Writers Strike Primer: FAQ

I hear that Patric Verrone is nuts. Is he?

No. It turns out that Patric Verrone is quite sane. The WGA brought in doctors from the Mayo Clinic to certify him, and they all left liking him very much, especially the women who found him "dreamy." You and all those you hear from are confusing him with Patrick Valona, who was considered insane in 1843 for believing that fish created the combustible engine. Or perhaps, you are just hearing a smear campaign started by the AMPTP corporations, trying to create dissension within the WGA. Patric Verrone is rational enough to have graduated magna cum laude from Harvard, be on the law review at Boston College and teach law. Of course, his move from that to writing cartoons did get his parents concerned, though when he started giving them really nice gifts, they relented. Some people think him odd because he always wears a business suit in Hollywood, but it turns out that he just has good fashion sense. And looks bad in t-shirts.


I hear that the WGA negotiating strategy is all wrong. Isn't it?

And you would do it differently how?


Well, er, I hear the WGA should bring in new negotiators who could make a deal. Shouldn't they?

If you brought in the Secretary General of the United Nations, even he couldn't make a deal right now, because the AMPTP corporations have walked away from the table. It's a well-accepted fact that it's almost impossible to make a deal with someone who isn't there. The only known case where this has occurred was a tribe in Kenya that communicates by telepathy. However, it completely misunderstood the other side, and got screwed royally, many times over. In the end, the AMPTP corporations using their CIA contacts came in, bought the village and threw the residents out.


I hear the WGA should never have added Animation and Reality to their demands. Wasn't that a bad thing to do?

In fact, they have always been on the table. As in "always." Even before the strike. The AMPTP corporations never minded them then. Only many weeks later, when they decided to try and divide the writers did they suddenly jump up, "O'm'god, look, there are these six issues that we hate, and two are Animation and Reality TV! We demand you remove these, or we will never, ever continue negotiating with you at all, ever." These are not strike issues - but they are very important to some people. ("Some people" is defined as - "people who write Animation and Reality TV.") But important as they are, the Writers Guild will not strike over them. If the AMPTP corporations made a fair offer on New Media tomorrow and left out Animation and Reality TV...the strike would be over tomorrow. It's a non-issue.


I hear that the directors are more mature than writers, which is why the AMPTP corporations are negotiating with them?

Some people believe that third-graders are more mature than writers, but it only appears that way because writers rarely see daylight or other humans very often. The AMPTP corporations are negotiating with directors because it's what they've wanted to do since Day One. You see, directors hate striking for anything. In their entire history, they have struck once, for five minutes. Literally. Actually, it was more a clerical error. How far will directors go to avoid striking, even for something worthwhile? In 1984, Gil Cates negotiated the royalties for home video down by 80 percent, to the whopping 4 cents that artists get today. If you were the AMPTP, who would you rather negotiate with? The WGA was a nuisance that had to be tolerated until the directors were finally available. But now, writers have created so much attention about New Media that even the DGA knows it can get something good, if it tries.


I hear that all writers are rich. Aren't they?

You probably hear this from AMPTP corporate CEOs who make $25 million a year, right? Boy, do I wish you were right about this one. Alas, half the WGA writers in any given year earn no income writing, which tends to defeat the purpose of richdom. The median income of WGA members is about $62,000. But then, the median income between me and Peter Chernin of News Corp., who earned $34 million last year, is just over $17 million. The handful of writers at the very top of their profession are rich. The handful of people at the very top of any profession are rich. The 97% of other writers, they fall into the, "Okay, who ordered the tuna fish sandwich? You owe..." category.


I hear that the studios and networks say they don't make any money from the Internet. Why should they pay writers for it?

Studios and networks also say they don't make any money from TV and movies. According to studios and networks, they all went bankrupt 24 years ago and have been completely out of business since 1987. CBS today makes athletic shoes. Paramount runs a chain of muffler shops. Neither, they say, make a profit. By the way, if you had wandered through the recent Consumer Electronics Show, you would have understood how massive a galvanizing profit these companies (and countless other companies) make from the Internet - right now. It's dizzying. Moreover, if you really want to scare AMPTP companies, say this to them: "I hear you make even more money from "metadata" than almost anything." They'll quickly turn and run. Simply, metadata is the data embedded in New Media. Companies make huge money selling their metadata. (The amount is technically known as "oodles." ) Let's put it this way - how do you think Google became a multi-billion dollar company with a product line they give away for free. Selling metadata. When figuring profit from New Media and the Internet, it counts. No profit from the Internet. Ha, good one.


I hear the AMPTP corporations wanted a strike. Is that true?

If they did, I wouldn't suggest that they promote the fact. There are, of course, some financial advantages to a company during a strike. For instance, they save a lot on parking attendants. Also, they get to fire people and call it "belt tightening." And can drop the really bad deals they made. On the downside, they have to give back several billion dollars in ad revenue to their advertisers because ratings go down. The optimist calls this a wash. The pessimist calls it taking a bath. Either way, they get soaked.


I hear that when...

Sorry, let me interrupt you a moment. You seem to hear really wrong things. Here's a rule of thumb. If you "hear" something, assume it's wrong. If you have a relative who works in the entertainment industry, and he or she tells you something they've heard, assume it's wrong. If you read it in an online blog or column from someone who "heard" something from a reliable source, assume it's wrong. At a certain point, when there is actual news, you will know.


Why do writers deserve residuals? Didn't former MCA head Lew Wasserman once say he wished he got a dollar every time he flushed his toilet?

If Lew Wasserman could have gotten 10 million people to watch him flush his toilet, he would have deserved that dollar. You misunderstand what residuals are. Residuals are not a bonus. Residuals are delayed compensation for promised income. Here's what that means - a script has a high value, but companies cannot pay that amount up front, it's too expensive. So, they reach a contractual agreement with writers: we'll pay you much less than your script is worth so that we can make the show, and then if it's successful and gets shown again and we make additional money, you'll get a small percentage of that, to make up for what you didn't get paid at the beginning. And both sides agree to that. Contractually. People grasp that novelists get paid each time a book they created is sold, that playwrights get paid each time the drama they created is performed, that recording artists get paid each time the CD they created is sold - it's the same for TV and film writers.


No offense, but you make me sick. Why should anyone in the entertainment industry support the WGA striking?

No offense taken. Okay, here's the deal: the AMPTP corporations offered writers zero for original New Media content, zero for New Media streaming, and zero for New Media downloading. Where do you think all future content will go? Good guess! Zero would destroy the Writers Guild, and it would set the pattern for bargaining with the actors and directors. Which would destroy them, as well. And for all other unions - who think they don't have a stake in this - their health and pension benefits are directly determined by what the residual rates are. ("Residuals," remember them?) So, the more writers get for residuals, the higher health and pension are for everyone. Yes, writers are annoying and strike all the time, but every time they strike, it benefits everyone. Most of the benefits you now enjoy, it's because the annoying writers struck for them.


Wow, sorry about the "You make me sick" crack. Why didn't you say this before?

We forgot.


I think TV and movies stink, so I'm glad writers are on strike. Why should I care?

You shouldn't. Read a book. Read a newspaper. Play some hoops. Keep in mind, if you don't like what a network is showing, it was a studio executive who decided what should be put on - and then, without any creative experience, sent notes to the writers telling them how to change it. For those of you who actually watch TV and movies, and have obviously found things you like - isn't it nice that there are writers who are able to overcome the hurdles and turn out such enjoyable, involving, funny, dramatic stories? But ultimately...y'know, you have your own lives to lead. Care about whatever you want that's important to you. That's America. This happens to be important to writers. And to actors. And whoever works in Hollywood, which is perhaps America's biggest, most influential export to the world, America's public face to every corner of the globe. It's your choice if you want to support America, the land of the free, the home of the brave, from sea to shining sea.


Do you know Jessica Alba?

No.

Read more strike coverage on the Huffington Post's writers' strike page.

Comments

[SheaMichael]

To get people to understand the issue, try thinking of it as a shareholder/company issue. Shareholders buy stock, the company uses those dollars to invest in existing parts of the company and to buy new business units. A small percentage of the revenue from the company as a whole flows back to the shareholder as a dividend. Suppose a company announced that they had bought a new business unit - think of it as a new revenue stream - and that shareholders could not get ANY dividends from it. Zip. The company is still using shareholders' money to acquire that new business unit, just giving them ZIP for that use. This hypothetical situation could not exist, because the SEC would intervene and end such a blatently unfair company practice. And it is exactly the position AMPTP is taking on New Media - they take the content from writers et al, generate a new revenue stream, and insist on giving nothing.

[jasond22]

Good article, but you missed 1 point.

When the AMPTP demanded Animation & Reality get taken off the table, they offered NOTHING in return for that (or the other 4 items they wanted off as well).

[WShawn]

Nice piece. I've been on the writer's side since the beginning, but your explanation of how residuals are a form of delayed compensation is a good point. I've read many posts in various message boards from people who think writers should be paid some flat fee once when they write their script, as if they were building widgets or whatever. Something along the lines of "I work at Kinkos. I don't get paid every time someone uses the photocopies I make for their presentations, so why do writers deserve residuals?" I think it boils down to envy and a perception that writing isn't "real" work.

I think Elisberg might be getting average income mixed up with median income, though. He says the median income of WGA writers is $62,000; I thought that was their average income. I'd read that the median income is more like $5,000 a year, meaning half the members make more than $5,000 and half make less than $5,000. As he said, many writers get no income in a year.

If you take all the writers, from the ones who make no income to the multi-millionaires, add up their income and divide by the number of writers you get an "average" income of $62,000. When Bill Gates walks into a homeless shelter of 200 people the average income of everyone in the shelter jumps to $5 million, but the median income stays around $1000.

[Roobaby]

I've enjoyed your writing from the beginning of the strike. But this is a great piece. Thanks!

[Wrong2bRight]

Here's the problem - The WGA represents a bunch already overpaid greedy writers. Sure, the producers are greedy.... that doesn't excuse the writers for being greedy. The stagehands have a harder job. Why aren't they living in multimillion dollar homes? We give more money to people with natural ability. That simply isn't fair. More money should go to the people who need it most not the people who earn it. Our greedy capitalist society should not excuse the greed of a collective effort (even though the WGA is not collectively bargaining, hence Letterman).

Writers make WAY TO MUCH already. What would you rather do, recycle jokes from 1980's sitcoms or work as a recycling/refuse collection technician? Who should make more money?

[travy]

"...it was a studio executive who decided what should be put on - and then, without any creative experience, sent notes to the writers telling them how to change it."

this is the current dynamic that makes the writers less important to the process. they are hired hacks working on crap just like everyone else and should seriously get over themselves and get back to work before they cripple an entire industry and create losses that will never be regained...

[unidentifiedman]

While slagging the DGA you say that they will go a long way to avoid strikes. Is that a bad thing? Given the collateral damage of this strike to countless people, to the economy of several cities and several states, it would seem that avoiding a strike is a good thing. In fact, for many people, the tone of this tome would seem alarmingly tone deaf, and deeply unconscious of their suffering. A strike is a tragedy, no matter how justified, not a celebration or an occasion for endlessly clever repartee.

[thetvdecider]

so only half the wga members work? that's pretty terrible. wouldn't union leadership serve its members better by trying to get work for those who make zero dollars a year? maybe if leadership came to the amptp with some proposals to get more scripted shows on the air at more moderate prices (instead of grabbing everything they can for those already making a pretty good living), the primetime skeds wouldn't be getting gobbled up by cheaper (and better performing) reality product. by the time this strike is over, the number of writers not working will probably be more than half.

(oh and for what it's worth, just like writers, the handful at the top of the tv business are very rich. the rest of us divvy up checks -- and probably don't make as much as most working writers. see you at the lunch counter.)

[thetvdecider]

bob, you falsely state that "the AMPTP corporations offered writers zero for original new media content, zero for new media streaming, and zero for new media downloading."

first of all, writers are already being paid for content sold over the internet. if a movie or television show is purchased via digital download, the writers get a residual payment (in addition to what they got for writing the script in the first place…and in addition to what they get for TV reruns and DVD sales).

second, writers do get paid for projects made specifically for new media – the amount is negotiated by the writer with the producer.

and finally, when everyone was at the table last month, AMPTP offered writers pay for television shows and movies that end up streamed over the internet. unfortunately, the WGA was too concerned about expanding their power by focusing on animation and reality instead of these new media issues that writers went on strike for in the first place.

do you at least have jessica alba's phone number?

[MrsWakely]

Nobody seems to have an answer. Here's one: Tom Hanks diplomatically told the AMPTP yesterday to cut the shit and negotiate in good faith. It's gotten some real attention. And, of course, they listen to Tom, he's one of their gravy trains, and, of course, he's right. The "stars" showed solidarity and shut down the Golden Globes. I have long felt, and written, that SAG is the most powerful union. No stars? No nothing. You can replace writers. Sorry, but true. You won't get "The Sopranos" or "Chinatown" but, let's face it, a monkey could pump out a script for "Two and a Half Men." You can replace directors. Sorry, but it's true. Same formula for above. You can't replace movie and TV stars. Nobody will go see "Wandering Saint," a 125 million dollar epic based on the life of John the Baptist, starring Fred Applebee. Stars, as much as the WGA and the DGA are loathe to admit it, are the coin of the realm. It seems to me, there could be a very strong message sent by a loose confederation of the Tom's, Julia's, Brad's, George's, Reese's and so forth, telling the AMPTP to cut the shit and bargain in good faith. Yes, they'd be putting themselves out there, but:

a. They can afford it.
b. It might work.
c. They can afford it.

[MrsWakely]

Something tells me something less organized than what I'm suggesting is already happening, but, imagine if these folks got together and walked into the office of Peter Chernin and said "Look - enough. You know and we know that this has gone on long enough. We're with the WGA. Period. It will be the same issues for SAG soon enough. You HAVE to make a fair deal. We're the people who are and will be headlining your movies and TV shows. Let's get something done. You're starting to really piss us off."

Maybe I'm crazy, but, do you really think the AMPTP wouldn't pay attention to that? Do you think the AMPTP would respect a federal mediator, like, say, George Mitchell more than they would respect the wishes of their money tree actors? And what's the downside? Come on guys - you let the AMPTP rape your SAG brothers and sisters and pay them scale while you get 20, 25 million upfront and a piece of the gross, you won't go to bat to change THAT - how about you go to bat to at least get everybody back to the chance to get paid a decent wage with decent benefits when we DO get that rare job as an actor, or writer, or director?

Couldn't hurt.

[squooshy]

Agree with a lot.
but whether I agree with every single point or not, it's the funniest entry in a long time.
Thanks! Loved it.

And if Petegrif wants to know exactly what I don't agree with, why, and what I have to support my points and links to 16 relevant articles to prove it - I'll have to get back to him later because I don't have time to deal with that wily, argumentative Brit right now. So he can sit down, have a cup of tea and watch Dr. Who. or go harass some innocent poster from Indiana :)

God save the Queen.

[kjacobsmeyer]

Robert, can you answer this: Who is to blame for the government not putting pressure on the AMPTP to "bargain in good faith"? Is there no power higher than big business (i.e., checks and balances) who can force them to come back to the bargaining table? Even if that means they just glare at Patrick Verrone and doodle penises on a notepad?

[unionworker2]

what is the WGA doing to get back to the table? nothing!!!i think if the WGA stopped crying in their beer and started to to negotiate....