Hollywood Producers Drop Key Demand in Negotiations with Writers

LOS ANGELES, October 17: In a bid to make some progress in
its talks with the writers unions, the Alliance of Motion Picture and
Television Producers (AMPTP) has dropped a contentious proposal related to
residual payments from the reuse of movies and TV shows on DVD and other
platforms.

The contract between AMPTP, which represents some 350
motion-picture and television producers, and the two writers guilds (Writers
Guild of America West and Writers Guild of America East) expires October 31.
Stalled talks have Hollywood bracing for what could be the first industry-wide
strike since 1988. The guilds’ some 12,000 members are expected to conclude the
strike authorization vote tomorrow.

Among the issues causing contention was a condition that
writers would only be paid residuals after producers had recouped their costs
for the production. With that condition off the table, talks can resume on a
host of other issues, most notably compensation for the use of content online
or on other new-media platforms. “In the overriding interest of keeping the
industry working and removing what has become an emotional impediment and
excuse by the WGA not to bargain, the AMPTP withdrew its recoupment proposal,”
said J. Nicholas Counter III, the president of AMPTP. “By taking the recoupment
formula off the table, we haven’t solved the problems that the formula was
designed to ameliorate. But, as we have said repeatedly, we are committed to
making a deal that is fair and reasonable.”

However, Counter noted, there are other issues that the
alliance will not budge on: “We made it patently clear that the producers will
not agree to increase residual payments for videocassette/DVD use (including
electronic sell-through), for reruns on The CW or My Network TV, or for
programs made for pay television or basic cable. We now expect the WGA
leadership to get down to the business at hand and do what it takes to reach a
new labor agreement.”

The WGA Negotiating Committee said in response to the AMPTP
move: “We welcome that, and hope it means the companies are ready to begin
serious negotiations. The remaining rollbacks would gut our contract and will
never be acceptable to writers. Moving forward, we have extremely important
issues to deal with, including new media, home video, jurisdiction and
enforcement. By maintaining our resolve, we will come out of these negotiations
with a good contract that not only benefits writers, but the entire
entertainment industry and the communities that depend on it.”

—By Mansha Daswani