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January 17, 2008
Now There Are DGA Details...
The deal points are here...
No DVD... but the details on internet delivery are going to make it very hard for WGA to stay on strike after they have made it an internet focused strike. And really, I don't expect that they will want to. This is the deal they were, kinda, waiting for.
It seems to me that WGA is getting the fuzzy lollypop from AMPTP, which has been privately willing to make this deal since WGA put it on the table a month ago, but waited for DGA in order to, 1) embarrass WGA, 2) squeeze in that 17 day window, which is probably where they make the most money currently, and 3) give more time for force majeurs, and 4) embarrass WGA.
This strike will not be remembered fondly. But the fact is, WGA (via DGA) got more than a lot of people thought they would - even though they haven't done their deal yet. The only question is how SAG will feel about it. And you know... they will probably bend to it too.
I wouldn't be surprised to see a WGA deal before Sundance ends.
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Key Details
Ad-Supported Streaming:
- 17-day window (24-day window for series in their first season).
- Pays 3% of the residual base, approximately $600 (for network prime time 1-hour dramas), for each 26-week period following 17-day window, within first year after initial broadcast.
-Pays 2% of distributor’s gross for streaming that occurs more than one year after initial broadcast.
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Electronic Sell-Through (Paid Downloads)
* More than doubles the rate currently paid by the employers on television programming to .70% above 100,000 units downloaded.
o Below 100,000 breakpoint: rate will be paid at the current rates of .30% until worldwide gross receipts reach $1 million and .36% thereafter.
* Increases rate paid on feature films by 80% to .65% above 50,000 units downloaded
o Below 50,000 breakpoint: rate will be paid at the current rates of .30% until worldwide gross receipts reach $1 million and .36% thereafter.
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Distributor’s Gross
* Payments for EST will be based on distributor’s gross instead of producer’s gross, a key point in our negotiations. Distributor’s gross is the amount received by the entity responsible for distributing the film or television program on the Internet. We would not have entered the agreement on any other basis.
* Companies will be contractually obligated to give us access to their deals and data, enabling us to monitor this provision and prepare for our next negotiation. This access is new and unprecedented.
* If the exhibitor or retailer is part of the producer’s corporate family, we have improved provisions for challenging any suspect transactions.
Posted by poland at January 17, 2008 03:24 PM
Comments
the real interesting part of the deal is that it requires the studios to open up their books and allow a transparency heretofore unheard of.
i, too, think this is a hard deal for wga to pass up, but they haven't gotten this deal yet. let's see how else the amptp is going to try to "punish" them.
Posted by: hendhogan ![[TypeKey Profile Page]](http://www.mcnblogs.com/thehotblog/nav-commenters.gif)
at January 17, 2008 04:06 PM
As much as I would like to see a WGA deal by the end of Sundance, the amount of vitriol about this deal quickly/knee-jerkedly appearing online -
http://www.newsfromme.com/archives/2008_01_17.html#014663
https://www.blogger.com/comment.g?blogID=2462026865900537983&postID=7423436176146058984
- among other places, makes me think this isn't as quick a slam dunk with WGA'ers as many would hope it to be.
Posted by: SJRubinstein at January 17, 2008 05:52 PM
I am becoming extremely concerned, particularly having read Mark Evanier's preference for remaining on strike, and having read the multiple negative and hostile posts at United Hollywood. I'm amazed at the number of people who seem to be angry at the DGA and who don't wish to take much time to consider this deal before condemning it. I'm hoping that those comments reflect a more hardline position than will prevail. But it's still quite disturbing.
I was actually both surprised and shocked to see the DGA deal come in this quickly. That was after 5 1/2 days, which has to be an industry record. I believe it shows that both sides felt some urgency to get this strike over with and get back to work. If the WGA and SAG can follow this pattern, then this whole thing could be over quite soon. But if the hardliners rule the day, we're looking at August. Right now, it appears to me that the WGA will not be accepting this as a pattern, in the hope that they can somehow get a better pattern by waiting for the SAG contract. Given that SAG does not even have its negcomm together yet, those talks can't even happen for another month.
Posted by: Working AD at January 17, 2008 06:46 PM
it's not a particularly great deal, sort of like the 1985 low residual rate. still it is a deal, double is double. despite the fact that writers supply directors with material to direct, no one seriously expects them to get more, or strike for more, the writers know their place in the rigid caste system of hollywood. and this is the stick to beat the uppity 'bastards' back into their place.
{roll eyes}
Posted by: movielocke at January 18, 2008 01:40 AM
Hollywood can't write this stuff (well, not at the moment). The writers came off like whining, petulant teenagers (stereotype a) and the producers came off as greedy corporate manipulators (stereotype b). That's a wrap.
Posted by: kidkosmic at January 18, 2008 04:57 AM
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