MUMBAI: The standoff between Hollywood studios
and the Writers Guild of America (WGA) continues.
producers offered a new set of proposed pay
formulas for digital media. This, however, has
been rejected by the WGA.
AMPTP had unveiled a New Economic Partnership
to the WGA, which included groundbreaking moves
in several areas of new media, including streaming,
content made for new media and programming delivered
over digital broadcast channels.
entire value of the new economic partnership
would deliver more than $130 million in additional
compensation above and beyond the more than
$1.3 billion writers already receive each year.
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.
obtained in the initial market of release no
longer cover the costs of production, much less
distribution and marketing. There is no such
thing as supplemental or ancillary or secondary
market any longer and hasnt been for years.
All windows and media are needed for the vast
majority of productions just to recoup initial
costs, much less break even or make a profit."
WGA dismissed the studios' proposal as mere
hype. "It amounts to a massive rollback.
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
had 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 thre per cent increase
in writer earnings each year, while company
revenues are projected to grow at a rate of
10 per cent. We are falling behind.
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.
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," the WGA said.
two sides plan to return to the bargaining table