Press
Digital Distribution Tangling Up Writers Guild of America Talks, Strike Looms
Posted by Matt Buchanan at 5:15 PM on November 1, 2007
In case you were unawares, the contract between Hollywood producers and the Writers Guild of America was supposed to expire a few hours ago, leading to a possible strike, meaning bad things could happen. One of the major issues is digital content and distribution—after getting screwed over by the terms of how they were paid from video and DVD, set many moons ago, they're leery of losing out on tons of cash yet again. Since a multitude of content is going online in an infinitude of formats—web-exclusive content, full episode replays, ARG, etc. on network websites, iTunes and the works—the terms are inevitably just as complicated. Right now, writers only get coin if a viewer pays to see the goods, making ad-supported Hulu, for instance, a black hole for them no matter how many users tune in.
What the guild's asking for with online or mobile distribution is 2.5 percent of the "distributors' gross revenue." Apparently this is tricky for distributors because it's difficult to tell what percentage of the online audience is new to a show or old hands simply shifting to a different medium—I'm guessing this is a problem for the issue at hand because producers don't want to pay writers twice for the same audience.
But, it seems unfair to only compensate writers for content explicitly purchased by viewers (like on iTunes), particularly as more and more content shifts online supported by ads, even if that ad revenue is nowhere near what is for broadcast for the time being. It's only going to get bigger, so they should get a hold of what they can, while they can, lest they feel screwed once again in a few years. [WSJ]

Comments (AU Comments · US Comments)
There are currently no AU comments for this post.
axiomatic
Posted 4:25 PM 1/11/07
Come on guys, I know that upping the writers salaries will not make them better writers. But we can't ignore the fact that it would effect some of them.
I got my salary "leveled" by my company a few months ago because HR finally figured out that I am way under paid in comparison to my colleagues. Now this wasn't a RAISE or a PROMOTION, just a "leveling" but ya know what? There is a spring in my step and lately I'm pretty thrilled to be employed, even though I know I'm the lowest paid on my team.
Now apply the same effect to the TV writers.
This problem goes in line with my "Why is it that artists are less paid than managers at a game company? Without the art, there is no game!" argument that if you are an artist, you get it, if you are a middle manager, you don't get it.
"Suits" ruin everything.
axiomatic
kayne001
Posted 1:35 PM 1/11/07
Good point OMG-Ponies @11:49
that's what i do since I miss many shows.
though you should also add convenience to that
kayne001
ninjamurf
Posted 1:25 PM 1/11/07
@axiomatic: Upping their salaries doesn't magically make them better writers. It's not like they are sitting down at their desks currently and thinking, "hmm, I'm only getting paid $xx, so I'm only gonna make this show kinda good. If they paid me more I'd make the show better."
ninjamurf
omg-ponies
Posted 1:21 PM 1/11/07
@axiomatic: "Extra cash" laying around doesn't automatically guarantee salary increase?
Why should the writers be given a salary increase? What financial (not moral) reason is there?
Because the writers will go on strike? Okay. That means more news magazines and reality shows. If history is any indicator, the networks can weather a writers' strike with ease. Look at Survivor, Big Brother, The Weakest Link, and Who Wants To Be A Millionaire and of course, American Idol.
Who knows what a writers' strike would lead to? Maybe another reality juggernaut. Maybe Oprah or Martha or some other talk show in prime time. The traditional sitcom has been gasping for breath since the demise of Must-See TV. While CBS and NBC have some decent sitcom offerings, they pale next to the makeovers and talent shows.
The last writers' strike led to reality TV and Dateline ad nauseum. A strike is a very risky card for the guild to play because Survivor and Millionaire will be thrown back in their faces.
Is it unfair to screw writers over? Probably. Does it make good business sense to screw writers over as much and as often as possible? Probably. Is it moral? Who cares.
omg-ponies
Cassifras
Posted 12:28 PM 1/11/07
@wk1234: pffft! Like t.v. writers are any better. Have you seen what's on basic cable lately?
Cassifras
biker_ray_pa
Posted 12:20 PM 1/11/07
That's interesting that they don't have to pay the writers when the content is on a "free" service like Hulu. Maybe that explains why the providers like NBC are trying to get away from iTunes. Crooked Hollywood *$%@#
biker_ray_pa
Oneon1isto
Posted 12:05 PM 1/11/07
@wk1234: No, its all writers. It just affects TV shows faster because they only are 2-3 shows in the can ahead of a strike, while there are plenty of movies written and getting shot and being edited to last for another year or so. I think they mentioned we wouldn't feel the effects in movies until 2009.
Oneon1isto
axiomatic
Posted 11:55 AM 1/11/07
@omg-ponies: Well then if the networks are double dipping then there is extra cash anyway. Up those writer salaries!
I have a hard time feeling bad for studios that don't listen to their viewers and only react to business challenges. There is plenty of money flowing here, dump some middle management if you need cost savings. They weren't doing anything for your studio anyway.
axiomatic
omg-ponies
Posted 11:49 AM 1/11/07
@axiomatic: Here's the thing. Thanks to DVD, DVR, iTunes, and Bittorrent, there is an emerging trend in viewership, marked by an exacerbation of the "sophomore slump".
Serialized drama shows like Heroes, The Office, Prison Break, and 24 have tremendous first-season viewerships which the network leverages for ad time. Unfortunately, thanks to the aftermarket, which is essentially the network double-dipping (earning more money through DVD sales and rentals), viewers use the first season to see if the show is "worth it" and then just wait for the DVD release of subsequent seasons. Why worry about missing an episode when you can binge-watch an entire season a little later?
Additionally, people use timeshifting (TiVo, DVR, iTunes, Bittorrent) to watch the show commercial free (which screws up the ad rates).
Viewership doesn't drop necessarily because of bad writing; it drops because people check out the competition, knowing they can watch the show on their schedule.
omg-ponies
Boognish
Posted 11:48 AM 1/11/07
I heard about this on NPR last week basically they are rushing a bunch of project to production with short deadlines in fear of the looming strike. In turn this promises crappy writing. So if you thought your favorite series was losing direction last season, just wait.
Boognish
wk1234
Posted 10:51 AM 1/11/07
I wonder how this works for movies: if on large screen, do they get a cut, if then on DVD, do they get a cut, if on premium cable, do they get compensated.
Seems like TV will just have to consider new revenue for them must be shared with the ones that help make it happen. (writers)
wk1234
wk1234
Posted 10:49 AM 1/11/07
@Cassifras: I think this is only for TV, not movies. Then again, the dreck of movies lately (sequelitis, crap tv show to $$ making crap movie) means that in 10 years there will be less TV to rip into a movie.
wk1234
axiomatic
Posted 10:24 AM 1/11/07
Wait, let me get this correct. The Studios want to ensure that the guys that make the studio shows "good" don't make too much money off of them?
Hey Studios, what if.... you doubled their salaries? Maybe the shows you already paid for might become watchable with new great stories, and your viewer audience increases two fold?
I have a feeling they don't see it this way.....
axiomatic
omg-ponies
Posted 7:56 AM 1/11/07
@DaveTyranham: Not everyone can get points off of gross. When every does that, there's not enough revenue to cover costs. That's why only special people get points off gross.
Writers are special, but only in the educational sense of the word.
omg-ponies
Cassifras
Posted 7:20 AM 1/11/07
if the writers go on strike, who will screenplay the sequals to and remakes of actual good movies?
tip to hollywood: no one cares
Cassifras
Joseph
Posted 7:11 AM 1/11/07
This is why my dreams of being a musician are falling by the waysidie. While the internet is great, its impossible to track every transaction and all the data thats exchanging hands.
On one hand, you have the price of video production going WAY and I mean WAAAAAAAY down. A Red Camera setup with some video editing software and some powerful computers will run you under $100,000. The challenge is that all these dinosaur companies still have billions invested in antiquated systems that they are used using, but sum a 1 million to 20 million dollar investment. And the same this is true in the music industry only cheaper numbers. The waters ahead for any entertainment media are rocky--not a good career to pursue unless you REALLY REALLY love it.
Joseph
DaveTyranham
Posted 6:20 AM 1/11/07
Points off gross for everyone including writers makes sense to me.
DaveTyranham
omg-ponies
Posted 6:10 AM 1/11/07
Personally, I think the writers should go on strike. Striking is a tried-and-true tradition in labor relations. Besides, the studios have to cave into the writers' demands or they won't have any scripted programs.
What are the studios to do without WGA writers? You need writers for television. You can't just stick a camera in the hands of some schmo and document the life of some loser. No one wants to watch a program about real life. Talent search programs? Puh-leeze. Star Search is dead. There's no way people would watch a talent show program. Game shows? Bob Barker is dead and so are game shows. No one is going to watch some lame-o gimmicky game show. Dance competitions? What is this - the Fifties? Why would anyone want to watch no name dancers and has-been celebs?
All people want to watch are sitcoms and hour-long dramas. The traditional sitcom and the hour-long will always be around. The studios have to cave in.
omg-ponies