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The companies have thus far refused to address this proposal, and have instead proposed that online sales follow the same formula as DVD sales. With regard to streaming, the companies have proposed that so-called "promotional" streaming-- including the streaming of a program in its entirety and even for profit via advertising or other means-- not pay ''any'' residuals to the writer or writers whatsoever.
The companies have thus far refused to address this proposal, and have instead proposed that online sales follow the same formula as DVD sales. With regard to streaming, the companies have proposed that so-called "promotional" streaming-- including the streaming of a program in its entirety and even for profit via advertising or other means-- not pay ''any'' residuals to the writer or writers whatsoever.


Both of these proposals have been rejected by the WGA.
Both of these proposals have been rejected by the WGA and are cited as evidence that the studios "(want) to shut down rather than reaching a fair deal" <ref>http://www.showbuzz.cbsnews.com/stories/2007/11/02/tv/main3443446.shtml</ref>


==Strike logistics==
==Strike logistics==

Revision as of 05:46, 7 November 2007

Signs from the striking writers

The 2007 Writers Guild of America strike is a strike by both the Writers Guild of America, East (WGAE) and the Writers Guild of America, west (WGAw) that started on November 5, 2007.[1] The WGAE and WGAw are two labor unions that represent film, television, radio, and new media writers working in the United States.

The strike is against the Alliance of Motion Picture and Television Producers (AMPTP), a trade organization that represents the interests of American film and television producers. Over 12,000 writers are affected by the strike.[2] The last such strike was the 1988 Writers Guild of America strike; it lasted 22 weeks, costing the American entertainment industry an estimated 500 million dollars.[3]

Reasons for the strike

Every three years, the Writers Guilds negotiate a new basic contract with the AMPTP by which its members are employed. In the 2007 negotiations over this contract, an impasse was reached and the WGA membership voted to give its board authorization to call a strike, which it did on Friday, November 2 with the strike beginning the subsequent Monday.

Among the many proposals from both sides regarding the new contract, there are several key issues of contention including DVD residuals, union jurisdiction over animation and reality programs, and perhaps most importantly, "new media".

DVD residuals

Background

In 1985, the Writer's Guild struck over the home video market, which was then small and primarily consisted of distribution via video tape. At that time, the entertainment companies argued that home video was an "unproven" market, with an expensive delivery channel (manufacturing VHS and Betamax tapes). Movies were selling in the range of $40-75 dollars per tape, and the writer's guild accepted a formula in which a writer would receive a small (.3%) percentage of the first million of reportable gross (and .36% after) of each tape sold as a residual.

Over the years, as manufacturing costs for video tapes came down dramatically and the home video market exploded, writers realized that this formula may have been a mistake. By the mid-1990s, DVDs replaced the more expensive VHS tapes and eventually became less expensive to produce, market and purchase, but the previous VHS home video residual formula continued to apply.

At present, the home video market is the major source of revenue from the movie studios. In April of 2004, the New York Times reported the companies made $4.8 billion in home video sales vs. $1.78 billion at the box office.[4]

Current proposals

WGA members claim that a writer's residuals, or profits made from subsequent airings or purchases of a program, are a necessary part of a writer's income that is typically relied upon during periods of unemployment that are common in the writing industry. The WGA has requested a doubling of the residual rate for DVD sales, which would result in a residual of approximately eight cents (up from four cents) per DVD sold.[5]

In negotiations, the AMPTP has refused to consider changing the formula. Their rationale has been that DVD sales are necessary to offset rising production and marketing costs [6]. They have further insisted that the current DVD formula be applied to residuals in New Media (see below).

The WGA has said via press release that the DVD proposal was completely removed by the WGA from the table on November 4, 2007, the final night before the strike began. However, WGA President Patric M. Verrone later wrote that the membership exhibited "significant disappointment and even anger" when they learned of this, and as the removal was contingent on further concessions by the AMPTP (which did not happen), "all bets are off" on the withdrawal of the DVD proposal.

New Media

Perhaps the most critical issue for the negotiations is that of "New Media", which includes Internet downloads, IPTV, streaming, and other "on-demand" online distribution methods, along with video on demand on cable and satellite television operators.

Background

Currently, the WGA has no arrangement with the companies regarding the exploitation of content online, including Internet sales (also known as "digital sell-through", such as via the iTunes Store and Amazon Unbox) where the consumer purchases a copy of the program online, or via online streaming where the consumer watches the program as it streams into their computer (typically without storing the video for future re-viewing).

There is a consensus that New Media will likely eventually supplant DVD (and older technologies such as VHS) in the home video market as the primary means for distribution. As in the mid-1980s, the companies have argued that New Media represents an unproven and untested market and have asked for additional time for study. However, feeling resentment from the 20-year-old home video deal and unwilling to make similar concessions in a so-called "new market" yet again, WGA members have been adamant that whatever deal they make for New Media, it can not resemble the DVD formula.

It is for this reason that New Media has been dubbed by some WGA members, including writer-director Craig Mazin, "the One Issue" that matters.[7]

Current proposals

The WGA has proposed that writers receive 2.5% of distributor's gross for new media sales and distribution.

The companies have thus far refused to address this proposal, and have instead proposed that online sales follow the same formula as DVD sales. With regard to streaming, the companies have proposed that so-called "promotional" streaming-- including the streaming of a program in its entirety and even for profit via advertising or other means-- not pay any residuals to the writer or writers whatsoever.

Both of these proposals have been rejected by the WGA and are cited as evidence that the studios "(want) to shut down rather than reaching a fair deal" [8]

Strike logistics

The current WGA contracts with AMPTP both expired on October 31, 2007.[9] Talks broke down the night of the 31st over the new-media issue. During a meeting on November 1 at the Los Angeles Convention Center, which was attended by 3,000 WGAw members, the strike was authorized by the general membership in support of the negotiating committee.[10] On November 2, the WGAE and WGAw announced that the strike would begin at 12:01 AM on November 5th.[11]

On November 4th, the WGA withdrew its DVD proposal, but the Companies still insisted on a lack of residual for new media.[12]

Thus, on November 5th, nearly 3,000 WGAw members, plus additional SAG and Teamsters members, picketed or refused to cross the picket lines at fourteen targeted studios.[13] Additionally, many more Writer's Guild of America East picketers marched in locations in New York including Rockefeller Center. Picketing is scheduled to continue throughout the strike period.

Response

Producers

In anticipation of the strike, production companies accelerated production of films and television episodes in an effort to stockpile enough material to continue regular film releases and TV schedules during the strike period.[14][15][16] A list of 300 high-priority film projects reportedly circulated around talent agencies in accordance with this effort. See the reported list here.

Politicians

Senators and 2008 Democratic presidential candidates Barack Obama, Hillary Clinton and John Edwards each issued statements of support for the writers.[17]

Impact on television

Further information: [[:2007-08 United States network television schedule]]

Late night comedy shows such as The Late Late Show with Craig Ferguson, The Tonight Show with Jay Leno, Late Night with Conan O'Brien, Last Call with Carson Daly, Jimmy Kimmel Live, The Late Show with David Letterman, The Daily Show with Jon Stewart, The Colbert Report and Saturday Night Live have begun airing reruns immediately.[2]

Mid-season shows, such as 24, Dirt and The Riches, began production after most other TV shows, so they have completed fewer episodes to date. As a result, there will be fewer episodes to air for each of these shows. There is also the possibility that 24 may not even air the episodes that are finished, due to the show's long-standing practice of airing non-stop full seasons. ABC will have to make a decision regarding whether to air Lost as a non-stop full season after the strike is resolved, or air the few episodes that are finished while putting the rest of the unfinished season on an indefinite hiatus.

For shows without full-season pickups such as Moonlight and Cane, production on the first batch of shows has been completed.

NBC placed Heroes: Origins on indefinite hiatus as a result of the strike,[18] and though seven scripts are in for ABC series Cashmere Mafia, the network has delayed the show's premiere date from the original late November premiere.[19]

Scrubs may not be able to air a series finale as only 12 of its 18 order episodes have been written.[20]

NBC is considering airing the original British version of The Office in place of the American version.[21]

The strike does not affect reality shows such as American Idol, whose episodes are unscripted, or news programs, whose writers belong to a different guild.[22]. However, CBS News and CBS's locally owned and operated station news operations are currently subject to a different strike action by WGA which may be authorized November 15, as CBS News writers under WGA have been without a contract with the network since April 2005.[23]

Soaps such as The Young and the Restless, Days of Our Lives, The Bold and the Beautiful and As the World Turns have scripts written through January 2008. Guiding Light has an additional month of scripts, so it should air new episodes until February 2008.

Impact on Shows

TV Show Status
Show Network Episodes/scripts
Boston Legal ABC 14 or 15 episodes will be completed. [24]
Cavemen ABC 12 of 13 episodes have been completed. [24]
Desperate Housewives ABC Nine episodes have been written so far. [24]
Lost ABC Expected to have eight of 16 episodes prepared, likely to premiere Feb. 8, 2008[24]
Pushing Daisies ABC The final draft of the ninth episode was turned in by creator Bryan Fuller before midnight on November 4, 2007. As of November 6, 2007, the eighth episode is currently filming. Executive producer Dan Jinks expects to keep the show in production until Thanksgiving.[25]
Late Late Show With Craig Ferguson, The CBS Immediate reruns beginning November 5, 2007[26]
Late Show With David Letterman CBS Immediate reruns beginning November 5, 2007[26]
Daily Show With Jon Stewart, The Comedy Central Immediate reruns beginning November 5, 2007[26]
Colbert Report, The Comedy Central Immediate reruns beginning November 5, 2007[26]
Everybody Hates Chris CW All 22 episodes of season completed,[27] done with production for season[28]
Smallville CW 15 scripts written, studio expected to produce all[29]
24 Fox Eight episodes of 24 will be completed[30]
Shield, The FX All 13 episodes of season six (the final season) will be completed[31]
30 Rock NBC 9 Episodes Fully Completed; Episode 10 due to be filmed the week that the strike began,[24] it is doubtful that episode 10 will be filmed on schedule due to Star/Writer/Executive Producer of the show, Tina Fey, taking to the picket lines outside of the real-life "30 Rock".[32]
Friday Night Lights NBC 15 episodes[27]
Heroes NBC New scenes were shot for episode eleven that enabled it to function as a season finale, rather than just the conclusion to 'Volume 2' and a mid-season finale as was originally intended by the producers. Additional episodes of 'Volume 3' were in the can before the strike began. [33]
Late Night With Conan O'Brien NBC Immediate reruns beginning November 5, 2007[26]
Office, The NBC "One unproduced Office script that's ready to go"[34]
Scrubs NBC 12 of 18 ordered episodes completed.[24] Series Finale episode could possibly not be produced or broadcast,[35] if this was to happen, series creator Bill Lawrence will try and release a straight-to-DVD final episode. [36]
Tonight Show With Jay Leno, The NBC Immediate reruns beginning November 5, 2007[26]
Saturday Night Live NBC Immediate reruns beginning November 10, 2007[26]

Possible industry-wide strike

In July of 2008, the contracts of two additional entertainment industry labor unions—the Screen Actors Guild (SAG) and Directors Guild of America (DGA)—are set to expire. If all three unions cannot reach an agreement with the AMPTP, they are expected to support each other in a collective negotiation that would effectively bring the Hollywood film industry to a standstill.[37][14][38][39]

Further residual increases for the SAG, DGA and other unions will be strongly influenced by the outcome of Writers Guild negotiations.[citation needed]

See also

Template:Organized labour portal

References

  1. ^ Michael Cieply and Brooks Barnes."Writers Say Strike to Start Monday," The New York Times, November 2, 2007.
  2. ^ a b Vince Horiuchi."Writers strike to hit TV first - and hard," The Salt Lake Tribune, November 4, 2007. Cite error: The named reference "slt-110407" was defined multiple times with different content (see the help page).
  3. ^ Agence France Press. "Hollywood writers go on strike over new-media pay," November 4, 2007.
  4. ^ "Studios Rush To Cash In On DVD Boom; Swelling Demand for Disks Alters Hollywood's Arithmetic". The New York Times. April 20, 2004. Retrieved 2007-11-05. {{cite news}}: Check date values in: |date= (help)
  5. ^ WGA's Proposals
  6. ^ Writers Guild votes overwhelmingly to authorize a strike
  7. ^ Artfulwriter.com - A blog maintained by writers Craig Mazin and Ted Elliot
  8. ^ http://www.showbuzz.cbsnews.com/stories/2007/11/02/tv/main3443446.shtml
  9. ^ Cieply, Michael (2007-08-31). "To Strike or Not? Hollywood's Next Drama". The New York Times. Retrieved 2007-11-06.
  10. ^ Fernandez, Maria Elena (2007-11-01). "A line in the sand". Los Angeles Times. Retrieved 2007-11-06.
  11. ^ McNary, Dave (2007-11-02). "Writers call for strike: Union producers to resume talks Sunday". Variety. Retrieved 2007-11-06. {{cite news}}: Unknown parameter |coauthors= ignored (|author= suggested) (help)
  12. ^ "Contract 2007 Negotiations Statement". Writers of Guild of America, West. 2007-11-04. Retrieved 2007-11-06.
  13. ^ Finke, Nicki (2007-11-05). "On The Line, Part II: Strike News Day One". Deadline Hollywood Daily. Retrieved 2007-11-06.
  14. ^ a b Hollywood in strike zone
  15. ^ Studios brace for life without scribes
  16. ^ Strike Threat Spreads Panic in Hollywood
  17. ^ The Latest Word
  18. ^ "NBC benches 'Singing Bee', 'Heroes: Origins'; ABC extends 'Murder Club'". The Futon Critic. 2007-10-31. Retrieved 2007-10-31. {{cite web}}: Italic or bold markup not allowed in: |publisher= (help) "It's understood the project has been shelved indefinitely due to financial concerns as the network readies for the expected WGA strike."
  19. ^ "'Cashmere Mafia' debut is delayed". Los Angeles Times. 2007-11-05. Retrieved 2007-11-05. {{cite web}}: Italic or bold markup not allowed in: |publisher= (help)
  20. ^ Richmond, Ray (2007-11-05). "'Scrubs' diagnosis unclear". The Hollywood Reporter. Retrieved 2007-11-05.
  21. ^ Hollywood Writers May Strike over New Media
  22. ^ CNN (2007-11-05). "Get ready for reruns: Writers hit the picket lines". CNN.com. Retrieved 2007-11-05. {{cite news}}: |last= has generic name (help); Check date values in: |date= (help)
  23. ^ Gold, Matea (2007-11-05). "Union leaders expect CBS News writers to back strike". Los Angeles Times. Retrieved 2007-11-05. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  24. ^ a b c d e f LA Times staff (2007-11-05). "The TV Grid". Los Angeles Times. Retrieved 2007-11-06. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  25. ^ Schneider, Peter Sanders, Rebecca Dana and Sam (2007-11-06). "As Writers Gamble for Digital Pie". The Wall Street Journal. Retrieved 2007-11-06.{{cite web}}: CS1 maint: multiple names: authors list (link)
  26. ^ a b c d e f g Gough, Paul J. and Kimberly Nordyke (2007-11-03). "Late night during strike: No laughing matter". The Hollywood Reporter. Retrieved 2007-11-06. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  27. ^ a b McCollum, Charlie (2007-11-06). "Strike scrambles production". San Jose Mercury-News. Retrieved 2007-11-06. {{cite news}}: Cite has empty unknown parameter: |1= (help); Italic or bold markup not allowed in: |publisher= (help) Cite error: The named reference "sjmnstrike" was defined multiple times with different content (see the help page).
  28. ^ Hibberd, James (2007-11-06). "Sitcom Strike Shutdown Rundown". TV Week. Retrieved 2007-11-06. {{cite news}}: Cite has empty unknown parameter: |1= (help); Italic or bold markup not allowed in: |publisher= (help)
  29. ^ TV Guide Staff (2007-11-06). "Smallville Ready to Fly with 15 Episodes". TVGuide.com. Retrieved 2007-11-06. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  30. ^ Rizzo, Carita (2007-11-06). "Will the Clock Run Out Early for 24?". Retrieved 2007-11-06.
  31. ^ Ryan, Shawn (2007-11-05). "Show Runner Explains Why He's on Strike". Nikki Finke's deadlinehollywooddaily.com. Retrieved 2007-11-06. {{cite news}}: Cite has empty unknown parameter: |1= (help)
  32. ^ Sassone, Bob (2007-11-05). "Tina Fey joins picket line". TV Squad. Retrieved 2007-11-06.
  33. ^ "Strike Fallout: Heroes Prepping Season Finale!". TV Guide. Retrieved 2007-11-07.
  34. ^ Hibberd, James (2007-11-05). "Daniels Pickets 'Office' Production". TV Week. Retrieved 2007-11-06. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  35. ^ Richmond, Ray (2007-11-05). "'Scrubs' diagnosis unclear". The Hollywood Reporter. Retrieved 2007-11-06.
  36. ^ "'Scrubs' Returns for its Final Season". ET Online. 2007-11-01. Retrieved 2007-11-06.
  37. ^ Film studios braced for strike by Hollywood writers and actors
  38. ^ The downside of Hollywood strikes
  39. ^ Strike Over 'New Media Pie' Could Cripple Hollywood
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