Shut Down the Town?

I was having an email exchange yesterday with a dear friend and successful producer who describes herself as "very anti-strike-of course as a middle child and producer, my job has always been mediator."

I'm a middle child myself, and I, too, am a pacifist-mediator at heart. So I told her "trust me when I say, no one likes or wanted a strike that I know of...except maybe one person I know who's an exec at Sony." But he's not a big fan of writers, anyway. A strike is always the last resort.

Anyway, my producer/friend's feeling was that "they should be forced to work it out -- compromise and settle the thing so people can get back to work." I couldn't agree with her more, but I kept wondering who she meant by "they?"

I hated to dash her hopes as I think this could be a long work stoppage, because I believe the studios have wanted this strike for some time now. Case in point, check out yesterday's LA Times' cover story, "Strike About to Cost Jobs," about how the studios are cleaning house of many of their TV production/development deals. "My friend," the executive at Sony I referred to, told me at a dinner party at his house in June that the studios wanted a strike, "if only to get out of many of their development deals, because it's cheaper than paying to get out of some of these expensive arrangements." The employment contract that studios have with talent has a provision (or an escape clause) known as force majeure that allows them in a crisis such as a strike to suspend and terminate deals. So they could potentially shut down a good portion of the town, where an estimated 1.3 million jobs are connected to the film industry, because it's cheaper for them than paying out their expensive production deals? My question is if these deals were so bad, why'd they make them on in the first place?

The WGA and AMPTP have been meeting since July, and the networks/studios (represented by Nick Counter of the AMPTP) have not given an inch on any of the WGA's real demands unless you count a fraction of a centimeter last weekend, days before the announced strike on Monday, Nov. 5th. To the writer's credit, their proposals are the basis of the WGA's negotiations, not the AMPTP's. Contrary to all of the hype in the media....and not to be conspiratorial, but let's face it the WGA doesn't own NBC, GE does, so if the facts aren't exactly trickling down in the fairest or most impartial light towards the writers, do you really have to wonder why?

I was heading out to a picket line when my friend and I began our exchange so I didn't have time to get into all the issues. So I did my best to address one point, specifically about the DVD/download situation. In 1985, the writers made a really bad deal with regards to video cassettes. I know we're talking DVDs now, but it's all relative. Remember 1985? Cable was in its infancy, and everyone watched 13 channels because that's really all there were to watch, and all of those channels were free! Now, I realize this shows a lack of vision on all of our parts (both writers and actors), but as everything was free and plentiful, the idea of paying to watch a video/re-run of your TV old show was not really a concept the WGA and SAG thought would take off, and then of course, movies followed suit. Clearly, we were all naive.

The deal that the writers made in 1985 meant they would get four cents for every video cassette sold. How'd they come up with four cents when the writers were getting two-and-a-half cents (out of every dollar) per airing on network TV? Well, the studios asked the writers to take a pay cut in order to grow this fledgling market. The writers as they were eager to help to expand the home video business agreed to cut their residuals on video sales by 80 percent. They agreed to this with the understanding that once home video was a thriving, profitable market, the studios would then give back what the writers had given up. Hmm...kind of remind you of the cable deal we made in the '80s?

Well, that was 22 years ago, VHS cassettes have long since given way to DVDs, and sales have soared, but the 80 percent pay cut is still in place. A DVD on average costs about $19.99, and in 2007, the writers still only get four cents. Keep in mind there wouldn't even be any DVD' to sell, be it Seinfeld or Shakespeare in Love if not for writers, and they haven't gotten a pay increase in 22 years!? What are they, teachers?

But wait the absurdity doesn't end there...let's talk about the internet, and iTunes and any download service provider that have allowed studios to digitally distribute their products more efficiently than ever (and it's easy to track too!), no manufacturing costs, no shipping costs, no need to warehouse anything (sorry, I still miss Tower Records...records, that says it all!), no physical product what so ever! And the studios want to pay the writers the same rate for these downloads as they pay for DVD residuals? That's right, a whopping four cents....despite this huge cost savings!

And the fun just doesn't stop, websites like NBC.com that I mentioned yesterday, and I've since learned about Hula's website, well, you can go on to either of them right now, and watch entire episodes of your favorite TV shows for free! (But please, don't log-on until this is all resolved. Thanks!) Even though the studios sell ads on these websites and thus, earn money off of these shows still.....they're estimated to bring in 4.6 billion dollars over the next three years, they are refusing to pay the writers any residuals at all. Now, that's fair negotiating.

And why? How can they possibly get away with this? Well, they claim that it's for promotional purposes only. Promos used to be considered a 15 or 30 second commercial to get the audience "to stay tuned for next week's exciting episode"....not next week's ENTIRE episode! And if studios have their way the 80 percent pay cut will not only apply to downloads, a 100 percent pay cut will apply to streaming video, too! And it's not only writers that are affected, but actors, directors, and anyone who relies on residuals to pay their bills, and to fund their pension and health, we're all affected. And can you imagine what will happen when TV and the internet merge and become one? Hmmm...do you think studios will be magnanimous and pay residuals based upon the current established TV rate when they can pay you the bargain basement internet rate? Come on, is that a trick question?

The deal that was made in 1985 meant that the studios would retain more than 80 percent of all gross sales of video cassettes/DVDs, and that's still the way it is! All writers, actors, directors (unless they as "stars" and can negotiate an additional percentage upfront) collectively share the remaining 20 percent and have for 22 years.

Tell me, that's fair negotiating?! I know I explained yesterday about using the word "fair" and how inappropriate of a word it is to use in the corporate world. But maybe the question, we should all ask ourselves, is any of this right? Would you ask a teacher, a bus driver or even your plumber, to live on wages based upon a pay scale established in 1985 in 2007? No, you wouldn't, and besides your plumber would walk, so why would you ask that of writers?

In solidarity and hope... still,

Susan Savage

Actress,

Screen Actors Guild

National Board member

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

Comments

[Novista]

I think the people who implore writers about quality have NO idea about the business of writing.

If memory serves, Mark Twain once said "An editor never likes the taste of anything until he pisses in it first."

A writer might have done the most creative and challenging script ever and if a decision maker says NO, that's the end of it. Writers write, they seldom have a say in what gets made.

Jim Jarmusch once said, "If a suit tried to tell me how to make a movie, I think I'd kneecap him."

Remember the bloke who greenlighted "Lost" which premiere had the highest watcher number ever, as I recall. His reward: Disney sacked him. Even life toward the top of the food chain can be hard ...

[StephieL]

When the writers went out on strike back in 1988, the strike lasted for eight weeks. After it ended, nine percent of the TV audience had tuned out TV permanently and embraced other forms of entertainment.

If the writers strike continues through the first two to three months of 2008, by the time the strike is settled (after the Screen Actors Guild and Directors Guild of America threaten to hit the picket lines with the writers), TV and motion picture studios may see a double-digit erosion of the audience as more and more Americans tune out TV, and turn to other forms of entertainment which weren't around in 1988, like the Internet, more sophisticated videogames, DVD's, MP3's and CD's.

I look for videogames to see a huge sales increase, especially since the prices of the major video game consoles -- Wii, XBox360 and PS3 -- have dropped dramatically in recent months, while books and CD's might see only a slight increase in sales.

[eanderso]

I'm tired of all of the people who post comments about how there's nothing good on television anyway (although I partially agree re: movies --- most of the really great films I've seen lately have been indies like "The Darjeeling Limited"). Here is my list of some of the really great work (in my opinion) that's appearing on television these days:

The Office
30 Rock
The Riches
Mad Men
Dexter
Big Love
Flight of the Conchords
Entourage (most of the time)
My Name is Earl
Real Time with Bill Maher
The Daily Show
The Colbert Report
The Boondocks
Reaper
The Big Bang Theory
Supernatural
Men in Trees
Dirty Sexy Money

I'm sure there will be some disagreements about my choices, but to me, there's a glut of great stuff on television these days.

In fact, between Tivo and a dual tuner HD DVR, our movie viewing has slipped because there are so many good shows on television to watch.

I would argue that part of the reason that there's been a slide in attendance at the movies is because people don't want to pay $7+ for a product that's inferior to what they can see at home.

[LunaNik]

Since I live on a fixed income (federal disability), I'm somewhat sympathetic to the plight of the underpaid.

That having been said, I have not seen much quality writing coming from Hollywood. There hasn't been a truly funny sitcom since Will & Grace. While the hour-long dramas seem to fare better (CSI, Law & Order, House), the rest of the TV schedule is a vomitorium of reality shows.

Movies? Really. Can we stop with the horrible remakes of classics, please? Pretty please? For example, while I generally like Johnny Depp, no one could ever top Gene Wilder's Willy Wonka. Why did they bother to try? Every single remake of a classic I've seen has sucked, from Psycho to Diabolique.

Then there's the plethora of "how many different ways can we torture and kill people" horror movies. Enough, already, with the likes of Saw and Hostel.

It's long past time for Hollywood to embrace a new golden era. Stop writing pap and passing it off as art. In the real world, those who do substandard work don't keep their jobs for very long. Hint, hint.

[ShanghaiGuy]

"Would you ask a teacher, a bus driver or even your plumber, to live on wages based upon a pay scale established in 1985 in 2007? "

I believe people earning minimum wage right now are earning the same as something like 1965 (after adjusting for inflation).

Where you live that might not include teachers and plumbers, but could include people like janitors, cooks, delivery people, etc.

[darker]

Sure, the NANNY STATE FOR THE RICH demands that every one else make no money at all.

Surprised?
CORPORATE WELFARE QUEENS rule!
The rest of America pays for their greed.

[skibum]

Chris Anderson's the long tail is going to play out here, and people are going to be uncomfortable in this time of uncertainty of how to get paid. I just came back from the Boston VON conference and the trends are not good for traditional media. People are steering away from TV, and this writers strike for some will be what turns occasional TV viewers to permanent internet entertainment video snackers.

People are trying to figure out ways to monetize the web but right now this is a game for eyeballs, and who can last the longest on the cash reserves in the bank. CEO's from all walks are wondering and confused and some just don't get it that:

People don't need big budget productions to be entertained.

As an editor this is not the best thing to say but, watching regular TV is a pain in the ass. Even time shifted and tivo'd doesn't compare to options available today on the internet.

Steve Morris said that the success of Facebook was due to the fact that users are allowed to take as much as they want for free and then come back for more. Try StumbleUpon for a week then try to go back to regular TV to entertain yourself ...

If i was a writer i would be creating my own content for the web, maintaining full rights on everything, let people watch for free but then sell DVDs of shows later, and extra content to paid subscribers.

This is a competition for eyeballs and you all are giving the internet video business a HUGE boost at the WORST time for yourselves.

[MelissaH]

Rock on in solidarity. The greed must stop and fairness must prevail. When residuals on liner notes are paid at a higher rate than entire scripts, something stinks. Even those of us who aren't guild members or employed by the entertainment industry must look at this example of David vs Goliath as foreshadowing of the way things seem to be moving in this country. You make bad decisions for a corporation, and you get rewarded by a big golden parachute, stock options, and meanwhile, cut health benefits and salaries for the little guy. Let's all support the WGA --not only because it's the right thing to do, but because they represent, on many levels, the typical plight of everyday, hardworking folks. We're mad as hell and we're not going to take it anymore! oh wait, a writer wrote that...where can I send my residual check?

[kellygrrrl]

what do you expect in a nation
where healthcare is controlled by a handful of CEOs who nothing about medicine
...where we pay our educators sh!t and thrown millions at illiterate immoral athletes
...where talent does not make a star, marketing does

we are a nation that values profit over people
we are a nation that values quantity over quality.

Now we will all need to suck it up and tune into Reality Programming:
"BlackWate­rBoarding:
and
"SoprnosDy­nastyDalla­s : The Bush Family"

[MelissaH]

Rock on in solidarity. The greed must stop and fairness must prevail. When residuals on liner notes are paid at a higher rate than entire scripts, something stinks. Even those of us who aren't guild members or employed by the entertainment industry must look at this example of David vs Goliath as foreshadowing of the way things seem to be moving in this country. You make bad decisions for a corporation, and you get rewarded by a big golden parachutte, stock options, and meanwhile, cut health benefits and salaries for the little guy. Let's all support the WGA --not only because it's the right thing to do, but because they represent, on many levels, the typical plight of everyday, hardworking folks. We're mad as hell and we're not going to take it anymore! oh wait, a writer wrote that...where can I send my residual check?

[larry278]

The blogs & the comments on the blogs about the writer's strike are more interesting & exciting than the writer's works shown on the cinema & TV.

[TommyMcCarthy]

OOOHHH! Now there's one of those questions you dont want to ask the public at large if you're looking for thier support. Union scale in MY trade just made it back to 1979 level early this year......­........tm

[realitytrumpsbull]

I think the strike might be the best of all
possible worlds for all involved. Hollywood
at-large needs to reinvent itself, creatively
bankrupt, depending on Angelina Jolie's natural
endowments and rounds-per-minute for ticket
sales, or political thrillers that degenerate
into propaganda, or or or.
Make a modern version of Grapes Of Wrath,
or something like that. Tell me a STORY,
a good'n. Not just some crap. Barring
that, stay on strike or whatever.

[SamThornton]

Myopic predatory capitalism has become the strategy driving most corporations in today's American marketplace. In this instance management seems to be relying on their ability to retain market share with reruns and in any event quickly reclaim any losses when things spool back up.

I'm wondering if that's actually going to prove a viable strategy given the 200-400 channels and other entertainment outlets now available.

One analogy: like an increasing number of news consumers, I now no longer watch US network news and cable news only sparingly, preferring the BBC and overseas internet news outlets.

At some point US entertainment outlets are going to face the same eroding base, predicated on short-sighted business practices. Stubbornness in settling a talent strike is one practice likely to bring that day closer.

It wouldn't be the first time an American industry shot itself in the foot and got the other one stomped on by foreign competition.

[CaptainLiberty]

With film production budgets in the $50 to $100 million range and an almost equal amount to be spent on advertising, the last thing a studio wants to do is rush a film into production before it's ready.

But it's happening again. Because of the anticipated writers' strike several studios are reported to have pushed writers to complete scripts before the WGA contract expiration date.

This means no last minute rewrites, punch up sessions, problem page revisions during production (unless done by someone not in the WGA -- and if they're not, why not?) and a hundred other tweaks that normally go on during the shooting of a film.

The studios did this the last time the writers' contract was expiring and, a year later when these films were released, a good number of them went over like the proverbial lead balloon.

Hundreds of millions of production funding and ad money wasted. Why? Because they were not fully realized on the page.

I read that the official estimate of the cost of the last strike was about a Half Billion dollars. The estimate for how much it would have cost the studios in general had they agreed to the writers' demands, about $50 million. One tenth of the overall losses.

This does not make good business sense to me and I'm looking for all the studios to suffer serious loses later next year, both in the feature film arena and in television, as a direct result of their handling of this strike.

In Hollywood it appears ego often rules good sense.