With the October 31st date getting closer and closer (the date the current agreement between the Alliance of Motion Picture and Television Producers and the Writers Guild expires) and the two sides seemingly miles apart and no where near an agreement, it looks like a strike is imminent and maybe unavoidable at this point.
One of the key problems seems to be how to handle royalties with internet distribution. The folks at Yahoo news give us this:
The studios and television networks, represented by the Alliance of Motion Picture and Television Producers, issued a statement saying the writers’ demands “would impose unreasonable costs and draconian restrictions.”
The biggest differences center on proposals to revamp the decades-old system by which TV and film writers are paid extra when their work goes beyond an initial broadcast or theatrical release and into reruns, DVDs, the Internet or other outlets.
With union and management sharply divided on key issues, strike concerns have been running high in Hollywood, prompting studios and TV networks to stockpile scripts and accelerate production on some projects as a precaution.
There are two other things here that make each side seem a bit unreasonable:
1) Producers want to put off any agreements as far as internet distribution goes for three years to see how the new market works.
On the surface, this seems reasonable… it would be foolish to enter into any long term deal unless you have a good idea how internet distribution was going to work out. BUT… uncertainty or not, the studios ARE making some money on internet distribution NOW… and so at least some sort of short term arrangement should be made to compensate writers for that revenue. Make it a short term clause, and look at it again in three years.
2) Producers want to withhold royalty payments until the Studio makes back its investment
This is absolutely the way it should be. I’ve always said that “those who take the risk should be the ones to reap the rewards”. Writers want to get paid, AND get extra for royalties…. but they don’t want to assume any of the financial risk. They want a win/win/win for themselves. What the studios are asking for is totally reasonable here:
– Writers get paid upfront as they always do
– Studio invests and risks all the money in the project
– Writers get paid extra for royalties once Studio at least recoups the money invested
This is MORE than fair. Studios (or any business really) should not be forced into a position where they lose money on a project, and yet STILL have to pay out more in royalties to those who took no financial risk. It’s not right, it’s not fair, and the Writer’s need to concede to this point.
So as I see it, both sides are right on an issue and wrong on another one. The ticking bomb of Oct 31st continues to count down.
