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.
Editor-in-Chief Nikki Finke - tip her here.







If this strike lasts until June, the Guild will fracture. Perhaps irreparably.
The sad truth is this: as writers, we don’t have much power. Sure, we can shut down some shows but is that really going to force these massive, diversified conglomerates to buckle? Don’t forget, we’re negotiating against the likes of Rupert Murdoch.
What’s particularly distressing is that as this strike continues, many of our fellow writers’ expectations will increase proportionately. In other words, if we wait until June, then the deal we get better be pretty fuckin’ great.
Unfortunately, that’s not the way these things work. The reality is that we’re gonna most likely get the same shitty deal in June that we would’ve gotten this week.
We work in a business. While we may be artists, we work for businessmen and, for them, we are a commodity that’s bought and sold. I don’t begrudge them this either. In fact, I cringe every time I read some post about the greed and ruthlessness of the producers. Sadly, they’re doing their jobs. This is what they do. They are making what they consider to be sound business decisions.
Are we?
Was this strike a good business decision or was it an emotional reaction to what we perceived to be a lack of respect?
I know that for me and my family, striking was a very tough business decision. I would rather have continued to work as the contract was negotiated.
I applaud Shawn Ryan for “giving up” working on The Unit, The Oaks and on the final ep of The Shield. You know what, though? Those are just fuckin’ television shows. I’m giving up my mortgage and things that my family needs to survive.
One would hope common sense would prevail and Nikki’s hypothetical would be the most logical way for a quick end. Unfortunately, the brass on both sides (while each making great points) are so entrenched that logic and common sense are out the window and are going to make this strike reminiscent of the NHL work stoppage of 2005 in which no one really truly wins.
Again, I’m just a stupid college student and could be wrong.
P.S.: Nikki, keep up the excellent work!
“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”
I believe this is the bottom line and it’s been used in other industries and businesses prior to this situation.
What’s the answer..?
Pressure. And more of the same. And honest hard facts laid out for everyone to see. No more slipping the DVD issue off the table. The final line in the sand must cover ALL existing medias and future medias so there are no end-runs by attorneys with too much time on their hands or hands in someone’s back pocket.
Hmm… I thinks it’s time to watch “The Player” again…
Certainly it would nice to get the sides back together to negotiate. But Nikki, based on your reporting about events of Sunday night, it doesn’t sound like the producers are willing to negotiate right now. So what good would it do to have agents mediating with only one side that’s willing to give anything?
And now, a poem (rearranged and based on an Etheridge Night poem of the same title)
FEELING FUCKED-UP
Fuck love, fuck hate
Fuck the WGA, AMPTP, and the strike
Fuck moguls and studios and private jets
Fuck writers, agents, producers, actors, showrunners
Fuck Nick Counter and Patrick Verrone
Fuck YouTube
Fuck Steve Jobs, iTunes, Bill Gates
Fuck Hollywood and Rockefeller Center
Fuck Jay Leno and God and Malcom and Allah
Fuck Arnold Schwarzenegger, Lew Wasserman, CAA,
Fuck God Jesus and Hillary and Obama and George W.
Fuck Starbucks, Krispy Creme and Variety
Fuck the palm trees and the sunsets and the fires
Fuck money and backchannel talks and the industry and the whole muhfuckin’ thing
All I want now is my 3-year WGA contract back
So my writerly soul can sing
For the posts that lash out at the writers with “thanks a lot” and such, you should be lashing out at the studios and the networks – THEY are the ones who won’t give an inch – we have tried – we have compromised, we took off important proposals from the tables – we do not want this strike – we do not do this lightly. So get mad at the moguls who won’t dare bend. But let’s be honest, aside from crew people, most of the writers will also be economically destroyed by a long strike – there are many big time producers and showrunners who can ride it out, but many of us – like me – have small kids and I even have a wife who is seriously ill – so after two, three months, I really will be in big trouble. That’s why WHILE WE ARE STRIKING, we don’t care what it takes – get back to the bargaining table, Mr. Verrone.
AMPTP keeps claiming it’s too soon for internet revenues?
Keep telling yourself that…
From Nov./05.
http://slate.com/id/2129003
I agree that the agents should be brought on board to help with the negotiations, although that would present its own set of problems, wouldn’t it? Specifically, WHICH agents would do the negotiating? Anyone who would let Jeff Berg negotiate on his behalf would have to be asking for career suicide. And you couldn’t just say “the partners,” because Endeavor has as many partners as UTA has agent trainees. But it does seem like if you got the heads of the top 8 agencies to threaten to withhold the services of ALL of their clients, then you could essentially put a stranglehold on the “moguls” since they would have virtually no one left with whom to produce content. On a final note, it’s easy to view the “moguls” as the face of corporate america and therefore the “bad guys,” but don’t forget that even the moguls answer to the shareholders, who really don’t grasp the issues and probably don’t care because they’re so disconnected from everything.
We are only at Day 3, yet many of us already understand why a strike should have been the last option — we had far more leverage with the threat, which is why some progress was being made on Sunday. Now that we’ve fired our most powerful weapon, we are at the mercy of the studios and look how that is going. “24″ was just cancelled for the season in a press release. Those lost jobs are not coming back anytime soon.
It’s great that the “showrunners” are unified, but most of them have been working under seven figure overalls and, unless they are complete spendthrifts, they should be able to weather the storm for quite some time. But — they are a distinct minority in the WGA and in all of Hollywood for that matter. The rest of us are going to be suffering very soon. Unfortunately, many of the writers are naive and I fear that the Writer’s Guild and its members are going to be crushed unless something is done soon. I was not surprised to hear that many showrunners were “shocked and dismayed” their deals were suspended — they, like many others, have underestimated our adversary.
On a related note, a friend of mine is a very successful entrepreneur. He believes that no wise businessperson would “give away a piece of a business before understanding what the business is.”
With that in mind, it seems clear that the solution to the internet issue can only be interim at this point, until that business is better understood. We need to start thinking more creatively about solving this — simply lobbing absolute numbers at one another is not going to get this done anytime soon.
I implore the forward thinking leaders of our community to get back to bargaining at once. And I don’t think Nick Counter or Patric Verrone or David Young can be counted in that group at this point.
To the real writers — clearly a number of these ‘disgruntled writers’ are bogus. The studios hire people to enter chat rooms and hype their movies as regular film goers (not rumor, fact), of course they’re going to employ a similar tactic with us. The derogatory way they describe the striking experience is a dead give away — some lame PR flak’s idea of how to sew dissention.
Unfortunately, it seems the AMPTP wanted a Strike all along. They never responded to the WGA core issues presented 6 months ago up until the bitter end and obviously played a “let’s see their hand” by duping the WGA with a false offer on Sunday which they reneged on. In short, they never really negotiated what is a very simple deal which would keep this town running and their profits humming.
Okay, so, they (AMPTP) can now use “force majeure” to clean house but that seems like a pretty lame strategy… they can clean house anytime they want to. And the TV season was a do-over anyway? What’s the point of that, simply cancel shows and spitball new one’s onto the market, so that really doesn’t hold water either…
So what does this leave? IMO, only a stategy to break unions and weaken their resolve and eventually their bargaining position. This is pure cold greed. Now this stategy it seems has backfired as the Unions are now stronger and gaining more support by the hour.. plus now the AMPTP has been tipped their own hand to SAG, so it won’t get any easier from this point on.
If anyone is to blame, it has to be Counter and the AMPTP… Why? because they never negotiated in good faith with WGA.. ever. Now I hope Counter is getting his passport in order and drawing cold stares throughout every fancy restaurant in town because he is indeed the bad guy here… he shut it down.
So, “Say good Night to the Bad Guy”. Counter has to be removed, he poisoned this town and is turning Public Opinion against the egg faced Moguls.
Other Notes: Don’t expect the Governator to get involved and if he did, it would be to help the Moguls, same as some well noted Ex-Presidents who fly out here every other Month to scoop up coin from the Moguls.
Was on the line today doling out granola bars with several of my clients at Warners, Paramount and Disney (during the United Showrunners portion)…by the way the tacos were excellent…
To a person everyone involved are WAITING for the agents to come riding in on their not-so white horse to bring these hot-headed people together. This is why studios have biz affairs execs, and talent have agents, we know how to negotiate without ego…PERIOD.
I’ve spoken to several agents both in and out of the agency I work at, and to a man (and woman) we feel we could solve this thing in a matter of hours.
Verrone and Counter (especially Counter) need to step aside and let the lawyers and agents take it from here. Hell, let’s get Ari Gold in a room with these guys, he’ll have them not only working with each other, but paying him a lofty commission as well.
Get this done before the holiday, and let’s not have a worrysome Xmas and Chanukah.
Bounce, castle, bounce!
Nobody’s saying writers have to be hired. Neither are they saying they have to be talented, in the sense that they can write clear, effective sentences. They’re saying that, if they are hired they should get paid according to the contribution they make to the bottom line. If Joe down at the Astroburger (who would not wear that funny hat and flip those burgers for free, either) can write the MANIMAL episode people want to watch, the producers will hire him — they have to. “Talent” in entertainment writing means one can put on the page whatever causes a lot of viewers to watch something no one really needs to watch nor is forced to watch. This is a special talent not guaranteed to anyone based on class, wealth, looks or intelligence. Looking good, smelling good, being able to write strong English prose (which you seem to be capable of and, who knows, you might even be attractive) have nothing to do with gluing eyes to the screen which is the business. Try to be practical here.
Re: length of strike = better deal – The NHL was out for a whole season and the players got a worse deal than the last one that was offered before the work stoppage.
What is most troubling to me is that it’s the IATSE crew members who are going to get hit the hardest in this. We don’t have any residuals or profit participation. Just an hourly wage. Although I understand the principal, it’s seems the writers are a little too . . . . giddy about their enthusiastic movement. It may be fun to cause a scene and get cookies and pizzas delivered by movie stars but in the meantime I am at home looking at my meager bank account and getting really freaked out. I hope calmer heads prevail and soon.
Thank God this won’t affect the new Star Wars TV series.
Lucasfilm is non-union:)
can you name an agent or agents who have the depth of knowledge and sense of the community that could carry the torch for the writers. not sure their is such a person alive and able to handle such a “huge problem” in this day and age of the agency business.
to those of you venomous, uninformed, hysterics (Bouncing Castle, Julius Fort, etc) who keep railing incoherently against writers, your anger is misplaced and should be directed at AMPTP – don’t scapegoat the writers. It’s the “moguls” raking in obscene salaries, and even more obscene salaries when they fail. It’s the “moguls” (and movie stars – another group towards whom you can direct your jealous anger over inflated salaries) whose mansions in Malibu were ablaze as that other irrational commenter/shill irrelevantly pointed out. Most importantly, it’s the AMPTP who caused the strike, the job losses. Lastly, it is truly unfortunate for those who lose jobs, but direct your anger to the correct source of the loss – AMPTP. And, also to those who blame writers for their job loss, perhaps you should select a more stable industry in which to work. One thing Hollywood is not is stable – shows fail, shows are canceled, films go into turnaround, unions strike. Don’t take jobs that are subject to union strikes. You want to work in Hollywood and benefit from the positives – you can’t have it both ways.
Well said Nikki. Bravado and a positive attitude is wonderful, but people have to remember, these negotiations will set a precedent for SAG and that might be the most frightening thing to the studios. They are entrenched in that fear.
And I’m sorry, but someone has to step forward and work to resolution. So, let the WGA extend an olive branch by bringing in the agents to help.
And stop stomping your feet and calling each other names, both sides!! This is not an intelligent way to run a negotiation.
I also agree with the comments that if it goes into December, it will go to next summer and I too believe it will break the Union. You want to talk about the future? Well, the future WGA members can’t afford that.
Be smart, both sides, not obstinant.
What are we writers doing right now about Showrunners who scab? Why aren’t we outing these folks for siding with the studios? IT IS HAPPENING.
It’s time to name names and circle the wagons against these folks. We need a forum where folks can report on showrunners crossing lines.
Bravo to Nikki for exploring solutions. Agent intervention is intriguing at face value. However, agents don’t commission residuals. Except for the few agents who grasp the bigger picture and who are true to their role as client advocates, agents won’t be motivated to fight for something they don’t commission.
I’m under the impression that the companies’ goal here is to eliminate residuals. If that’s true, then they have no reason to negotiate any kind of compromise on internet revenue. They want to starve us until we cave completely. And if the film side has been preparing for this for 2 years, and the tv side considers this season a rebuilding year, then I think we may be completely screwed.
I think we all have to come to some serious real world conclusions here.
There will be no significant residuals coming from the Internet.
Why? Because Google, Facebook, Myspace, Yahoo, and Youtube don’t pay (if any) significant residuals on the internet. AND THEY NEVER WILL. NBC.com, ABC.com, CBS.com… who even goes to these websites… they are not going to saddle themselves with a whole bunch residuals that other websites are never going to have.
Not to mention that there are infinite amounts of ways to get our content for free, and new ways are being developed daily. Forget “The Office”… I just saw a perfectly good streaming copy of “American Gangster” the other day, BEFORE the movie came out. The one clicks (Megaupload, Zshare) have arrived and they are coming for you.
So we were angry about the bad deal on DVDs, and because we’re mad about that, we went all out for some revenue stream that no one’s figured out yet.
Everything is going to the internet. listen and listen closely. THE INTERNET IS NOT OUR FRIEND. We just hastened the inevitable.
We doubled down on a pair of twos. And the whole time, the studios saw our cards.
It’s a nice thought but the flaw in the logic is the idea that agents could agree amongst themselves who could/should/would lead and who follow. It would take until June for the various big dogs in town to battle that threshold question out, then maybe the survivors could start trying to settle this thing.
This strike will have to be settled the old fashioned way, those who started it will have to find a way to finish it.
PowerRanger:
I categorically believe that despite the fact that of course there are strong emotions involved, this was a business decision. The part that’s hard to take is that it may not involve you or I recouping all the money we lose in this thing. It is for now, and it is also for the future. The now may lose some.
The reason it is a business decision can be best explained by this guy:
http://www.youtube.com/watch?v=beMNePzqpzQ&