Friday, January 18, 2008

Deal Or No Deal?

SO OVER AT United Hollywood there's the first reaction I've seen to the content of the DGA settlement with the AMPTP.

The big question is whether there's enough here to get the WGA to end the strike.

There are a lot of caveats attached up front. People are trying to take the temperature a bit. And anybody who's ever negotiated a contract, or heard stories of a period that cost ten million dollars knows that when a summary raises questions, the only thing you can do is wait for the long form contract and see what the thing actually says.

What seems to be the emerging consensus, at least from the few reacts I've read and the WGA members I've talked to: there's some good stuff in here, and there's a lot of bad stuff in here.

The AMPTP was never very serious about negotiating with the writers. They never did table a full, serious offer, and when they walked out of the negotiations 42 days ago, it was with six poison pill conditions -- one of which they just unceremoniously dropped in making the deal with the DGA.

There's already posts you can read being all impressed that the DGA did in six days what the WGA hasn't been able to do with a three month strike. Suffice it to say that I have my doubts that anyone making this point could ever exist for five minutes in a writing room, since they clearly don't have the sort of intellectual vigor needed to parse labor strategy. What concessions the DGA have gotten from the AMPTP in their deal -- and there were some -- was only possible on the back of that three month stoppage. They can spin it however they want -- they talked to the adults, whatever...but the reality is that the scuttlebut says that the AMPTP only realized that they had to talk about some of these serious issues when the DGA got a backbone and said they wouldn't make a deal without them. That resolve was bought on the backs of three months worth of writer pickets.

The New York Times gives its take on the deal here. The boil-down: the DGA did make inroads, but also punted -- they think that online revenues won't amount to a lot before 2011.

The problem? Repeats. Writers can definitely see the possibility that repeats will shift entirely from broadcast, to the internet. Which means that a payment for reuse that used to be 20K will now be $1200. Not good. That doesn't affect Directors the same way.

Some of the formulas are things that I didn't think they would ever get. I didn't think anybody was going to give up compensation based on ad dollars derived from streaming.

That being said, the length of promotional windows feels long to me; the 100 000 threshold for downloads before a better rate kicks in seems high, and there does seem to be quite a few outs and figures that don't really gibe to me.

In short, it's a start. But I think it's only a start. My only hope is that it's enough to get "informal talks" restarted with the AMPTP.

5 comments:

"The Book of Don" said...

Did I read that right Dennis - ONE HUNDRED THOUSAND ??

Seems ridiculously optimistic to me too - and these are downloads NOT hits, right ??

crazy.

jimhenshaw said...

The 17 week window is the killer. Given the speed at which even the weakest virals are chewed through, I can't see much traffic on a prime time TV show after a full four months.

Ed McNamara said...

I for one think the deal is a fair compromise; it allows for continued experimentation as the area of new media grows and keeps profit participants in the loop.

I have no grasp on the numbers, so it's kind of hard to know whether 100k is a big number or small, but one presumes that the research provided by the DGA and companies would suggest that it's somewhere in the middle. The key point isn't so much the number of downloads, but the concept that the residual is increased off the start and increases along with the popularity of the content.

Further to Mr. Henshaw's point, the window on ad-supported streaming isn't 17 weeks, it's 17 days (24 days on first year series). Again, I don't know if that's a small number or not, but to find a way to allow for a window paid by initial compensation before residuals kick in sticks to the philosophy of the TV residual model, while still allowing for the companies to "promote".

I'm most interested in the sunset provision. Whether that means that either party could revisit the new media stuff next round, or whether the new media provisions completely expire with the contract and need to be renegotiated again (a la the ACTRA IPA) is an important distinction the WGA will want to know about considering the distrust the two parties have.

Of course it's not all perfect, but I think the concepts are pretty good and combined with the increased transparency, hopefully it's a blueprint the Guild builds off of. Apparently they're beginning to talk with the studios again, so maybe they agree.

Then again, I won't hold my breath.

jimhenshaw said...

Sorry. My bad. Don't read contracts when you're sleepy.

Ed McNamara said...

yeah, the irony is reading contracts will put you to sleep