Over the next days, I’d like to float several suggestions for moving the WGA-AMPTP strike talks out of the axis of paralysis they’re in now. I’m not presuming to act like a know-it-all. But like any journalist covering the business of Hollywood I spend all day talking to very smart people (as well as a lot of mouthbreathers) who make up all facets of the entertainment business, and what I’m about to write reflects their expert opinion and analysis which I can’t just ignore. I’ll update this thread of thought throughout the evening (because I have many different points to cover), plus my Day 3 strike notes:
It was oldtime movie mogul Louis B. Mayer who thought Hollywood a bizarre business because “the assets all go home at night”. On the other hand, only a handful of industries can boast assets who double as cultural icons. I’ve been hearing from a cross-section of entertainment power players that a new paradigm needs to emerge out of the wreckage of these pre-strike AMPTP/WGA negotiations. Call them actors and directors and writers, call them showrunners and hyphenates, call them by the umbrella term “mogul artists,” these are the 25 to 30 Hollywood icons who have incredible leverage in this town because of their big and small screen personas. They use that clout for their careers, and philanthropy, and social causes and political candidates. But they rarely use it for the greater good of the business of Hollywood. (If they did, they’d start by relieving everyone of having to endure a mind-numbing Academy Awards broadcast year in and year out. But I digress…)
By contrast, the moguls huddle regularly on industry issues like financial syndication, ratings and piracy and compete but also compromise with one another because lawsuits entail the airing of everyone’s dirty laundry. But the only time I’ve ever heard of Hollywood CEOs caving on a major negotiation is when they get in the same room with a Steven Spielberg, or a Tom Hanks, or an Adam Sandler, or a Judd Apatow, or a Shonda Rhimes, or a J.J. Abrams, or an Akiva Goldsman. There’s just something so needy within the Hollywood moguls’ psyche that they want to be liked and respected by the creatives they in turn like and respect. (I assume this is why these businessmen make TV and movies instead of toothpaste and mattresses.) Therefore, any professional, personal and even psychological pressure put by these top-of-the-heap artists on the studio and network bosses could make all the difference in the guild contract talks being held now and in the very near future. Some of that is going on, but not enough.
Sure, Hollywood loves to make fun of agents. But I’ve received countless calls in recent days from partners in the tenpercenteries panicked that their companies can’t survive a prolonged walkout. This is especially true of the so-called “second-tier” agencies. One of those toppers told me he’d been thinking of retiring anyway, but now he’s filled with angst that his company’s doors may have to shut permanently. So because they have so much at stake, I say, “Bring On The Agents”.
For crissakes, these people negotiate for a living on behalf of clients like the writers. And they’re licensed by the state. And they make multi-million dollar deals based on their word. They could, under the auspices of their Association of Talent Agents, mediate this dispute. Look, I respect these guys. I have confidence that they could work out a proposed settlement lickety-split which at least could provide the basis for bargaining. What everyone’s forgetting here is that one of the reasons Lew Wasserman could solve Hollywood labor strife was because he was an agent long before he became a studio mogul. I say put the board of the ATA and the major moguls together, sideline Nick Counter and Patric Verrone (who rightly or wrongly are increasingly viewed by the other side as the problem, not the solution, because of personality issues), and let the negotiating truly begin over lunch at The Grill and golf at Riviera Country Club.
Today, the media keep asking me how long I think the strike will last. So I’ll say it here. For all the reasons I’ve already reported, both sides in this fight are further apart than they have ever been, and that’s saying a lot. Both sides believe they have fresh and ample reasons not to go back into negotiations anytime soon or even backchannel. They claim they can’t trust the other side enough to talk about scheduling new AMPTP/WGA negotiations much less trying private talks. But backchannelling has been the only successful way labor strife in Hollywood has been settled in the past.
So now I’ll bottom-line this: Really smart people have told me that if this walkout doesn’t settle in the next few weeks, say, by December 15th, then there may not be an incentive for the moguls to settle it until June when the Screen Actors Guild contract expires. As for the Director’s Guild, whose contract is up next June as well but will settle it sooner, everyone expects the DGA to fold like pup tents: no shocker there. In film, the studios prepared for this labor action starting two years ago. But I broke the news pre-strike that the Big Media and Hollywood CEOs viewed this TV season as a total loss and welcomed the walkout as an automatic “do-over” that would allow them to regroup and then refashion their business models. At the same time, the writers guild two years ago began to draw a line in the sand on New Media and Internet which they’re etching deeper with every turn on the picket line. I’m not passing judgment on whether either of these positions is right or wrong. But I am saying that this is a horrific situation. Yes, it is.






Ah, Nikki. Ever the optimist.
Where’s Hollywood’s favorite son? No, not Tom Hanks, the Governator!
He’s the only one with the clout, the pro-busines and pro-talent reputation, and the power to solve this.
His office said today they don’t want to get involved. Tell him as a voter you will not vote for him ever again if he keeps that stance and that you want him involved right now!
If you’re a California resident and a voter, fax his office at — (916)445-4633 — and tell him to get off his butt and back to Hollywood so all his old friends can get back to work.
A couple of reactions to this piece, Nikki. First, I think the moguls tend to hate agents even worse than they hate the talent. Second, I’m all in favor of Nick Counter being removed from the negotations. But why sideline Patric Verrone? Patric is not the WGA’s chief negotiator.
I agree. Bring on the agents.
Can anybody in here explain the outcome and impact of the SAG-ATA negotiations of 2002?
When I heard about the events of Sunday last (thank you Nikki) I’d hoped that Moonves and Chernin would be so pissed off at the incredible betrayal of THEIR trust that they would “go medieval” on the AMPTP, not that they were in collusion or otherwise faking out the WGA. (And next time you use a phrase like “go medieval,” remember that it was made up by a screenwriter.) How much egg is on the moguls’ faces? Wouldn’t simple ego force them to rein Counter and company in? Don’t they have any pride? So what the hell. Bring on the agents. And if that doesn’t work, maybe a tactical nuke would get someone’s attention.
Bring on the agents, the politicians, and anyone both sides trust to bring cooler heads to the room. Nikki, I appreciate your focus on SOLVING this problem.
That being said, one thing I constantly hear from the mogul side, is that it’s “too soon” to fight over the internet revenues because their revenue models haven’t been figured out. That’s kind of a tough sell, but not completely without merit.
So why not compromise with that a little? Do a three year contract that steps up the residual rates every year as they “figure it out”. Because I think we all know that they will.
So why not make the concession of giving them the .3 they are offering for year one of the contract. Second year, it steps up to a larger number that both can agree upon (maybe .8, or something). The third year, it settles on the number the WGA would probably take as a middle number to their 2.5 starting offer…maybe 1.1?
Look, I know I have no business suggesting negotiation tactics or numbers because I’m a nobody. Let the smart people figure out the real deal. But doing something like this would let both sides save face, and let both side claim victory.
Just a humble suggestion that I hope to god other people have made other places.
Nikki
I am astonished by your post.
Don’t you hear the writers? Anyone in the WGA is entitled to a living wage from the studios regardless of whether they have any talent or merit. Do you know that the majority of the WGA makes less than $20k a year? Yes it may be that they suck, or are just old and annoying (Hi Carl Gottlieb!) but each and every one of them should be hired and making money. We are doing it for them. Never mind the market forces. Never mind reality. This is for the future. This is for Joe at Astro Burger who one day can write the next MANIMAL for NBC. This is for the 19 cents due Ken Levine. Sure- dozens of hardworking peons have already been fired this week under suspended deals. But we don’t care. We’re writers dammit and personal hygiene and other people don’t matter. What matters is making sure even the untalented among us get respected!
does any other writer feel like a pawn in a very pissy chess game? chanting stupid chants while walking in circles like elephants at the circus is ridiculous. the teamsters have better chants. i am a writer who wants to support my union but i really hate feeling like i’ve been manipulated and coerced, and that’s exactly how i feel. the main issue is new media, but let’s be honest, how many of the wga writers are really going to benefit from this? it’s shocking to me to see how easy it is for my brethren to get worked up into a frenzy over abstract, intangible issues. we all know that people who have talent and work hard make money in this town. period. have we all been coerced by peer pressure? afterall, they do say hollywood is just like high school…
Agents don’t negotiate on behalf of their clients; they negotiate on behalf of the people that PAY their clients. They want to keep making money, so they serve the studios and production companies first.
Just got off the picket line at Sony. Still a good turnout and the energy is up. I think the newness of all this is still propping us up. I’m not sure what will happen as this drags on. The odd thing is that nobody seems to be anticipating anything other than more walking on the line. The first day there was a lot of speculation and some optimism but that talk is almost all gone. What I am starting to see is the attitude that “we” can beat “them”. As we start to march with the same folks (and most of us are meeting our fellow writers for the first time) it starts to feel like the strike actually could carry some weight. Or maybe that’s just my impression. Regardless, I think this strike is going to hurt a lot of people, but most of the writers feel like it’s the right thing to do right now.
Excellent idea, Nikki. I was having this exact same conversation today on the picket line. The only problem is…it makes way too much sense. They’ll never go for it.
I’m shocked that they can’t just “agree to disagree” and keep everyone working until a new contract is settled. Once settled, why not just pay retroactively to 11/1 when an agreement is reached. It seems too much like greed and ego are taking over right now, when the other 99% are the ones who need to keep their jobs and families in tact. Both parties would get more support without killing the business and the local economies in the short term.
I am a tv agent. I would be happy to work on this. If empowered, I am sure a deal could be made. Remember, artists pay agents 10% to provide a buffer between talent and studios … now we see why that’s important.
Guild members need to pressure their union leaders to make the effort to get back to the bargaining table and pick up where they left off – no matter how betrayed they feel! With the exception of a few writers who can really ride out the strike until June, noone WANTS to strike! Writers come to the picket lines, sign their names, then leave after twenty minutes! United front my ass! The leadership of the studios are constantly in question – well I am a writer and questioning OUR leadership! Get back to the bargaining tables already!
I believe that everyone (especially the writers) would like this strike to be over. I think it’s time for the AMPTP/WGA to return to the bargaining table and truly work towards an equitable resolution. As dvds, and even television (as we know it) fall into obsolescence, it’s important to give the WGA a percentage of the internet/new media pie.
I remain hopeful that the fact of having to address the utter destruction of a huge economy will drive the producers and the writers together, averting a complete catastrophe for the thousands of families who will be thrown into chaos were the strike to go on as long as next June. The CEOs, though wildly disconnected from the realities of American life (Mr Redstone et al hardly strike me as having a sense of the “American street”). They might balk at the inefficency of having a disgusted consumer base, already adrift and feckless about watching stuff we all make, while having to endure the probes into their role in recreating Grapes of Wrath under the palm trees. Even the producers I talk to wonder if Nick Counter is suited to this task. Nuanced, he is not, and credulous, the WGA is, or was. After last weekends’ typical sounding cluster-fuck, the sound of the ticking clock started to seem more like the sound of a heart racing before an infarction. So now the big question is this: Is there a single statesman or woman in this country (forget this business) able to force both sides to search for common ground? Because something’s gotta give. The endgame being played here is like the Bosnia-fication of the film and televisoon industry. We are supposed to be civilized people. Even that premise is debateable today.
Good lord. It’ll be a blood bath.
Putting both Verrone and Counter on the side allows for (hopefully) a tempered negotiation. Nikki’s got a great idea.
Whether hated or loved, who cares? Let’s face it. What’s a negotiation in Hollywood without an agent involved?
It’s like trying to shoot a picture without actors. Come on, people!
NEGOTIATE ALREADY!!!!!
In response to Tom “…I think the moguls tend to hate agents even worse than they hate the talent.”
Who cares about love and hate? This is a negotiation. As one of the “Veteran Agents” who survived the strike of ’88 I say let me do my job!..
Thanks, Nikki.
To Tired Feet.
You have never been more correct. This will hurt a lot of people. Just not the ones you want. It’ll be crew people. People like me. In another few days, everyone will be picketing in front of boarded up studios, everyone inside laid off. Good work.
I agree. This schoolyard brawl must come to an end immediately… The Agents could be the answer. Why not give them a shot? The fact that there are no negotiatons going on right now is… shameful. This is not a game. Pride must be put aside. Careers and livelihoods are at stake.
If it is not settled by Dec. 15th then “there may not be an incentive for the moguls to settle until June when the Screen Actors Guild contract expires.” This is outrageous!!! What more incentive do they need? Decent, hardworking people are going to lose their jobs, possibly their homes! The entire town will be crippled. Do they have no compassion? No humanity? Is there anyone in America that can side with these myopic, cold-hearted “moguls.” With a position as intractable and unreasonable as theirs, is it any wonder that they are not engendering any sympathy with Hollywood (except Variety) – and with any level-headed American following this story?
I have been reading Nikki’s work regularly for the last week and still do not understand what the “moguls” want. Do they really just want the writers to get nothing for the internet? Really? Are they that “stupid” – as Eisner so eloquently put it. The writers have been reasonable and fair. Maybe the studios look at what has happened in the music industry and are running scared. Is that it? The big bad “moguls” are afraid of the interenet. Perhaps it’s simply unbridled avarious and greed. If that’s the case… then it is the AMPTP and the studios that need to go away… Bust the corporations, not the union!
Robbie, I think you’re on to something. Senator Obama was fast off the mark with his support for the WGA. Maybe he could step in and lend a hand to the negotiations. It’d be good practice for dealing with internationalsquabbles and he’d look like a hero. What’s Jimmy Carter doing right now?
I was at the Showrunners gathering today at the Disney gate. They all seemed both unified to wait this out but many of them were very shocked and a bit dismayed suspension letters were already sent out from the Studios. It’s hard to know how long this will last but I’ve never seen a group so galvanized. We’ll see who crosses the line first.
Although I agree that the Moguls hate agents more than they do the talent, the suggestion has a lot of merit simply because it would show the extent of the economic disaster that this strike is about to inflict, if it hasn’t already. The Moguls are so completely out of line and everyone knows it. Their pettiness and arrogance (as well as their inability to actually build a coherent and solid business plan for media distribution of the very near future)is almost unbelievable, if it weren’t true. In truth, agents have as much to lose in this fight – not once, but twice once the SAG strike starts – and despite the fact that they most often the butt of some very funny jokes, Agents and the agencies are a very large part of this economy. Theirs is a vested an interest in resolving this fight as any of ours. They are part of the economy. And they are professional negotiators.