30 November 2007

Two Steps Forward, One Step Back

Well, the press blackout has been lifted, and the news is . . . well, it's not good. Deadline Hollywood Daily and The Hollywood Reporter are reporting that the talks are moving slowly, and that the WGA is deeply unimpressed the AMPTP's new proposal. Apparently, negotiation sessions are brief, and the two sides spend a lot of time not even in the same room, mulling things over, with agent Bryan Lourd holding things together with twine and duct tape.

The WGA sent out an email to its members calling the AMPTP's proposal a "rollback". Here's the text of that email:

To Our Fellow Members,
After four days of bargaining with the AMPTP, we are writing to let you know that, though we are still at the table, the press blackout has been lifted.

Our inability to communicate with our members has left a vacuum of information that has been filled with rumors, both well intentioned and deceptive.

Among the rumors was the assertion that the AMPTP had a groundbreaking proposal that would make this negotiation a "done deal." In fact, for the first three days of this week, the companies presented in essence their November 4 package with not an iota of movement on any of the issues that matter to writers.

Thursday morning, the first new proposal was finally presented to us. It dealt only with streaming and made-for-Internet jurisdiction, and it amounts to a massive rollback.

For streaming television episodes, the companies proposed a residual structure of a single fixed payment of less than $250 for a year's reuse of an hour-long program (compared to over $20,000 payable for a network rerun). For theatrical product they are offering no residuals whatsoever for streaming.

For made-for-Internet material, they offered minimums that would allow a studio to produce up to a 15 minute episode of network-derived web content for a script fee of $1,300. They continued to refuse to grant jurisdiction over original content for the Internet.

In their new proposal, they made absolutely no move on the download formula (which they propose to pay at the DVD rate), and continue to assert that they can deem any reuse "promotional," and pay no residual (even if they replay the entire film or TV episode and even if they make money).

The AMPTP says it will have additional proposals to make but, as of Thursday evening, they have not been presented to us. We are scheduled to meet with them again on Tuesday.

In the meantime, we felt it was essential to update you accurately on where negotiations stand. On Wednesday we presented a comprehensive economic justification for our proposals. Our entire package would cost this industry $151 million over three years. That's a little over a 3% increase in writer earnings each year, while company revenues are projected to grow at a rate of 10%. We are falling behind.

For Sony, this entire deal would cost $1.68 million per year. For Disney $6.25 million. Paramount and CBS would each pay about $4.66 million, Warner about $11.2 million, Fox $6.04 million, and NBC/Universal $7.44 million. MGM would pay $320,000 and the entire universe of remaining companies would assume the remainder of about $8.3 million per year. As we've stated repeatedly, our proposals are more than reasonable and the companies have no excuse for denying it.

The AMPTP's intractability is dispiriting news but it must also be motivating. Any movement on the part of these multinational conglomerates has been the result of the collective action of our membership, with the support of SAG, other unions, supportive politicians, and the general public. We must fight on, returning to the lines on Monday in force to make it clear that we will not back down, that we will not accept a bad deal, and that we are all in this together.

Patric M. Verrone, President, WGAW
Michael Winship, President, WGAE


Yikes. They do not sound happy. It seems like my initial speculation that the AMPTP might be on the verge of an early buckle was incorrect, as there don't seem to be any big victories here. This sounds pretty much like the kind of compromise deal that might get done after months of striking has weakened the positions of both sides. I doubt very seriously it's actually a "rollback" -- what would be the point of offering your initial position, and then offering less? -- but it doesn't sound much.

So, the question becomes: Did the AMPTP come back to the table because they thought they were winning, or is this all part of a game in which they increase their offer incrementally in hopes that the writers accept something marginally less than the absolute maximum the AMPTP is prepared to give? I can't imagine they actually thought that offering the same thing again so quickly was actually going to work; writers have been loud, unified, and they've been winning the PR war handily. In fact, that sounds like a deliberate slap in the face, if not negotiation in bad faith, and either indicates that the AMPTP is totally clueless about consensus among their striking workers, or is just a collection of collossal assholes. It's kind of funny, but one hopes for the latter, because at least it means they have room to give, and a deal could still get done once they unclench. If it's the former -- negotiation not in bad faith but from bad information -- these talks will like collapse, just like the ones that ran from last summer through early this months, because no one's felt the pain yet, and no one has the incentive to make massive compromises.

The stage-hands strike ended yesterday, and Broadway, unlike Hollywood, is getting back to business. One wishes that this could be viewed as an optimistic sign, but I think it has essentially no effect or use as a bellweather for these talks; the issues were much simpler, the amounts of money much smaller, and the position of the union ultimately much stronger in this one.

Here's a depressing paragraph if ever I read one:

"[American] Gladiators," hosted by Hulk Hogan and Laila Ali, will replace freshman dramedy "Chuck," which recently was picked up for a full season but only has a few more episodes in the can because of the strike. "Chuck" is scheduled to air original episodes through Dec. 3. No decision has been made when and where the show's remaining couple of new segments will run.


NBC is adding three hours of reality programming coming in January 2008, including a revamped "American Gladiators" to replace their best new show, "Chuck". I used to love "American Gladiators". I also used to wear Wolverine jockey shorts and suck on Otter Pops. Sigh.

I was all optimistic. Now, I think there's a strong chance this stuff falls apart before any actul progress is made.

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