Nov 30 2007 03:08 AM ET

WGA and AMPTP lift press blackout, but still no deal

Categories: Strike, TV Biz

Verrone_l Both the Alliance of Motion Picture and Television Producers and the Writers Guild of America broke their four-day press blackout late Thursday to report detailed updates on the strike negotiations — and no, they don’t seem any closer to ironing out a deal. Both sides said they’ll take tomorrow and Monday off and return to the bargaining table on Tuesday, Dec. 4. After the jump, statements from each camp.

A rep for the AMPTP was the first to issue an statement, saying the companies unveiled a new proposal today “which includes groundbreaking moves in several areas of new media, including streaming, content made for new media and programming delivered over digital broadcast channels.

“The entire value of the New Economic Partnership will deliver more than $130 million in additional compensation above and beyond the more than $1.3 billion writers already receive each year,” the AMPTP statement continued. “In response, the WGA has asked for time to study the proposals. While we strongly preferred to continue discussions, we respect and understand the WGA’s desire to review the proposals. We continue to believe that there is common ground to be found between the two sides, and that our proposal for a New Economic Partnership offers the best chance to find it.”

About an hour later, WGA West President Patric M. Verrone (pictured) and WGA East President Michael Winship issued a number-crunching statement of their own. “After four days of bargaining with the AMPTP, we are writing to let you know that, though we are still at the table, the press blackout has been lifted. Our inability to communicate with our members has left a vacuum of information that has been filled with rumors, both well intentioned and deceptive.

“Among the rumors was the assertion that the AMPTP had a groundbreaking proposal that would make this negotiation a ‘done deal.’ In fact, for the first three days of this week, the companies presented in essence their November 4 package with not an iota of movement on any of the issues that matter to writers. Thursday morning, the first new proposal was finally presented to us. It dealt only with streaming and made-for-Internet jurisdiction, and it amounts to a massive rollback.

“For streaming television episodes, the companies proposed a residual structure of a single fixed payment of less than $250 for a year’s reuse of an hour-long program (compared to over $20,000 payable for a network rerun). For theatrical product they are offering no residuals whatsoever for streaming. For made-for-Internet material, they offered minimums that would allow a studio to produce up to a 15-minute episode of network-derived web content for a script fee of $1300. They continued to refuse to grant jurisdiction over original content for the Internet.

“In their new proposal, they made absolutely no move on the download formula (which they propose to pay at the DVD rate), and continue to assert that they can deem any reuse “promotional,” and pay no residual (even if they replay the entire film or TV episode and even if they make money). The AMPTP says it will have additional proposals to make but, as of Thursday evening, they have not been presented to us.

“In the meantime, we felt it was essential to update you accurately on where negotiations stand. On Wednesday we presented a comprehensive economic justification for our proposals. Our entire package would cost this industry $151 million over three years. That’s a little over a 3 percent increase in writer earnings each year, while company revenues are projected to grow at a rate of 10 percent. We are falling behind.

“For Sony, this entire deal would cost $1.68 million per year. For Disney $6.25 million. Paramount and CBS would each pay about $4.66 million, Warner about $11.2 million, Fox $6.04 million, and NBC/Universal $7.44 million. MGM would pay $320,000 and the entire universe of remaining companies would assume the remainder of about $8.3 million per year. As we’ve stated repeatedly, our proposals are more than reasonable and the companies have no excuse for denying it.

“The AMPTP’s intractability is dispiriting news but it must also be motivating. Any movement on the part of these multinational conglomerates has been the result of the collective action of our membership, with the support of SAG, other unions, supportive politicians, and the general public. We must fight on, returning to the lines on Monday in force to make it clear that we will not back down, that we will not accept a bad deal, and that we are all in this together.”

A rep for the AMPTP was the first to issue an statement, saying the companies unveiled a new proposal today "which includes groundbreaking moves in several areas of new media, including streaming, content made for new media and programming delivered over digital broadcast channels.

"The entire value of the New Economic Partnership will deliver more than $130 million in additional compensation above and beyond the more than $1.3 billion writers already receive each year," the AMPTP statement continued. "In response, the WGA has asked for time to study the proposals. While we strongly preferred to continue discussions, we respect and understand the WGA’s desire to review the proposals. We continue to believe that there is common ground to be found between the two sides, and that our proposal for a New Economic Partnership offers the best chance to find it."

About an hour later, WGA West President Patric M. Verrone (pictured) and WGA East President Michael Winship issued a number-crunching statement of their own. "After four days of bargaining with the AMPTP, we are writing to let you know that, though we are still at the table, the press blackout has been lifted. Our inability to communicate with our members has left a vacuum of information that has been filled with rumors, both well intentioned and deceptive.

"Among the rumors was the assertion that the AMPTP had a groundbreaking proposal that would make this negotiation a ‘done deal.’ In fact, for the first three days of this week, the companies presented in essence their November 4 package with not an iota of movement on any of the issues that matter to writers. Thursday morning, the first new proposal was finally presented to us. It dealt only with streaming and made-for-Internet jurisdiction, and it amounts to a massive rollback.

"For streaming television episodes, the companies proposed a residual structure of a single fixed payment of less than $250 for a year’s reuse of an hour-long program (compared to over $20,000 payable for a network rerun). For theatrical product they are offering no residuals whatsoever for streaming. For made-for-Internet material, they offered minimums that would allow a studio to produce up to a 15-minute episode of network-derived web content for a script fee of $1300. They continued to refuse to grant jurisdiction over original content for the Internet.

"In their new proposal, they made absolutely no move on the download formula (which they propose to pay at the DVD rate), and continue to assert that they can deem any reuse "promotional," and pay no residual (even if they replay the entire film or TV episode and even if they make money). The AMPTP says it will have additional proposals to make but, as of Thursday evening, they have not been presented to us.

"In the meantime, we felt it was essential to update you accurately on where negotiations stand. On Wednesday we presented a comprehensive economic justification for our proposals. Our entire package would cost this industry $151 million over three years. That’s a little over a 3 percent increase in writer earnings each year, while company revenues are projected to grow at a rate of 10 percent. We are falling behind.

"For Sony, this entire deal would cost $1.68 million per year. For Disney $6.25 million. Paramount and CBS would each pay about $4.66 million, Warner about $11.2 million, Fox $6.04 million, and NBC/Universal $7.44 million. MGM would pay $320,000 and the entire universe of remaining companies would assume the remainder of about $8.3 million per year. As we’ve stated repeatedly, our proposals are more than reasonable and the companies have no excuse for denying it.

"The AMPTP’s intractability is dispiriting news but it must also be motivating. Any movement on the part of these multinational conglomerates has been the result of the collective action of our membership, with the support of SAG, other unions, supportive politicians, and the general public. We must fight on, returning to the lines on Monday in force to make it clear that we will not back down, that we will not accept a bad deal, and that we are all in this together."

Comments (1-30) of 32 Add your comment

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  • Anonymous

    oh just take the damn deal u greedy bastards!

  • Anonymous

    oh just take the damn deal u greedy bastards!

  • Leo

    Good post! Keep posting! I like it!
    My friends told me this and said I’ll be interested in it! Yes! He is right! I’m gonna tell them and may I cpoy some of article to post on my blog on http://www.naturistspace.org? OKAY? lol! Sure!

  • Nick

    Finally, some real information and statements from both sides. Thanks for keeping us informed.

  • Zachary

    As you may have known the Writers Guild of America has chosen to be on strike. To make myself clear, I could care less if those whiny writers aren’t getting a piece of the pie every time someone downloads a episode of there show off the internet. This is the kind of insolence that makes me wish I had the power to fire all of those writers who are feeding me junk through the television or computer screen.
    The thing is these writers think they are so superior with there, “Look now, your stuck with repeats of programs because we aren’t writing it!” But the truth is these writers aren’t that great at what they do. Exhibit A: The Simpson’s around six years ago this was the funniest show on television with lines like, “This bomb shelter will protect you from a 6-megaton blast no more, no less.” But now that 30-minute block is a laugh less waste of time.
    Granted, there are some shows with brilliant writing that should hold this strike like 30 Rock, Curb Your Enthusiasm, Lost, and The Office

  • Zachary

    As you may have known the Writers Guild of America has chosen to be on strike. To make myself clear, I could care less if those whiny writers aren’t getting a piece of the pie every time someone downloads a episode of there show off the internet. This is the kind of insolence that makes me wish I had the power to fire all of those writers who are feeding me junk through the television or computer screen.
    The thing is these writers think they are so superior with there, “Look now, your stuck with repeats of programs because we aren’t writing it!” But the truth is these writers aren’t that great at what they do. Exhibit A: The Simpson’s around six years ago this was the funniest show on television with lines like, “This bomb shelter will protect you from a 6-megaton blast no more, no less.” But now that 30-minute block is a laugh less waste of time.
    Granted, there are some shows with brilliant writing that should hold this strike like 30 Rock, Curb Your Enthusiasm, Lost, and The Office

  • RLS

    Zachary, what you personally opine as good or bad television is irrelevant. The truth is that the studios make $$ hand over fist from all of these shows through streaming, itunes sales, etc. whether they are good or bad. Bashing the writers due to your perceived quality of the shows they put out makes no sense, as your opinion of these shows is no more important than mine, and vice versa. What is important is that all of these writers are fairly compensated. You should really be angry at the heads of the studios who try to get away with paying everyone as little as possible while they reap CEO benefits and bonuses. They are the greedy ones.

  • Peter B.

    well, then, I suppose the ‘reliable source’ that EW and TV Guide said this was a ‘done deal’ isn’t really so reliable anymore…

  • RLS

    Zachary, what you personally opine as good or bad television is irrelevant. The truth is that the studios make $$ hand over fist from all of these shows through streaming, itunes sales, etc. whether they are good or bad. Bashing the writers due to your perceived quality of the shows they put out makes no sense, as your opinion of these shows is no more important than mine, and vice versa. What is important is that all of these writers are fairly compensated. You should really be angry at the heads of the studios who try to get away with paying everyone as little as possible while they reap CEO benefits and bonuses. They are the greedy ones.

  • Mary Beth

    Agree 100% with the writers. You can tell who is right in this argument by the length of their statements. AMPTP issued such a short statement because there is only so much they can say to justify where they stand, since they do not stand on the side of logic and fairness. But the Writers Guild issued a very long, sensible explanation of where things are right now with the negotiations and the issues they stand on. I don’t care if not everything on TV is a well written masterpiece, that is irrelevant. Good or bad, whatever the CEO’s are making money off of, so should the writer’s.

  • Rose

    I completely agree that everyone should get fair pay for the work they do. However, I have to ask, where was this argument a few years ago when iTunes and TV seasons on DVD first became popular? If that had been me, I would have jumped on this issue and ironed out the details the very first day people started downloading TV shows from iTunes and things. I have to wonder why they didn’t get on the ball MUCH sooner.

  • Rose

    I support the writers and believe they will eventually prevail, especially since their demands are very reasonable. The studios are going to lose billions to save millions. It’s not good math but the point for them is to crush the union. Hollywood is a union town and they won’t go down so easily.
    Zachery, if you ever get a bad evalution at work I hope you’re going to tell your employer to stop paying your salary. After all, you don’t think the writers should be compensated for their work since you don’t like the quality so you should apply the same standards to yourself.

  • Rose #2

    Two Roses comment in a row! Cute.

  • Jill

    I support the writers! They, after all, are the original masterminds that create all of our wonderful programming. Let’s hope the studios give them a fair deal sometime soon so we can get back to talking about TV instead of the strike!

  • Roy

    Go WGA!!!

  • Joe

    While Zachary’s comment was weak at best, I think that we have seen a drop in quality of television shows all around. HOWEVER people are still watching and continue to demand this crap. So yes, the writers do deserve fair compensation for the work that they produce. I too am surprised that they have NOT been compensated for streaming and downloadable content. What I think is really starting to show is that people will care less about who is getting what is deserved but how long it will take before America will go into withdraw for it’s most favorite drug. True there will be reruns but it’s just not the same. Right now the WGA has the suppost of many. How long will that last? The AMPTP might just wait it out long enough for the general public to stop caring about what the WGA wants and will rally for what they want, NEW content. This is a chess match folks. Let’s see who get’s into check mate first. Also Zachary NEVER put the wit of The Office against the meretricious storyine of Lost.

  • Melvin Floyd

    Zachary-Unless you know the full story about the writers strike, don’t talk. I don’t really care if you think Simpsons is funny or not.

  • Cincinnatus

    RLS,
    As a shareholder of General Electric (the parent company of NBC), why would I be angry with NBC? Isn’t it simply negotiating to ensure the highest possible return to its shareholders? Unfortunately, notwithstanding your comments to the contrary, the television networks aren’t particularly strong performers for their parent companies right now, so I’d just the same rather now see the networks give more of my money away to the writers.

  • Jon

    The real greedy bastards as u so delicately put it are these studios, the writers deserve payment for these medias. So you should probably just not talk anymore…

  • bluecollaramerican

    I agree with the first post, the fallout from this strike has robbed hard-working below-the-liners. If all they want is pennies they should look under some couches or visit the cashier counter at 7-11! Sign a deal already!

  • To the first Rose

    the writers couldn’t “get on the ball” and iron out the details earlier because their contract just expired. that’s why they are only just now renegotiating these rates. and all these people that are so anti the writers because the shows are crap are completely missing the point that the studio is making millions of dollars off of this crap. we’d all like to live in a world where Two and A Half Men is not a top 10 show, but until that day comes those writers should get their fair share.

  • Tere

    For those of you unaware of how the WGA works, it only renews contracts every 5-10 years. Thus, when they last negotiated itunes and other forms of streaming media did not work. They also could not negotiate regarding dvd’s because of their previous contract regarding vhs (producers consider both mediums equivalent). Also, being a giant organization, the guild cannot strike on a whim. Two years ago they voted to strike if their terms weren’t met.

  • Wowzers

    For a 30 min episode a writer makes $20,956 for a 60 min episode a writer makes $30,823.00 for a 120 minute episode $62,367.00. Straight from the WGA 2007/2008 WGA Rates. Enjoy!

  • Don

    Maybe if they weren’t busy whining to the press about everything and basically SABOTAGING their chances at a decent deal at the table with this kind of press announcement.
    What kind of moron goes and basically stymies any kind of amicable talks with this self-serving nonsense?
    IMHO, they don’t deserve any “good will” from the studios after this round of sniveling to the press about how “poorly” they’re being paid.
    For cripes sake, strikes only hurt people. They could have continued working at their current rate while the contracts were being renegotiated, with the contracts’ terms of compensation being retroactive to the point of the expiration of the original. They could have shown a lot more maturity and willingness to work things out with the studios in a more constructive fashion than this.
    I have no sympathy for the WGA at the moment, because they are putting others out of work while they whine. The behind-the-scenes people have families to feed too!

  • Don

    Heh, so if a writer writes 2 hours worth of TV, they make more than most middle-American families make in a year. Nice… way to “starve” there, writers.
    Thanks Wowzer for putting it in a better perspective.

  • Jack Bauer

    Maybe this will force all the viewers to spend more time with their children, read a book, go outside, play a board game. Anything not involving a television. We’re all humans, notorious for our ability to adapt.
    If I had to pick a side, I’d go with the writers. Each board member for each big company has a multi-million dollar salary. The CEOs and Presidents have salaries in the $100 millions! If us middle classers can live off of $50,000 a year, then I think the big wigs can sacrifice a little off the top. What’s the worst that will happen for them? They might have to sell a couple of their cars? Maybe one of the 5 houses they own? Spoiled much?

  • RickJames

    first off everyone here is about as whinny as them stupid wga. i say its a privilage to get paid for what you love to do. let the wga starve or be thankfull for what they got. same geos thier big wigs. it would be a great opportunity for them toshow their appreciation for making their cable ratings, but their not so that shows how much the big wigs care about them. P.S. having a gay missionary. its no wonder why no one wants to take their kids to church anymore.

  • Mike

    The writers need to quit being so greedy. If you’re writing for money, do something else. In the meantime, due to your greed, thousands of peoples are without jobs. It’s robbery on a grand scale. I am a writer and the day I write just for a paycheck is the day I apply for a job at McDonalds.

  • J C

    I say screw the writers. Most of them are arrogant elitists anyway. Only a few of them are worth any money i.e. the writers of Lost, The Office, CSI, House, and a few other shows. Most of the writers work for crappy shows like Law & Order, or Without a Trace.
    Everyone talks about how great these writers are. What about the people that have been put out of work from this strike? The stage workers like the key grip, or the sound guys, or other ppl.
    The only thing I care about is how much the good shows will be effected, such as Lost. Other than that I will enjoy a far better medium of Entertainment, Games. So while all these strikers are whining to the press, I’ll be having a blast playing Mass Effect, or Assassin’s Creed, or Super Mario Galaxy.

  • Meredith44

    Yes, the writers make a decent amount of money, but that shouldn’t preclude them from getting their fair share of all revenue derived from their work. I am not happy about the strike, but I think that everyone who has a creative stake in a product should derive revenue from that product. Authors get paid every time a book of theirs is sold, musicians get paid when someone buys their songs, writers should be paid when people view their works. As far as quality goes, first of all, it shouldn’t matter. Second of all, how long have you been watching television? I think this is a time of very high quality on tv. I might not like everything offered, but there are some really amazing shows out there.

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