WGA, AMPTP Deadlocked Over DVD, New-Media Residuals

LOS ANGELES, November 1: The contract between the Writers
Guild of America and the Alliance of Motion Picture and Television Producers
expired last night with the two groups still unable to come to an agreement
over the issue of residual payments from DVD and electronic sell-through
revenues.

The two groups held mediated discussions yesterday, and
talks ceased a few hours before the contract expired. The WGA is holding a
meeting of its members in Los Angeles tonight to determine a course of action,
and a strike is looking increasingly likely.

The WGA Negotiating Committee, on behalf of the Writers
Guild of America, West (WGAW) and the Writers Guild of America, East (WGAE),
issued a statement last night noting that the AMPTP “refused to continue to
bargain unless we agree that the hated DVD formula be extended to Internet
downloads.”

The WGA maintains that its most recent proposal, presented
yesterday, included movement on the DVD, new-media and jurisdictional issues.
And it says it took nine proposals off the table. The AMPTP, however, “said
they would not respond to our package until we capitulated to their Internet
demand,” the WGA maintains. “After three and a half months of bargaining, the
AMPTP still has not responded to a single one of our important proposals. Every
issue that matters to writers, including Internet reuse, original writing for
new media, DVDs and jurisdiction, has been ignored. This is completely
unacceptable.”

AMPTP’s president, Nick Counter, has said that the DVD and
electronic sell-through issue “is blocking us from making any further progress.
We cannot move further as long as that issue remains on the table. In short,
the DVD issue is a complete roadblock to any further progress.”

Counter’s statement continues: “Before the negotiations
began, Writers Guild of America, West President Patric Verrone met with many
CEOs. The consistent message from the CEOs was that, for overriding business
reasons, the home video formula would not be changed. Nevertheless, you
proposed to increase the DVD formula in these negotiations. We want to make a
deal. We think doing so is in your best interests, in your members’ best
interests, in the best interests of our companies and in the best interests of
the industry. But, as I said, no further movement is possible to close the gap
between us so long as your DVD proposal remains on the table.

“We are ready and willing to proceed to reach agreement with
you. We call upon you to take the necessary steps now to break this impasse so
that bargaining can continue for our mutual benefit and the good of everyone
else who works in this industry.”

It is not clear when negotiations will resume. Counter
maintains that when asked if WGA could meet again on Friday, “they advised they
would call us.”

If a strike is called, there is not expected to be any
immediate effect on television schedules; the networks are said to have enough
scripts to get them through the February sweeps. The networks also have
numerous unscripted projects in the works if the issue is not resolved by then.

—By Mansha Daswani