Writers Strike for Revenue From New Media

The Writers Guild of America (WGA) went on strike Monday seeking a greater share of revenue for Webisodes, mobisodes and more in a development that could boost the cost of content and slow the move to distribution methods beyond traditional TV.

With content owners still looking to broadly distribute their content though newer channels, including the Web and wireless, and creating or adapting video accordingly, content creators want a piece of revenue realized from these efforts.

“In recent years, these conglomerates have enjoyed tremendous financial success off the backs of literally tens of thousands of people – including members of the creative community,” said WGA President Patric Verrone. “One part of that community is the writers, whose work serves as the blueprint for programs and movies. And, although the industry's pie is continually growing, our share continues to shrink.”

The sides have refused to agree that writers must receive fair compensation when the writers' work is broadcast on the Internet or downloaded on iPods and cell phones, said Verrone. “Twenty years ago, the companies forced writers to accept an unfairly low residual for home videos so that the market could grow. And, even though those markets did grow to become an extremely profitable revenue stream, the residuals never did.”

The WGA voted unanimously on Sunday to strike, with the decision made following months of negotiations between the WGA and the AMPTP. “To date, the studios have not responded to a single one of the WGA's important proposals, including Internet reuse, original writing for new media, DVDs and jurisdiction,” said the WGA in a prepared statement.

The WGA said it’s been working for the last three months, without progress, to address the issues. The actions of the WGA, which represents writers in the motion picture, broadcast, cable, and new media industries, could result in many shows being pushed into reruns.

Nick Counter, president of the Alliance of Motion Pictures and Television Producers said in a statement: “Notwithstanding the fact that negotiations were ongoing, the WGA decided to start their strike in New York. When we asked if they would ‘stop the clock’ for the purpose of delaying the strike to allow negotiations to continue, they refused.

“We made an attempt at meeting them in a number of their key areas including Internet streaming and jurisdiction in new media. Ultimately, the guild was unwilling to compromise on most of their major demands,” said Counter. “It is unfortunate that they choose to take this irresponsible action. “

Alliance of Motion Picture and Television Producers www.amptp.org 
Writers Guild of America www.wga.org

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