Turnabout is fair play. The general concensus is that the Alliance For Motion Picture & Television Producers is pursuing a “divide and conquer” strategy towards the striking writer. So the WGA is now saying that two can play that game. In fact, starting as soon as Monday. But will the Hollywood moguls take up the offer if it means they’re ostracized from the CEOs club (no tee time foursomes at Riviera or Bel Air Country Club) because they put shareholders before Big Media colleagues? I fear the answer is no. Because agents are telling me the Reality TV orders are coming in fast and furiously from the networks, who are clearly digging in for a long seige even it means scrapping most scripted series’ Back 9 and even pilot season. Here’s the latest WGA statement followed by the AMPTP’s. (See below for my analysis and read my previous, The Line To Break Mogul Ranks Is Here…):
A Message to the WGA Membership from its Negotiating Committee:
As you know, the AMPTP is currently unwilling to bargain with us. The internal dynamics of the AMPTP make it difficult for the conglomerates to reach consensus and negotiate with us on a give and take basis. We believe this multi-employer structure inhibits individual companies from pursuing their self-interest in negotiations. We nonetheless continue to hope that the AMPTP will return in good faith to negotiate a fair contract with writers, as two television seasons and numerous feature projects are currently at great risk.We want to do everything in our power to move negotiations forward and end this devastating strike. We have therefore decided to reach out to major AMPTP companies and begin to negotiate with them individually. As you may know, bargaining on a multi-employer basis through the AMPTP is an option for the WGA, not a legal requirement. Each signatory employer is required to bargain with us individually if we make a legal demand that it do so.
We will make this demand on Monday December 17th and hope that each company responds promptly, in accordance with the law.
In the meantime, we urge you to support us and our negotiations team and leadership during these difficult times. We look forward to a making a fair deal that will resolve this strike, protect our future and put us all back to work, for the good of the industry and all of its employees.
Signed,
John F. Bowman, Chair
John Auerbach
Neal Baer
Marc Cherry
Bill Condon
Carlton Cuse
Stephen Gaghan
Terry George
David A. Goodman
Carl Gottlieb
Susannah Grant
Carol Mendelsohn
Marc Norman
Shawn Ryan
Melissa Salmons
Robin Schiff
Ed Solomon
The AMPTP predictably poured cold water all over the idea:
Alliance of Motion Picture and Television Producers spokesman Jesse Hiestand
issued the following today in response to a statement from the WGA negotiating committee:
This is merely the latest indication that the WGA organizers are grasping for
straws and have never had a coherent strategy for engaging in serious
negotiations. The AMPTP may have different companies with different assets in
different businesses, but they are all unified in one common goal — to reach
an agreement with writers that positions everyone in our industry for success
in a rapidly changing marketplace.”
The issue at hand is whether the WGA can exploit the lack of unanimity within the mogul ranks on how to proceed with the AMPTP-WGA contract talks. For one thing, not all their agendas are the same: there are the mostly movie studios, the mostly TV networks, and the studios that own networks, and the networks that own studios. But here is what Big Media consolidation has wrought: Brad Grey, for instance, can’t just do a Paramount-WGA deal because he has to take into account Les Moonves’ opinions even though Viacom and CBS are supposed to be separate companies now. (Trust me, Grey can’t do what Moonves doesn’t want him to do. For instance, Moonves is planning to make movies, but Grey recently let go of his chief TV exec.) Nor can Universal’s Ron Meyer because of NBC. So the handful of CEOs who normally trash-talk one another are now comrades in arms.
I’ve said this before but it’s well worth repeating: In the old days of guild talks, the AMPTP was made up of hundreds of honest-to-god independent producers But they went by the wayside when financial syndication rules were eased. So now there’s no Aaron Spelling or Carsey Werner in the mix at the AMPTP telling Big Media to play nice.
Starting back on December 3rd, WGAW prez Patric Verrone called on the more moderate CEOs to break ranks with AMPTP which he claimed is “allowing bottom-line hard-liners to rule the day.” I’ve heard top WGA’ers privately refer to this as the “Let’s Make A Deal” strategy. But it hadn’t been articulated in public until then. “If any of these companies want to come forward and bargain with us individually, we think we can make a deal,” Verrone told AP while conferring with picketing writers at NBC in Burbank.
I find it that the moguls may not have the strength of character, the commitment to their shareholders, or, let’s face it, the balls of steel necessary to go against The Club. For weeks now, I’ve talked to several CEOs about why they don’t deal individually with the WGA. After all, the car companies have a lot in common, but they still bargain individually with the auto workers. But Hollywood studios and networks are colluding, not competing.
Sony and Paramount are primarily in the movie business. Why not get their films restarted? NBC has been in the cellar ratings-wise. Why not leap-frog other networks and ensure the Golden Globes go off without a hitch? Then there’s ABC: doesn’t it have the most to lose with most of its Nielsen Top 10 series in primetime not to mention the Academy Awards? And do Fox’s rivals really want to cede January to May ratings to Peter Chernin?
Any network that does a deal now could save the Back 9 of scripted shows not to mention pilot season. Any movie exec could finish the 2009 slate and move on to 2010. Makes sense, right?
But when I raise this possibility, the CEO’s answer is an audible shrug, followed by stammering and a simple, “I just can’t.” Time to upset protocol and break ranks.






The trades delight in every rumor of dissent and disillusionment on the writers’ side. Let’s see if these cracks in the AMPTP armor get the same kind of front-page coverage.
Maybe the WGA should hire Will Smith to negotiate a deal. He’s more golden then Dela Hoya.
I mentioned this to some of the people I work with (in publishing), and their response was the first studio to even NEGOTIATE with the WGA will reap a whirlwind of good publicity. As in, “Studio X to enter negotiations with WGA – everyone else still refuses to deal with writers.”
Also, that studio would suddenly find themselves with a pipeline to ALL the content they want – which their competitors couldn’t have.
The moguls have declared war on the entire Hollywood Creative Community with their slash and burn negotiations. Meanwhile the networks are on a death spiral as a result. Let’s hope this will give the latter an out with the former so they can save their businesses.
This may be a biased opinion… but it seems to me that Nick Counter and the AMPTP are being soundly beaten at their own game. Whether it’s their, so far, disastrous PR tactics or the WGA’s continual resolve… it looks like Counter is consistently being undermined and made to look a fool. First, their shameful cry baby abandonment of the negotiations, then the hilarious mock AMPTP.com web site, next their total lack of readiness when the WGA filed a complaint with the NLRB and now the WGA’s move to simply ignore Counter and his merry band of bullies and move to negotiate with the studios individually. GO WGA!
What say you, all knowing Gavin?
- Sloop John B
The strike is good for Fox — which will pit Battleship American Idol against reruns — and bad for several other networks which depend on scripted programming. Rupert has strategic motivations to prolong this strike while he racks up viewers and advertisers, who may never go back to dramas and comedies on competitors.
Doing individual deals also brings on the possibility of creating resentment in the WGA. If a deal is struck with one AMPTP entity but not all, some writers will go back to work while others remain on the picket line, and the Guild will have to endure some grave tests of its unity.
Funny how Gavin Polone claimed to foresee everything that would happen during the course of this strike, but missed all of these latest moves by the WGA. With this in mind, and the failure of “Primeval” and “My Super Ex-Girlfriend”, is is apparent that Gavin is slipping.
Hey Gavin, do you remember what happened when the video game empire, Atari decided not to share the wealth and pay their game programmers what they deserved? I’ll enlighten you, smart ass. They lost their most valuable talent, their product suffered tremendously (remember the awful E.T. video game that forced children to tears and toy stores couldn’t give away), eventually consumers turned away and the competition moved in and gobbled them up. They lost millions because of their own greed and stupidity.
- Sloop John B
Now’s your time to really be Hollywood’s golden boy, Ben Silverman!
Let’s find out if you’re the real deal or not…
This new divide and conquer strategy is just a time waster. It won’t work because none of the studio group is feeling any heat after the 7 week strike. Their quarterly numbers are up, since operating expenses are down and revenue hasn’t changed. The talkshows coming back helps them. The fact that they can now terminate some deals offers a long-term gain to earnings. They think their reality schedules will perform well for, at least, a few months and their scripted schedules were performing badly before the strike. They all think the guild’s strategy has been irrational and weak and figure that they can achieve more leverage by making a deal with the DGA first and maintaining cohesion within their ranks. If there is an NLRB issue, they’ll play some lip-service but won’t make a deal.
Here are some questions I have for the working writers who have taken an income hit as a result of the strike: did you expect that this is where things would stand after 7 weeks of striking? Did you figure that the DVD residual would be off-the-table but sympathy strikes and reality and animation jurisdiction would still be in play? How much income have you lost during the past 7 weeks and how much more will you forgo during the next 12? What kind of increase will the negotiations have to yield in order for you to mitigate the loss of income you have and will suffer?
The route around this current impasse is not to negotiate individually; or file lawsuits; or send cartons of pencils to the studios; or continue with the “hey, hey, ho, ho…” silliness. The way to end this is to bring in a respected negotiator, right now, and have him hammer away at the only important issue left: Internet residuals. As I have said many times here on the UnitedHollywood annex, the rhetoric and hostility evidenced by the guild leaders has created a toxic environment in which to conduct a negotiation. A new negotiator, known and respected by them, will soften their resistance and allow them to feel good about giving up more on the Internet residual issues. They won’t feel like they were bullied into a compromise, which is how they would feel now if they acquiesced and why they won’t offer more.
This doesn’t have to appear as a failure on the part of the WGA leaders. It is a strategy shift that good leaders make as they assess how a contest is progressing. Lincoln supported McClellan for a long time but, eventually, replaced him. Without that shift, he would have lost the war and been remembered today as a failure. Verrone needs to attain some perspective. The membership needs to help him by quietly expressing their support for a new negotiation strategy led by a new negotiator.
Now, I know what will follow, as always, will be a volley of posts about how I am physically unattractive, without talent, a blowhard, the producer of bad product, a has-been, someone who has been fired by a talent agency and craving the spotlight. Let’s say all of that is true. What is the difference? Am I wrong about what I say above? Does it really hurt anyone to consider an alternate opinion? Have I been inaccurate in what I have predicted? Compare what has happened during the last week with my post from 12/7:
Here is what is going to happen:
The DGA will open negotiations with the AMPTP. They will close a deal and that agreement will be the basis of what all the unions will accept for Internet distribution. It will be better than the last proposal made to the WGA but not close to what the WGA has requested.
The networks will show to wall street that their net profits are up because of their reduced costs and despite any drop in ratings.
The talk shows, which are the only parts of the network schedules that have truly been damaged so far, will go back on the air. They will follow Letterman’s lead, probably around Jan. 7th.
The AMPTP will launch a publicity campaign featuring the suffering of those put out of work by the strike. IATSE will help with campaign. They will also put out more information about how much top showrunners and screen writers make.
Some movies will fall apart, others will come back together-in the way Brad Pitt dropped out of State of Play and Crowe stepped in.
Eventually, probably in the spring, the WGA and AMPTP will come back to the table, with the help of a government negotiator, and the WGA will agree to the Internet formula already negotiated by the DGA. They will give up on all of the reality TV provisions, as well as the “sympathy strike” stuff. Some small bone in another area, probably PH&W or minimums, will be thrown their way as a “face saver”.
Pretty much what could have been concluded now.
Comment by Gavin Polone — December 7, 2007 @ 8:11 pm
Dear Mr. “I just can’t” Mogul Coward,
You are in dire need of going to prison for your numerous anti-trust violations. The carrot of individual studio bargaining is good but it won’t be enough. This needs to be elevated to the legal arena immediately.
WGA has to authorize those lawyers in Pasadena who filed the labor relations complaint to take the next step and file a class action lawsuit against all the studios and networks charging them with collusion and violations of the Sherman Anti-Trust Act which would then bring in Congress they’d have to hold hearings once such a lawsuit is filed in federal court. Moguls like Mr. “I just can’t” would be forced to testify under oath on Capitol Hill and in federal court.
The IRS should also be “encouraged” to start investigating the hundreds of millions of dollars that have been hidden away by the studio accounting tricksters. Once that happens the Guild will have the strongest possible hand and will be able to dictate terms. As a side benefit Nick Counter will be forced to testify and could very easily be jailed for perjury because he will have to lie under oath.
The analogy with the auto companies is spot-on accurate. What the studios and networks have been doing hiding behind the ugly AMPTP logo is completely illegal and a gutsy District Attorney or Federal Prosecutor could make a real name for himself by charging them with collusion en masse. What Enron was to the Wall Street crowd is nothing compared to what could result if the Guild will start showing some real guts on this.
If the deal doesn’t fit, they must be forced to submit!
Regardless of whether it’ll work, it should- almost has to- be tried. There is dessent among the studios. Many are already feeling the pressure. Keep the advertisers threatening to pull out, and keep the court case at the front of this thing. The empire is already crumbling. They might hold their denial in the face of this, but WGA owes it to themselves, all other guilds, and the BTL-ers to give it a shot. Good luck, guys.
I realize that we writers have active imaginations, but the notion that the Guild will be able to break the unity of the companies is, to this former attorney and produced screenwriter, PURE FANTASY.
This strategy, together with our recent filing of a federal labor complaint and our reassertion of reality, animation and the “no-strike” clause is, I’m sad to say, a very desperate hand of cards we’re playing. Sadder still, it didn’t have to be like this.
I’m surprised this hasn’t been commented on more, but in a very real sense, this dispute was over on November 4, when the Guild gave on DVDs and got BUBKES in return. That was the strongest card we had to play, and the moment we gave on it, the end game was in sight.
We are told that our negotiators caved on DVDs because they were led to believe that a major concession on new media was forthcoming. Why our negotiators didn’t insist on hearing this “concession” before giving on DVDs, our biggest chit to give, remains the most infuriating fuck-up of this whole negotiation. At that moment, we were screwed.
Now we are trying to take our weakest cards — the demands that no one in their right mind thought we had a realistic chance of achieving — and lumping them together in a transparent effort to create the same sort of leverage that the DVD issue gave us.
Not gonna happen.
So what next? Classic negotiation strategy (something our side hasn’t exactly followed, to put it mildly) would tell you that when there are no good outcomes left, you change your goals and pursue the least bad outcome. At this point, that means dropping these ancillary issues and salvaging the best deal possible on new media, the issue that working writers care about most. Yep. Craig Mazin had it right.
It won’t be a great deal — that ship sailed on December 4th — but it could still be a decent deal, and in any event, it is the deal we are going to get whether it is made on January 1st or June 1st.
You can call this dissent, shilling for the studios, whatever the hell you want. I call it common sense, something our leaders have displayed strikinkly little of. I call on all my fellow writers who feel as I do — and I know we are many — to let our leadership know that it is incumbent on them to get the companies back to the table and make a new media deal NOW.
If the moguls are asked to negotiate separately and some comply (or even one), that’s a breakthrough. If all refuse, then it could be collusion hearing time on Capitol Hill. Seems to me that the pressure is on the bad guys.
NBC is the most susceptible to shareholder pressure (since the network is such a relatively small piece of General Electric, whose share price has dropped from 40-1/2 to under 37 since the strike began), so it would make perfect sense for CEO Jeff Immelt to consider interim agreements to prevent continued erosion of shareholder value
Well the AMPTP has been trying to play the writers against each other for weeks so lets see how they feel when the studios and networks are played the same way.
What’s good for the goose is good for the gander, no?
I can’t imagine the networks not jumping on the bandwagon and agreeing to a deal with the WGA if, say, ABC agreed first. ABC would be the only network that has fresh material. The others aren’t going to sit back and play reruns and these other shit shows they have lined up.
Does anyone honestly think Warner Bros is going to sit on its ass and twiddle its thumbs while Paramount goes back to work with new product?
Some say this strategy won’t work. Well, nothing else is working so why not give it a shot? Besides, like the joke about the kid trying to sell rocks at the price of a million dollars, it only takes one.
If one company breaks, there’s no way the others are going to just sit back. It really comes down to what is the bigger incentive for these moguls: being yelled at by the shareholders or by the other members of the old boys’ club?
This seems inevitable. Some AMPTP members want an end to the work stoppage, and some don’t at all (taking a blatantly union-busting approach). Bowman et al are well aware that reason (to company self-interest) generally wins out. For instance, NBC is the most susceptible to shareholder pressure — since the network is a relatively small piece of General Electric, whose share price has dropped from 40-1/2 to under 37 since the strike began — so it would make perfect sense for CEO Jeff Immelt to demand interim agreements to prevent continued erosion of shareholder value (GE’s other option is to sell NBC, which would be Zucker’s greatest fear). There is no reason why Lionsgate wouldn’t be among the first-in-line on the feature side; they’ve built their success entirely by going head-to-head with the majors (remember how they showed up Disney when Eisner threw away Farhenheit 911?). An interim agreement for them would give tremendous competitive advantage, since they can bolster their distribution film slate while the majors run theirs dry (and they can keep their TV business active, thus drawing on available talent & in essence doing something heroic for the creative community). Why Steven Jobs as the major shareholder of Disney (whose stock has likewise dropped since the strike started) wouldn’t support interim agreements would be a surprise; ABC’s Steve McPherson has the three hits (Lost, GA & DHs) most vulnerable to disappearing altogether with a prolonged strike. Also, continued efforts to unify AMPTP make them more prone to obvious collusion challenges, that are likely now that the WGA is taking their fight from the picket-lines to Washington DC at a time when politicians are eager to throw them support.
Thom, what you’re saying doesn’t make any sense. If NBC is such a small part of GE, why would there be more leverage within GE? It only makes sense if NBC were a bigger part of the company. The whole stock market is down more than two percent this week. The drop in share price has nothing to do with the strike. If the rest of the market were up, MAYBE could make that argument. If anything, GE has putting pressure on NBC to cut costs so they can sell it but at this point that’s like putting lipstick on a pig.
Common Sense, what if we just call you a little ray of sunshine?
This would really be great. The AMPTP tries to splinter the WGA and end the Guild as we know it (just IMAGINE the hikes in CEO bonuses and stock value if there were no MBA or pension/health!), and as a result, the AMTP gets broken into the million little pieces it (legally) should be.
“Grasping for straws” my ass. (Plus the expression is grasping atstraws… seriously, who’s writing these press releases, Biff Tannen? Next we’re going to hear Nick Counter tell Patric Verrone to “make like a tree and get out of here.”) Lobbying Congress to break up the AMPTP and seeking individual negotiations are not desperate moves; they’re smart ones. The moguls just aren’t willing to believe the WGA leadership is getting smarter with every day off the job, since their own people are obviously getting dumber by the second.
“Common Sense” wrote…
“I realize that we writers have active imaginations, but the notion that the Guild will be able to break the unity of the companies is, to this former attorney and produced screenwriter, PURE FANTASY.
This strategy, together with our recent filing of a federal labor complaint and our reassertion of reality, animation and the “no-strike” clause is, I’m sad to say, a very desperate hand of cards we’re playing. Sadder still, it didn’t have to be like this.
I’m surprised this hasn’t been commented on more, but in a very real sense, this dispute was over on November 4, when the Guild gave on DVDs and got BUBKES in return. That was the strongest card we had to play, and the moment we gave on it, the end game was in sight.
We are told that our negotiators caved on DVDs because they were led to believe that a major concession on new media was forthcoming. Why our negotiators didn’t insist on hearing this “concession” before giving on DVDs, our biggest chit to give, remains the most infuriating fuck-up of this whole negotiation. At that moment, we were screwed.
Now we are trying to take our weakest cards — the demands that no one in their right mind thought we had a realistic chance of achieving — and lumping them together in a transparent effort to create the same sort of leverage that the DVD issue gave us.
Not gonna happen.
So what next? Classic negotiation strategy (something our side hasn’t exactly followed, to put it mildly) would tell you that when there are no good outcomes left, you change your goals and pursue the least bad outcome. At this point, that means dropping these ancillary issues and salvaging the best deal possible on new media, the issue that working writers care about most. Yep. Craig Mazin had it right.
It won’t be a great deal — that ship sailed on December 4th — but it could still be a decent deal, and in any event, it is the deal we are going to get whether it is made on January 1st or June 1st.
You can call this dissent, shilling for the studios, whatever the hell you want. I call it common sense, something our leaders have displayed strikinkly little of. I call on all my fellow writers who feel as I do — and I know we are many — to let our leadership know that it is incumbent on them to get the companies back to the table and make a new media deal NOW.”
To this I reply -
“Common Sense”… no wonder you don’t practice law anymore… I would hate to have you representing me in any dispute. You’d advise me to make a quick, easy deal with the ex… and I would lose my ass. Show some backbone, putz!
1. I don’t think it would be considered far-fetched to try and break the unity between the companies when they are obsessively competitive against one another… or each others’ egos. That, and the fact that they are negotiating as one (the AMPTP0 could be ruled as an unlawful labor practice.
2. Your defeatist attitude sickens me. You claim that it didn’t have to be like this. How could it have been any other way? They are the ones that left the table… the WGA absolutely has to remain proactive.
3. DVD’s were our strongest playing card, huh? A dying technology that is rapidly being replaced by digital cable and the internet? It is, in fact, these residuals that we are fighting the hardest for, not DVD. Also, remember that after the WGA took DVD’s off the table, we got nothing in return. Still, you feel like it didn’t have to be like this and that THAT was our strongest card?
4. Yes, we currently have a whole list of other demands on the table. Some you may even construe as unrealistic. What is your point? That’s contract negotiating 101. Are you sure you ever practiced law?
5. You claim that the WGA hasn’t handled their negotiation tactics with finesse, yet they are the only party that is even willing to negotiate. Thus far, they have SAG on their side, DGA waiting on the sidelines, clear unity within the ranks (except for you) and a PR campaign that has made fools of the AMPTP and rallied the majority of Americans to their cause.
6. I will gladly (and rightfully) call your rambling, pessimistic rhetoric dissent. If you’re not shilling for the studios, then what the hell are you doing? You’re definitely not working towards helping the WGA’s cause. You call it common sense, I say it’s PURE FANTASY. Personally, I think you’re a hired jerk off trying to spread more baseless propaganda.
-Sloop John B
Hear, hear to Common Sense! (post at 1:38 PM)
Finally someone saying what has been obvious for six weeks. This strike was over the moment we fired our only bullet and merely grazed the AMPTP’s thigh. I call upon all who feel this way to show up in force at Monday’s WGA rally. We want two things — a deal on New Media, and to get back to work.
In the event that NBC doesn’t take the opportunity to reach a separate peace with the Guild and then advertsiers keep demanding money back and bolt NBC’s scripted reruns for FOX or elsewhere, and then NBC doesn’t have any new scripted episodes to stream because they didn’t want to cut the writers a small slice of those profits, and little to sell in the way of new DVDs, and lose the Upfronts and then Immelt and Zucker report to shareholders that company profits are saggy because “We were afraid Peter Chernin would be mad at us,” they should be fired immediately.
I wonder what Harvey Weinstein will make of this? He could give a flying fuck about his relationship with other moguls, and his business is entirely features. Lions Gate too.
This sounds a Hell of a lot better than filing a federal lawsuit. Whatever it takes to get us back to work guys! Divide and Conquer sounds a lot better than file lawsuit and wait.