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Screenwriters Strike: Issues for music


Billster

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New Media, Old Troubles

 

At the root of this strike is the writers desire for residuals from "New media" (web streams, downloads, etc.) to be compensated at the same rate as traditional residuals (late night re-runs on local UHF channels).

 

Of course the media conglomerates say they aren't making money from "new media" (yet) and treat it as promotional expense, so they can't pay writer's residuals on something they book as an expense. IMO, that's short-sighted because at some point video streaming, cell phone "broadcasts", and other digital distribution will become as common as a trip to the video store or the Netflix reservation page. I already amaze my son with tall tales of an age where cartoons were only on during certain times of the day, on certain channels, and if you missed it, too bad. Whole channels of nothing but kids programming all day; SpongeBob on demand via a few pokes at the remote control? We didn't even have a remote control! The future will be here tomorrow, or maybe next Tuesday. Let's be prepared.

 

This issue is important to musicians as well, as far as music placement in "new media" such as video games spun off from popular movies, so on and so forth. Any agreement with the writers guild will be regarded as a benchmark for contracts with other content providers, such as music.

 

And I realize that the technology companies designing the "new media" like ringtones and pre-loaded mp3 players want to keep the costs down and maximize margins. As the hardware becomes more widespread (and cheaper) bundled content becomes more valuable - let's not forget where content comes from. So let's root for the writers to get a fair shake and set a standard we all can live with.

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Make the bosses take the losses!

 

(actually some of the writers were chanting "No Money - No Funny!", which I kind of liked).

 

One weird wrinkle of the Writer's strike. The studios will paint a picture of slowing DVD sales (the growth curve is topping out and recent releases are heavily discounted) and point to format confusion with HD vehicles. It's a bogus argument, but they are pretty good at getting attention.

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  • 4 weeks later...
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So why are we screenwriters on strike?

 

 

Advice:

 

So this is it. As of Monday, we're on strike. You no doubt have heard people say "no one wants a strike" and "no one wins in a strike." So why are we on strike?

 

Many people have explained the issues far better than I can, but I'll attempt to give a very brief summary. Every three years when the WGA contract with the producers expires, we negotiate a new one. This year it's mostly about re-use payments for the Internet. When a writer creates intellectual property -- which is what you all do when you sit down and type your screenplay -- you are entitled to receive payments for its use and reuse. Residuals are a key component of the overall compensation writers receive.

 

Back in 1985, when VHS was a new technology, the writers agreed to a 80% discount on the residual rate (writers get 20% of the usual royalty rate, which is 1.5% of gross). The understanding was that the rate would return to the normal 1.5% after the technology was "proven." Of course, it never did, and we've been fighting about the rate ever since.

 

In practical terms, this means that writers get 1.5% royalties on other uses, but only .3% of video and DVD. That works out to about four cents on a DVD. That's right. For every DVD sold, the writer who created the work gets four cents.

 

This year the WGA asked to double the DVD royalty rate, from 20% of the usual 1.5% royalty rate to 40% of 1.5%. Not all the way back to 1.5%, mind you, just up to .6%. In other words, the WGA was asking for eight cents per DVD.

 

The producers' response? Raise it only to .45%? Keep it at .3%? No. They proposed the rate be reduced to zero. That's right. They wanted to eliminate the residuals altogether.

 

So where does the Internet play in? Well, DVDs are a dying breed. Everyone knows that in the future, people will just download movies and TV shows. So now is the time to set the rate. Will it be the usual 1.5% or some lower percentage like we got for home video? Remember, this number tends to be set in stone forever. So what did the producers propose? Zero percent. They claimed that streaming movies or TV shows were "promotional" so they shouldn't pay any residuals at all on the reuse.

 

And that's why we're on strike. If you like sound bites, just remember this one: "Four cents. We're on strike because the producers wouldn't give us four cents."

 

Russ

Nashville

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So why are we screenwriters on strike?

When a writer creates intellectual property -- which is what you all do when you sit down and type your screenplay -- you are entitled to receive payments for its use and reuse. Residuals are a key component of the overall compensation writers receive.

Russ

Nashville

 

 

Question: If a screenwriter is employed by xyz company to write screenplay, is the work the intellectual property of the screenwriter or the company?

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i have actually enjoyed the strike and no new shows being made... another reason to not watch TV as much. i think it might have even improved my sex life since the wife doesnt watch jon stewart/steven colbert everynight so i get a whole hour now :D

 

i do side with the writers that they do need a cut of new media delivery, although RIGHT NOW understand the companies arguement that it is an expense right now and probably not much profit in it, but that will change eventually. although with digital downloads, all profit from all avenues could go away.

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Thanks Russ, that was informative. The digital distribution model is presently at the stage VHS was 20 years ago. The producers/distributors are claiming "unproven" technology. I guess the VCR was never a "proven technology" for the duration of its marketable lifespan. They don't even make the tapes anymore, so home video was obviously a failure. :freak:

 

The studios are afraid of giving away too big a percentage of money that they haven't yet figured out how to make. If they can't figure out how to maximize the revenue from digital distribution models, they would see 1.5% as "giving away" too much of a small pie - forget that the small pie goes for everyone involved, writers included.

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The producers' response? Raise it only to .45%? Keep it at .3%? No. They proposed the rate be reduced to zero. That's right. They wanted to eliminate the residuals altogether.

 

 

can you explain this more... im thinking of comedy stuff here, but arent a lot of times the producer the comedian and ultimately the writer of a good bit of the material? or is the producer the parent company who owns the show?

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