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November 07, 2007

I Don’t Respond Well To Rhetoric

Day after day, hour after hour, I am finding the WGA Strike more frustrating… not because I hate strikes or I am already bored with the TMZing of picket lines with reports of what celebrity is on the line this hour – it’s not a fucking telethon! – but because I feel like I am on the outside looking in.

I believe in the idea of what the writer’s want. They deserve more and should get more. Period.

But the rhetoric of the WGA side is so full of shit that I can’t simply line up and throw my fist in the air in support.

I guess that when you get into a fight (and I rambled on in The Hot Button about it today at length), you stoop to your opponent’s level. But these are writers… my brethren… the most intellectual of media artist… people who know better.

When I look at a really well done, snappy package like United Hollywood’s Why We Fight…

… I am horrified by how much of it is, by intentional omission, a lie. It’s not an effort to seek truth. It is an effort to raise support.

4 cents is a ridiculously small amount for writers to get on the sale of a full priced retail DVD. 8 cent is no less absurd, based on the argument that it’s 8 cents of a $19 sale. But as the WGA and everyone else knows, when looking at reality, it’s not $19 the studios make versus 4 cents or 8 cents to the writer.

Why is it so hard to get to arguing that DVD brings in almost $20 billion into studio coffers (film and TV, actual returns, not retail) each year, three-quarters of which is eaten up by expenses (including production costs still against the budget after theatrical), leaving roughly $5 billion in profits. WGA writers currently get just about 1% of that profit now… not the gross, not the net… profit. And it seems fair for that to be 2%.

Would it be unfair to argue that everyone gets paid on these films and television shows up front, just like the writers, and that it would be nice for the writers to get one dollar out of every fifty of the profit on these shows and movies? Is it really so horrible for the industry unions as a group to expect 10% off the top of profitability?

But this whole 4 cents versus $19 thing just pisses me off!

And the whole idea that the crappy video rate was a rollback, generously allowed by WGA. Get out! It was a new medium. A price was set. It doesn’t matter how that was argued. The price was set. And it hasn’t risen because negotiators haven’t made that enough of a priority.

And now, here we are, as the DVD medium starts its fade, fighting over studios paying out more, when the real dirty secret on all of this is that they are selling three movies at a time for $5 on the shelves of Wal-Mart and Target… we are already in the blue light special portion of the life of DVD.

DVD revenues for film actually went down from 2005 to 2006 and TV went up slightly, but only because the libraries are being raided, so gross figures are up while units per show are dropping.

So how does the industry handle the shift to niche delivery in which all films and television are available at any time via multiple delivery systems with multiple price points? The whole financial system needs to be rethought with the goal of growth being profitable all around and no one being left out in the cold. But it is a future in which money for success, as always, will be around, but money for the relative failures will be less. (We are still in a moment when failure on broadcast TV doesn’t mean a major loss for a deficit financier, thanks to DVD sales.)

But while writers are screaming about the future, they are also screaming that the residual system should stay in its antiquated form and new media should confirm to it. If you are willing to strike for progress, how about thinking about some real progress? The attitude is like a kid trying not to get smacked for taking cookies out of the jar after midnight while he actually has the money in his pocket to buy cookies on the way home from school and to stash them so no one is controlling his cookie assets anymore.

The idea that the internet is EQUAL or within single-digit years of being equal to broadcast television in its ability to generate revenue is bullshit of epic proportions. Yes, someday, delivery systems will be completely different. But 10,000 people or 50,000 people or 100,000 people watching a TV show online is not the same as 10 million watching it in broadcast. Hell, even the significance of broadcast is being fought over by advertisers and ratings gurus, with multiple viewings being added up as though they were one viewing in an attempt to get more dollars for ads.

The future of everything but broadcast is counting specific views. WGA sticks to bargaining the same-old-same-old with bigger numbers because, in part, doesn’t want to get into the ugly business of seriously considering how well suited it is for collective bargaining. Should a movie that does lose money pay the writer residuals the same as a smash hit? How many writers are earning outside of the collective by writing while the union looks the other way? Isn’t there a better idea out there of how this union should work for everyone involved? Why aren't the showrunners paying more into the union? Why isn't it set up so all members have guarenteed health care for at least a decade after qualifying with a certain level of earnings in one year? And why is credit arbitration one of the worst experiences working writers still go through every day?

What I find so painful is that so few people want to REALLY discuss how it all works. The simple Studios = Bad, Writers = Good is not without its merits. But the irony is that The Studios have an advantage over the writers because they get to be what they really are and no one looks any more askew at them than normal… not unlike The Republican Party. And the writers, not unlike The Democrats, are forced to play games with their reality in order to appear as high minded as they want to be perceived as and get smacked hard when they get caught simply being human.

The evil studios want rollbacks... but not from the members who have the most to lose from a WGA strike, but from the writer/rpoducers who make the real money. They don't much care about paying $.005 residuals on internet views... they care about the agents who will follow up behind the union looking for 7 cents per internet view for their clients who produce the same shows. And we all know - those of us who care to know - that they will be coming. And that does start to add up to real money. And when all is said and done, will advertisers be paying 50 cents per "free" internet viewing in order to reach that audience so that it is not a money losing proposition?

No one knows. But we do know that everyone is walking into that future together... studios will squeeze and agents will squeeze back... writers will toil and feel like mushrooms... and money will, as always, change everything.

Rhetoric. Argh.

Please, WGA... sell me something I can buy without feeling used in the light of the next day. If you can sell me, you can sell the world. I want to buy. We all want to buy. Just do us all a favor and keep the WWII references to a bare minimum.

Posted by poland at November 7, 2007 11:21 AM

Comments

Heat stated; "But this whole 4 cents versus $19 thing just pisses me off!" Oh it can piss you off all the live long day Heat, but 4 cents is a horrible rate. You can go on about what it takes to make these DVDs. You can go on about the cost. It simply does not change the fact that writers only receive 4 cents of a 20 buck product. That's a statement -- even without the real facts behind it -- that sticks with people like cds only costing 3 cents to make.

Posted by: IOIOIOI [TypeKey Profile Page] at November 7, 2007 03:14 PM

Eh. If it was set at eight cents way back when, we'd still be sitting back saying what a shitty deal it is and how we never should've agreed to it.

Posted by: RDP [TypeKey Profile Page] at November 7, 2007 08:45 PM

At the Edwards cinema in Valencia I walked up to the box office to buy a ticket to a matinee showing of AMERICAN GANGSTER and I noticed that not only had the cost of a matinee ticket gone up to 9.50, but that matinee pricing was cut off at 4:00 p.m. I asked the clerk as I was buying my ticket when the price change had occured and why, and he said to me with a face as straight as a ruler, "It's because of the writer's strike."

Momentarily putting aside my anger over the fact that a matinee showing costs 9.50 and doesn't exist after 4:00 p.m., I think it's crazy how pervasive the strike is among non-industry folks here. Everybody is either talking about it or reading about it. Craig Mazin is apparently a star of the internet now, as is Nikki Finke, because I swear to you I hear their names from total strangers every day now. People, generally, know the issues even if their understand isn't the greatest.

Posted by: JSThompson [TypeKey Profile Page] at November 7, 2007 09:16 PM

"But 10,000 people or 50,000 people or 100,000 people watching a TV show online is not the same as 10 million watching it in broadcast."

Which is why this is all done with PERCENTAGES, David. Not fixed rates, which as you say, the Studios are apparently all in love with.

2.5% of 10,000 people or 2.5% of 10 million people downloading is still 2.5% that can be factored in ahead of time, unlike some random fixed rate.

We've been over this. It reminds me of Jon Stewart mockingly saying "The internet? It's too new!"

Posted by: Tofu [TypeKey Profile Page] at November 8, 2007 08:20 AM

Slightly off but still on topic...

As a professional writer, what bothers me most about the strike at this point are two things...

1. All of the actors coming out in favour of the writers only because they have some vaguely socialist notion that union = right, producer = wrong.

If they really cared about the writers, they would remember that the next time the went on late night chat shows and blamed a poor film on a the script when the writer can't defend him/herself.

They would remember that the next time they want to re-write or change a writer's dialogue and then give an interview saying how poor the script was.

2. Diablo Cody. I have not seen Juno. I have never seen Cody speak or talk. If Juno is 4-star Oscar calibre classic then I will recant.

But based on everything I have read about her and her background it seems like the only reason she is there is because of her colourful background as a stripper and the fact that she bares her ass in her photos. If I was on that line, I would tell her that it is because of an industry that values flash over craft that she is there. That many decent writers do not get a shot and she has no business showing faux 'solidarity' for the cause.

Again, if Juno is genius, I will recant. But up till now, all I see in Cody is a gimmick and a hook.

I'm just sayin'...

Posted by: Nicol D [TypeKey Profile Page] at November 8, 2007 11:04 AM

When was the last time you saw an actor go on a talk show and blame the failure of their movie on the screenplay?
This is Hollywood, where nobody ever speaks badly of anyone.

Posted by: jeffmcm [TypeKey Profile Page] at November 8, 2007 12:15 PM

So 1% of $19 is 19 cents. And you say the writers get less than 1%, so lets say this is no more than 18 cents. So doing this your way, the writers should say that they're only getting 18 cents per DVD. How is what they're saying really so much worse?

Posted by: mattn [TypeKey Profile Page] at November 8, 2007 12:28 PM

This will probably seem offensive, so I apologize in advance.

And I'll start by saying that if you accept the fact that there should be residuals, 4 cents is unreasonably low.

BUT I have trouble understanding why there should be residuals. For me, it all goes back to the contract. If residuals should be paid, they should be bargained for. A writer signs a contract when he gets hired and gets paid according to that contract.

And just because the producers have the upper hand when negotiating contracts isn't a good enough argument for me. The reason they have the upper hand (if they do) is because there is a surplus of supply and not enough demand. Too many writers, not enough jobs. Well - that's a cost of being a writer. Of wanting a job in a business where there's a surplus of supply.

I don't understand why this business should be any different than any other business. If I have a toy company and I enter into a contract with a company in China to make the toys for me - I don't have to pay them any more if the toys they made turn out to be a hit. Or if I decide to start sell ing them in Canada in addition to the United States.

The manufacturer can decide to stop working for me unless I pay them more, but then I either sue them, or renegotiate the contract. Shouldn't be any different in the entertainment biz.

It just doesn't make sense to me. And the fact that residuals aren't dependant on the profitability of a film/television series makes it even worse.

And the argument that the studios are making sooooo much money doesn't work with me either. So what? They paid for the product and took the risk.

Obviously, I'm not a union person. And I'm not a socialist. But I want to understand.

Please. Explain.

Posted by: Paul VJK [TypeKey Profile Page] at November 8, 2007 02:37 PM

Because Paul, you're also providing a service.

As in "Entertainment". And if that service is reused to the profit of others, but not to you, who provided the service, than compensation for that service is not fair.

As a writer and an actor you can find similarities between the crafts; but I'm going to use the analogy of the actor for this purpose because it's easier to understand why these strikes matter in terms of compensation.

When providing Entertainment as a service and content in these times; the arguable "service" part of it can take up inordinate amounts of personal energy and time that only monetary compensation can satiate.

In other words; if you become successful in this Entertainment game, you get famous. And the harsh reality is, once you become famous you can never go back. You NEVER get your privacy back. Even the fade aways get bothered every day. This is the curse for those that get into the game TO BE FAMOUS, rather than those of us who may actually do this because we love the craft.

So, if that success is obtained and once the prison of fame sets in. You want to get paid. You want that money to make sure your personal time, energy and freedom are compensated. And yes, if you can't stand the heat, get the fuck out of the kitchen and choose to sell insurance instead. That is part of the life you choose. But you still have no idea how intrusive it can be. And if you're broke it sucks. Don't understand what I'm saying? Ask Gary Coleman. He'd be happy to explain it to you. Or, Tom Green, or Emilio Estevez.

It goes the same for writers, in some capacity.

The measure publicity that is required among artists, and the amount of creative energy needed to generate that publicity falls into the line of service and deserves residual compensation.

I thought the YouTube video of the writing staff of The Office summed it up pretty nicely.

Posted by: THX5334 [TypeKey Profile Page] at November 8, 2007 06:52 PM

Can we stop calling them "producers"? They're corporations. Plain and simple.

Posted by: sloanish [TypeKey Profile Page] at November 9, 2007 12:05 AM

An answer to Pauls post above would be that the entertainment business is different from manufacturing (I am far removed from the film industry and am only an avid observer so others will probalby be able to answer this better but I thought I would give it a shot). The chinese manufacturer in your example would be comparible to the company that presses the DVDs, as one is providing tangible goods while the writers are providing intellectual property. You would pay the people who print the Trivial Pursuit game boards differently than you would pay the inventor of the game (who would also want to be compensated when you decide to create a dvd or online version of the game). If you sell a toy to a child you are only selling it once at a retail level in a way that creates revenue. But the studios are selling the intellectual property and creating revenue each time a program or film airs and those that have contributed in the creation of the copyrighted material are legally eligible to receive compensation from each individual sale.

Posted by: hcat [TypeKey Profile Page] at November 9, 2007 10:01 AM

I would say that both sides of the residual issue have a real point.

The idea that is irresistible about a residual system is that resale of the shows/films is a part of the idea of success. And there is little reason to feel that the writer and other talent involved deserve to be paid for success beyond the standard expectation that everyone signed on for.

On the other hand, film and television is assumed to be monetized in a dramatically different way in the era of video/DVD and now electronic transmission.

I would argue that a big hang-up here is that WGA is holding on to the system as it has existed for decades now much as the studios are hanging on to their traditions.

Both sides would be better off, in my opinion, if they were willing to indulge a system that increased initial payments to match or surpass, on average, what is currently paid in residuals on a predictable basis and then a residual for amounts earned above a degree of expectation – studios are calling it “profit” while WGA knows that studios can bury profit far too easily – that should include bigger numbers for DVD after a certain number of units sold and television and internet residuals based on sales.

Of course, there should probably also be a residual system that is based on pay scale. But that’s another conversation.

The big issue for studios is not that they so hate paying writers, but that opening up the fledgling internet business to payouts will spread like wildfire. And at this point, giving the unions position from which to sue the studios for not monetizing it in a way that pays negotiated residuals is a problem. Conversely, until there is a much bigger audience for internet deliver, it is completely possible for the networks and studios to hide almost all the ad revenue they are creating in the network buys… making the percentages worthless.

Of course, agents for showrunners and star actors will not allow the studios and nets to get away with percentage games. The internet is more easily quantifiable than any other medium and you can be 100% sure that agents will demand in the next round of contracts that their people – writers, producers, actors, whatever – will get paid a flat rate for every single showing once that door is open.

I’m not saying that writers shouldn’t get paid. But they have to build reasonable landmarks into any deal they do. And they have to realize that they are opening a door for the entire industry of people who get paid for the reuse of work. What is currently killing the studios is that gross players are being paid based on DVD growth from three years ago that is no longer growing. The squeeze that those studios are putting on both writers and middle-class actors is collateral damage, ugly as that phrase is.

Posted by: David Poland [TypeKey Profile Page] at November 9, 2007 07:38 PM

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