for more than one year (and who's to say it would), the demand to view it will be minimal. After a year, the episode will likely be available on a DVD set, and has probably been available as a paid download for some time. The minimal number of streams will mean a minimal ad rate. So enjoy your 2%, writer.

If the ad revenue even in the first year of streaming turns out to be negligible, then giving writers a percentage is insurance that the congloms won't have to overpay. But if something takes off and becomes wildly successful, then a percentage-of-revenue model would reward the writer appropriately.

Sunset Provision

This provision apparently tries to address the fear that the unions will again fall into the DVD trap. It is meant to provide a framework to reevaluate the state of the market and adjust for it in three years.

The problem is, a contract expiring is supposed to provide exactly that structure and that insurance. If you've made a bad deal, you get to revisit it in a few years. We're unsure how the sunset provision is any more insurance or provides any more "teeth" than the ordinary process of a contract expiring. And, of course, we're concerned that all the assurances that the DVD deal was temporary were, in the end, empty promises.

In conclusion... There are some genuine gains here, some issues that need clarification and some points of grave concern that threaten to drastically undercut writers' compensation. The DGA deal, as we understand it, is neither reason for celebration nor mourning. Writers (and actors!) must resist the urge to get entrenched in a position on this too quickly. Parts of this deal will be the basis for a meaningful resumption of talks with the WGA, parts of this will not. Let's discuss it, let's debate it, but let's keep it civil and understand that the deal that gets everyone back to work will be the one that no one loves, but everyone can live with.

Grand Master

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The one thing I don't like about the WGA's response is that they were so set on new media, and how important it was and how many popular it was going to be. But ...

So the 0.7% and 0.65% numbers are still terribly low. In addition, many downloads will not reach the 100,000 or 50,000 threshold, and will generate only the abysmal 0.3%.

So they don't really believe that new media is going to be as popular as they have been portraying.

Grand Master

Hurmoth

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The one thing I don't like about the WGA's response is that they were so set on new media, and how important it was and how many popular it was going to be. But ...

So they don't really believe that new media is going to be as popular as they have been portraying.

I noticed this as well, but I don't know that I would read anything into that. I'm wondering if what they meant was that at this juncture downloads won't reach that many, but in the future it will (say 2-3 years down the road).

Grand Master

Rappy Veteran

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We told you the other day about the studios ending the contracts of several writers and producers. And since it's hard to keep track of who is and and who is out when it comes to their TV deals, The Futon Critic has the scoop on which people still have deals at the networks, along with updates on which contracts have been canceled.

The names that immediately stick out to me for terminated producers are Hugh Jackman and John Palermo (CBS' Viva Laughlin), along with Journeyman producer Kevin Falls. It's interesting to see who has multi-year, seven figure contracts (such as Back To You producer Abraham Higginbotham) and who has three year, eight figure deals (that would be Anthony Zuiker, the guy behind the CSI shows over on CBS). Chuck Lorre's (Two and a Half Men) details haven't been released, but it's great to see that Dan Staley and Rob Long has a new project coming up (hopefully, at some point).

It's a big list, and kinda inside TV-ish, but it's interesting.

Grand Master

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I noticed this as well, but I don't know that I would read anything into that. I'm wondering if what they meant was that at this juncture downloads won't reach that many, but in the future it will (say 2-3 years down the road).

Problem with that reasoning is that you are giving the exact reason why the AMPTP wanted to wait on new media.

Sure, they wanted to keep ALL of the money in the meantime, but they would have given the rate they gave to the DGA without an argument.

Grand Master

Hurmoth

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Problem with that reasoning is that you are giving the exact reason why the AMPTP wanted to wait on new media.

Sure, they wanted to keep ALL of the money in the meantime, but they would have given the rate they gave to the DGA without an argument.

Tis true. Well, this was from the perspective of only two or three guys, so hopefully the people who are on the negotiating committee don't view it that way.

Grand Master

Hurmoth

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WGA Evaluation of DGA Deal Total Value

The WGA has run an analysis of the value of the DGA deal summary, contrasting it to the value of the deal last offered to the WGA by the congloms on December 7th.

It also includes a side-by-side analysis of each provision of the DGA deal summary against both what the congloms last offered us, and what we last proposed to them. The details were posted on wga.org yesterday.

Go here to see the full breakdown -- it answers a lot of questions -- but in brief, the overall dollar value is this:

AMPTP offer to WGA on December 7th:

$23.1 million dollars over 3 years

AMPTP/DGA deal summary value:

$32.1 million dollars over 3 years

WGA last proposal to AMPTP:

$122.5 million over 3 years.

Grand Master

Ajapi

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Hey guys, I don't know much about this strike. Hell, I'd read the 14 pages of this thread and learn about it, but I don't really have the time :/

Though it would be ideal, I won't ask any of you to give me a summary of the situation, so I'll keep my request simple: is there any sort of estimate as to when Gossip Girl and The Big Bang Theory will start again? Haha my girlfriend is Gossip Girl addicted, and I find The Big Bang Theory to be refreshingly geeky.

Thanks in advance.

Grand Master

Mathachew Veteran

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Hey guys, I don't know much about this strike. Hell, I'd read the 14 pages of this thread and learn about it, but I don't really have the time :/

Though it would be ideal, I won't ask any of you to give me a summary of the situation, so I'll keep my request simple: is there any sort of estimate as to when Gossip Girl and The Big Bang Theory will start again? Haha my girlfriend is Gossip Girl addicted, and I find The Big Bang Theory to be refreshingly geeky.

Thanks in advance.

They'll start when most other postponed shows will start, which is still unknown. At least you didn't start a new thread asking this question :)

Grand Master

Ajapi

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They'll start when most other postponed shows will start, which is still unknown. At least you didn't start a new thread asking this question :)

Hey, thanks. So the duration of the strike is indefinite? Geez, I thought there would have been a projected date for its cease.

Grand Master

Hurmoth

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Hey, thanks. So the duration of the strike is indefinite? Geez, I thought there would have been a projected date for its cease.

Pretty much. The strike could be over as soon as later this month or months from now. We really don't know, although progress has been made with regards to the DGA's contracts.

Grand Master

Hurmoth

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Lionsgate, Marvel Studios Sign Interim Deals

The following two WGA press releases were sent to media today to announce that Lionsgate and Marvel Studios have both signed interim agreements with the Writers Guild.

LIONSGATE SIGNS INTERIM AGREEMENT WITH WRITERS GUILD

LOS ANGELES ? Leading independent filmed entertainment studio Lionsgate is the latest company to sign an interim agreement with the Writers Guild of America. The company is one of the largest independent producers and distributors of motion pictures, television programming, home entertainment, family entertainment and video-on-demand content.

The agreement is similar to the deals the WGA has recently announced with United Artists, The Weinstein Company, Worldwide Pants, Spyglass Entertainment, MRC, Jackson Bites, Mandate Films, and Sidney Kimmel Entertainment.

?We are pleased Lionsgate has joined the growing number of companies that have signed interim agreements with the Writers Guild,? said Patric M. Verrone, president of the Writers Guild of America, West, and Michael Winship, president of the Writers Guild of America, East, in a joint statement. ?Lionsgate is considered a leader in the industry, and its signing an interim agreement again confirms that it is possible for both writers to be compensated fairly and respectfully for their work and for companies to operate profitably.?

Upcoming Lionsgate films include Rambo, The Eye, Tyler Perry?s Meet the Browns, Forbidden Kingdom, My Best Friend's Girl, Punisher 2, Saw 5, and The Spirit. Upcoming television series include Weeds (Showtime, fourth season), Mad Men (AMC, second season), and Fear Itself (NBC, debut season).

WRITERS GUILD OF AMERICA AND MARVEL STUDIOS ANNOUNCE INTERIM AGREEMENT

LOS ANGELES ? Marvel Studios, a subsidiary of Marvel Entertainment, Inc., and the Writers Guild of America (WGA) announced today that they have reached an interim comprehensive agreement that will put writers immediately back to work on the Marvel Studios development slate. Terms of the agreement were not disclosed.

?We?re very excited about our summer releases, Iron Man and The Incredible Hulk, and look forward to resuming work with writers on our future projects including Captain America, Thor, Ant-Man, and The Avengers,? said Marvel Studios Chairman David Maisel.

?Marvel Studios? signing of an interim agreement with the Writers Guild is more good news for our membership,? said WGAE President Michael Winship and WGAW President Patric M. Verrone. ?Marvel is committed to fairly compensating their writers and now they can move forward with their planned production schedule.?

Marvel Studios recently launched its independent live-action film studio to develop, produce, and fully finance Marvel movies, which will include two of this summer?s most anticipated releases ? Iron Man and The Incredible Hulk. Directed by Jon Favreau, Iron Man will be released by Paramount Pictures on May 2, 2008, and stars Robert Downey Jr., Terrence Howard, Jeff Bridges and Gwyneth Paltrow. The Incredible Hulk, which will be released by Universal Pictures on June 13, 2008, is directed by Louis Leterrier and stars Edward Norton, Liv Tyler, Tim Roth, and William Hurt. In cooperation with other studios, Marvel previously produced a long succession of hits, including the Spider-Man, X-Men, and Fantastic Four franchises, Ghost Rider, and Daredevil.

The WGA recently entered into interim agreements with The Weinstein Company, United Artists, Lionsgate, Worldwide Pants, Spyglass Entertainment, MRC, Jackson Bites, Mandate Films, and Sidney Kimmel Entertainment.

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