This May Get Ugly - The Possible Writers Strike

Over the past few days and weeks I have had multiple conversations about the looming writer's strike in Hollywood. Most people I have spoken with are aware that there is a strike on the horizon, but because they are not directly involved with the TV and Film industry they are not entirely sure what the whole thing is about.

In its most basic form the situation is like this.
On one side of the negotiating table is the Writers Guild of America (WGA) and on the other is the Alliance of Motion Picture & Television Producers (AMPTP). The AMPTP is the group responsible for negotiating on behalf of Hollywood (networks, studios, producers, etc.).

The two main issues:

• Residuals on DVD sales - This issue has been around since the late 80's, when Writers fought to get greater residuals on VHS sales. They eventually gave in on this issue because back in 1989 nobody thought TV shows on VHS would be a big thing. Fast forward to present day 2007, TV shows on DVD are BIG business. The problem is that the agreement in 1989 and subsequent agreements have been written in a way that writers are still getting the shaft on residuals for DVD sales of their work. Obviously they don't want to get shafted again this time around.
  
• Mobile, Online, "New Media" - Once again let's go back in time, in 1989 no one except Al Gore was thinking internet, so when deal were made online content was never a consideration. Now, in the current age of watching shows online, writers get nil for their work that is re-played online.
  

On the issue of "New Media" the AMPTP took the position that they still need to do research on where this growing industry is going. Hell, there are technologies that can come into play we are not even talking about today (just like the internet in 1989). This didn't please the WGA at all. Then the AMPTP proposed a re-structuring of the residuals system that wouldn't pay the writers a flat residual fee based on use and sale of the product, but instead writer's residuals would be tied into the profits. What they were saying was we won't pay you until we recoup our costs, and then you will get a percentage of the profit. To this the WGA basically said "fuck that! anyone can play with the books and make something look like a loser. We are paid residuals based on our work, not the success of the product which we have almost no control over." The AMPTP also proposed a re-structuring of how writers who are paid "above scale" are paid residuals. The gist of this was if a writer is paid X dollars over scale, then you wouldn't get paid anything until there is over X dollars in residuals. The WGA looked at this as the AMPTP turning a writer's payment for a script into a pre-payment on future residuals, where in reality they are two separate things. The original payment is for the product itself whereas residuals are supposed to be a payment for re-use of the product.

This last proposal set the WGA over the edge, they were so pissed off in fact that the AMPTP took the profit based proposal off the table, in a move saying "here look we are willing to work with you, calm your ass down!"

As far as I understand it, the two sides are not much closer on these or many of the smaller issues. The current agreement between the two expired at midnight Wednesday, and the writers union has already voted to authorize a strike. Keep in mind, an authorization doesn't mean strike; it just means they can call for one when the time is right. Negotiations continue but it appears a strike is coming.

What a strike will mean for us:
Hollywood has been preparing for a possible strike, stocking up on as much stuff they could before anything happens just in case. If the strike is short lived, then the impact would be small to the point that it would probably have no effect on us. But if it's a long drawn out affair then the effect will be much greater. The impact of a long strike will greatly affect TV; eventually they will run out of scripts rushed into production before the strike. New episodes of shows would start to peter out and we would see a lot more reruns and reality shows. Reality shows are not represented by a union and therefore can continue production of new product with or without a strike. We would also see a rise in news magazine shows. During the last strike show like 48 Hours hit it big, while some serialized shows never made it back. Also, late night shows like Letterman can't do a show without its writers, so we may see them take a long vacation as well.

I don't think the film industry will not be as greatly impacted because the studios have gotten a bunch of movies in the can already that they can release down the line. Plus if TV is shitty then maybe people will go to the movies more.

The impact that is not talked about as much is all the people who will have no work if sets and shows are shut down. I'm not so concerned about the actors, they will find work (if there is a long strike don't be surprised if you see some big names hitting the stage), it's the people who rely on making a living working on TV shows and on studio lots. I think they get screwed the most by this strike.

Obviously there is more to the strike; this is just the situation as best as I can understand it and put in a way I hope others can too.

If you want more info check out this write-up done by the good people over at Pajiba "The Looming Hollywood Strike".

If a TV Falls in the Woods has a good perspective from a writer out in LA.

Also, you can check out this piece in the LA Times - "A writers strike nobody wants."

I have used bits and pieces of these as references, they are chock full of info (especially the Pajiba guide).