Patrick Goldstein on the WGA strike:
AS the strike enters its second week with the two sides as far apart as ever, it's hard not to take the writers' side. I'm not sure I'd go as far as Paul Haggis, who called the dispute "another example of massive corporate greed." But he's on the right track. When Tom Freston was fired from Viacom in 2006 he received $60 million in severance pay, more than all of the DVD residuals paid to WGA members that year. I spent much of last week talking to studio executives, eager to hear a good explanation for months of one-sided negotiations, where the studios essentially presented a series of rollback offers and then bashed the writers for not embracing them. None of the studio chiefs would talk on the record, but if I were to sum up their views, I'd put it this way: The future is too uncertain for us to give anything away.
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Whenever a new technology has arrived, Hollywood has seen it as a grave threat to prosperity, whether it was the coming of talkies, the growth of television or the arrival of the VCR, the greatest gravy train of all, which the studios immediately attempted to sue out of existence. The studios didn't crumble -- they reinvented themselves and continued to prosper.
Even if you chalk up some of the poor-mouthing to gamesmanship, it's hard to reconcile the studio's negativism about the future with the current state of the business. To hear them talk, you'd think they were running an airline or an American auto company, to name just two ailing industries that have forced workers to take pay cuts and health care rollbacks to keep the ship afloat.
Hollywood turned into a clucking pack of chicken littles when video arrived, certain that it would seal the doom of the theatrical motion picture business. In fact just the opposite happened -- they found that the people who rented videos were in large part not the same people who went to the movies, they sold the same number of theater tickets as always but they opened up an enormously lucrative ancillary market that provided a huge profit center long after a film's theatrical run had played out.
Les Moonves made $28.6 million last year. It's awfully hard to accept this overweening concern for the future of the industry and simultaneously justify that kind of executive compensation. The average WGA member makes about $5000 a year.
If you're in the Los Angeles area and so inclined, there will be a "Picketing with the Stars" rally today at the Universal Studios Main Gates 1, 2 & 3 (all gates off of Lankershim Blvd) from 12:00 – 2:00 PM. Stars from Desperate Housewives and CSI (including William Petersen and Marg Helgenberger) will be there. Howie Klein and I joined the writers the other day in the picket line and had a whole lot of fun.
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Go get em Jane.
Jane!!!
And I even stopped to read first!
Well, I’m glad the sky isn’t falling.
Yes, it’s a bit difficult to make the whole “we just don’t have the money” argument when your CEO is making more than the budgets of some small countries.
All my kids are in the film business. Of course they support the strike. I told my daughter the story of a friend long ago who crossed a picket line to get a job in a very competitive business. He is still with the company and his nickname is still Scab.
“The future is too uncertain for us to give anything away.”
The rest of that argument is “…and therefore it is ok for us to not pay you fairly for your work.”
Sorry, I don’t accept that it is fair for studios and producers to keep making money off the backs of the writers just because another new technology has been developed that allows them to resell the material or resell the material under the guise of selling ads or whatever. It is not as if this is like those “first rights” contracts where a magazine buys “first North American rights” to an article or a story, but the rights then revert back to the author who can then recompile his or her stuff into a book and resell it him or herself.
Come on folks, fair is fair - isn’t it fair and right that the people who actually make us laugh and cry should be paid fairly? “Yes, but” is not an appropriate answer to that.
Why is it that when you get to the top you get so afraid? This is supposed to be a creative business. Theoretically one would latch onto innovation. All these guys can see is their billion dollar California lifestyle going down the tubes. My favorite line of all time is Woody Allen, I think in “Play it Again Sam” driving through a SoCal neighborhood explaining the cleanliness by saying, “They bundle all their trash and put it on television.”
I completely support the writer’s strike, and think it’s unconscionable that the studio execs refuse give them an equitable share in the residuals.
That being said, I think there’s a slight error in your piece. I think you left a zero out of the salary figure. I find it hard to believe that a union member makes only $5K a year. If so, then they’re even more screwed than I thought.
This is just another example of the race to the bottom on worker compensation.
When I was a Wall St. economist, I had a different theory about how wages were determined than you’ll ever read in textbooks or hear from other economists. My hypothesis was that corporations had all the power and workers had very little, until they got so scarce that corporations were forced to bid them away from each other. In the 1960s (the only postwar time that real wages rose robustly), it took an unemployment rate that rounded to 4.
All of the behavior that I have observed in the subsequent 7 years confirms my hypothesis.
And something additional about economic behavior. It is sometimes the case that corporations do not understand their economic power until some seminal event teaches them. For example, soft drink manufacturers did not understand their own pricing power until sugar prices skyrocketed in 1974, forcing them to raise product prices, which turned out did not discourage demand all that much. Thus, what was anticipated as a cost squeeze (one securities analyst actually threw himself out the window in despair) turned out to be a profit opportunity.
Apply this principle to corporations and wages. Employers probably didn’t realize how much control over wages that they have when this all started, but they certainly realize it now.
The other thing I want to say before I head out is how hard writing is, as most of you here know. The “kids” who write for places like the Cartoon Network are under incredible pressure to keep producing good material. We may think of it as bland or dumb, but these guys work a lot harder than the idiot at 1600 Pennsylvania Avenue. And they don’t have a family legacy to fall back on.
This is supposed to be a creative business.
You mean the business that mindlessly follow what ever stupid ass formula produced the last “blockbuster”? Right.
This is from the Gray Lady yesterday:
Go get ‘em Jane.
My brother got into LA late last night for a 3 day short visit. My mother is having surgery there today or tomorrow—depending on the surgeon’s schedule and whether or not an emergency comes in the door.
She is having her replacement knee replaced! It was done in 2001 and it broke leaving her alone and in a lot of pain late last week. I may have to come out at some time—probably after she gets out of rehab—if I can swing it. If so and the pickets are still going, I’ll carve out a bit of time to join them.
Picketing on Lankershim (tourist entrance & Metro stop nearby) gets the most press, but to cause actual work stoppage & subsequent attention from the brass @ Universal, picketing really needs to be done @ the Barham Blvd. gate.
Let’s see if the Teamsters cross this main truck gate on Barham. I’m thinking no way, since their local union rep says they need to respect WGA picket lines.
Many friends affected here. “Get back to the table, this town’s economy needs it” might be a good slogan on a sign…
OT..but still Cal. news
Feinstein Faces Dem Censure After Backing Mukasey
HuffPo
Not likely to happen but at least she is getting some heat.
eCAHN…
re: Wikipedia
Actually, I figured you probably knew that caveat lector applied to wikipedia. Mrs BC teaches freshman (college) comp, and I can tell from the screams when another student has turned in a paper (nearly) sole-sourced to wikipedia.
But I was also sure that some of our listers probably don’t know that wiki has to be used very carefully for critical work.
BC
apropos of strike day
reality tv singularity, LOL!
Says it all right there!
And then this, also from the Gray Lady:
Bargain Countertenor @ 17
Yes, I can certainly see how wiki would drive a teacher insane. Did you see my final comment about watching wiki as an example of an unregulated market, which (as with the rest of life) turns out needs some regulation to work better. I understand that wiki now has some oversight, but am not familiar enuf to know how much that’s helped.
This is simply another blatant example of the economic and social distortions that the corporate media themselves have engendered over the last 30 years in our society.
They promulgate the misconception that owners’ and managers’ proprietary interest in commercial enterprises is somehow greater than or superior to the interest of workers.
Now these media “aristocrats” are using this same misconception they have disseminated as a tool for cutting out the interests of society and workers from the commercial enterprise they have been entrusted with.
This is bald theft, not only of the benefits and sustenance — money — the writers are entitled to by virtue of their participation in the media enterprises, but it is an attempt to steal the very idea of democratic participation from the business sector of our society.
So the assault on democracy continues, abetted by corporate media in broadcasting and in their own management policies.
Isn’t it time We, The People, the sovereigns in our system, called upon our “representatives” to intervene on behalf of our democratic rights and principles, and for the workers?
The author should have then gone on to make your point, Jane [the one you made by mentioning Moonves salary]: these “oh poor me” industries always manage to take health care, pensions & salaries away from workers, while permitting management to retain the same.
What do business executives do with their multi-million-dollar annual salaries?
Another union the ruling elites would like to break. Solidarity today, solidarity tomorrow, solidarity forever.
I recognize that striking [both meanings] blond on the left [both meanings] in the picture, but who are the others?
I doubt that the latest planned crop of diversions will make much of an impact, being that we are all writers busy creating our own subjective reality shows. However, 24% of the population has been shown to stuff beans up their nose even after being cautioned against such wanton abuse of legumes, so…
;>)
The most essential cog in the machine…The story, receives the least compensation for its creators.
Pay the writers. It will benefit the entire industry.
1,658 DAYZ AND THE KILLIN’ GOEZ ON AND ON AND..
Citizen Hamsher and the Firepup Freedom Fighters:
Good on ya, sister Hamsher…have you ever walked a picket line before or carried a card for a trade? I certainly don’t want to over romanticise strike solidarity or the bonding of the union experience, a strike is a terribly powerful thing that changes everything and everyone involved in it, but I think that the element that has been missin’ from our politics since Reagan is the sense of relationship or brotherhood and sisterhood that union people shared on political campaigns and brought to middle class folks who would never stand a picket line or carry a banner.
What is interestin’ today is that if we are to recover that sense of connectedness in our politics and if the union movement is to regenerate, it is gunna happen within what used ta be the middle and white collar class of worker. People who never saw themselves as “union workers” such as teachers, counselors, office workers, writers and other “professionals” are now realizin’ that all the rhetoric they grew up hearin from the other side of the tracks actually applies to them and that the concept of “boss” has a real meaning and objective presense in the corporation or the school board or the county commissioners.
Your writing attracts people because it is informed by your experience of reachin’ out and movin into new neighborhoods and experiencin’ other family members. You are constantly growin’, your never lay down in the past and it comes through in your writing. Keep sendin’ us updates from the front lines of the strike, Jane, you can help to extend the connectedness of the strikers to us people back here in the neighborhood.
KEEP THE FAITH AND DON’T GIVE UP…DON’T EVER GIVE UP!!
We need to somehow bring our whole society over to understanding the difference between share holders and stake holders.
P J Evans @ 24
Pay off the politicians so they can keep the money rolling in.
Both sides are now acting against their best interests by allowing this strike to go on. There is no reason that they cannot find some agreement on this - they’re going to have to eventually. And there is no reason that the WGA shouldn’t be engaging in talks while this strike is on. If they expect their union members to walk the streets without a paycheck for weeks on end, the least that should be expected of them is that they sit in a room and try to work out an agreement. As for the producers, in a week or two, they’ll have nothing else to do, so they might as well sit in a room and try too. It’s infuriating that this strike was allowed to happen and even more that there are no talks even scheduled. It’s in the best interests of the union and the studios to try to reach an agreement.
Why was there so much pressure before the strike and now there is no pressure? Isn’t a strike supposed to pressure people to the bargaining table?
raven @ 12
This is stark, raven, maddingly true, however.
This $ame method has great $uce$$ in politic$ a$ well, No?
Is Rudiness but Bushlie redux? Is Hillarious but Bushy lite? Sequels don’t, usually,
get ‘better’.
Is it big-time politics or big-time Hollywood which best exemplifies ‘Nothing exceeds like excess’!???
A striking writer for the Colbert report is going to be on Brian Lehrer show in the coming hour. I’ll let you know when he comes on. You can click on the listen live link on wnyc.org.
And the strike might soon extend into MSM news divisions:
eCAHNomics @ 10
unless i am confused (again *g*), i think dean baker agrees:
RevDeb @ 30
No, they tear down $25 million dollar mansions and put up $250 million dollar ones that they can then read about in Architectural Digest. And then they buy a beach house, then a ski place, and then . . .
Michael Savage…what a dangerous crackpot:
http://mediamatters.org/items/.....8?f=h_side
David W. Bartoo @ 32
Good reason not to give a shit I guess.
um, Tom Freston was largely responsible for building MTV from nothing into something over 25 years. Having a large payout when getting pushed out of the company that you built by someone who is a true a**hole, Sumner Redston, is not unreasonable.
Of all the people to throw under the bus on this, Freston isn’t the one.
selise @ 35
The passage you cite is more about business cycle behavior whereas my model is about something more long run & fundamental. This thread is probably not the forum for going into more detail, though.
eCAHNomics @ 40
fair enough, but i hope you will indulge me sometime in epu land.
And facetious advice for striking writers:
selise @ 41
Look forward to it.
NorskeFlamethrower @ 28
Truth!
BTW, Jane you appear to be having too much fun in the process of changing the world. Must exasperate the ‘gravitas’ crowd. Hmm… seems like good, clean fun to me. Too much grimness; counter with joyful consciousness.
Unions are evil because they give ordinary people powers rightfully reserved for those who have inherited wealth. Bush understands this and will restore things to their proper order.
It’s hard work keeping the ordinary in their place, so he’ll probably need many long vacations.
I support the writers.
It’s odd that this thing has come to a strike- as I understand it- there’s no real money at stake yet- only the possibility of money. Seems that they could reach and interim agreement until such time as it becomes a real issue- but I guess everyone is worried about “precedent”?
Not to say that the studio business is [not] screwy (and I am sure I don’t know 1% as much as Jane on this) but I would be interested to see a statistical profile of the WGA and Actors guild membership. I expect the same pattern will be true of many industries: a whole lot of people making very little, and a few making a lot.
Comparing the top exectives with the average compensation for the WGA membership is not worthy of you Jane.
[edited to add “not”]
eCAHNomics @ 43 -
thanks!
Sparkatus @ 47
Here’s the comparison that should be made. When you ask executives like Moonves why they make so much money, they will invariably say, “Because I make money for the company.” We writers CREATE the products the company sells. Mr. Moonves would be sitting there with his thumb up his butt without us (and soon will be) yet we’re not seen as “making money for the company.” That’s what’s wrong with the picture, folks, and what’s wrong with America.
rwcole @ 46
Too true. Here in the Austin area TV shows have shut production. The people out of work don’t make that much to start with, so it is kind of weird. They live frugally to start with. It is the high tech people from Dell and other such companies that make the big money. That and a few directors that will go un-named. . .
OT–
Another veto from Chimpy:
Why even bother? I say.
George Simian @ 31
The threat of strike is variable, you can notch it up and dial it back. When will it happen? Exactly how?
But once done, the costs and benefits become a lot clearer, and certain costs (buying signs, arranging schedules, buses, scabs or reruns as the case may be) are largely unrecoverable. The cost of waiting one more day may seem small vs the hope that the other side will cave first.
With high stakes, the side that can put up the best front wins. Telegraphing that you want to go to the negotiating table indicattes weakness.
eCAHNomics @ 43
Ladies, in all seriousness, please announce this conversation, if that is possible. I, for one, would be most interested to hear what you both have to say.
1,658 DAYZ AND THE KILLIN’ GOEZ ON AND ON AND..
Citizen Sparkatus and the Firepup Freedom Fighters:
“Comparing the top executives with the average compensation for the WGA is not worthy of you Jane.”
And why not, brother Sparkatus, that is in fact the truth of capitalism that can only be addressed by unions and direct action…so why is it beneath Jane to throw the bright light of her writing on this truth?
Certainly you don’t argue for some sort of natural order of things that justifies the distribution of wealth from economic activity that creates a master and serf class…or do ya?
KEEP THE FAITH, NOTHING IS BENEATH YOU UNDERSTAND!!
The average WGA member makes about $5000 a year.
Is this true or did you mean $50,000 a year?
NorskeFlamethrower @ 54
I second this. Sparkatus?
David W. Bartoo @ 53
It concerns my hypothesis on the macroeconomic behavior of wages & how much control corporations have. It’s too OT to go into in this thread.
Sandman @ 55
$50K. I think $5K is a typo.
“A Rasmussen Reports national telephone survey found that 61% of Americans would like to see U.S. troops brought home from Iraq within a year. For the second week in a row, that figure is up two points from the week before. Over the last eleven weeks, the number wanting troops home within a year has ranged from a low of 57% to a high of 64%.
Twenty-six percent (26%) now want the troops brought home immediately. That’s unchanged from a week ago.
Looking at the other end of the spectrum, 33% now want troops to remain in Iraq until the mission is complete. That’s down two points from a week ago.”
Rasmussen
Another answer to the question “Do americans want us to leave Iraq immediately”?
The answer is “No- but soon”
Of course it seems that people have been saying that they want out within a year for over a year- so who knows?
eCAHNomics @ 57
I understand the OT, but, in future, if the conversation is on the ‘waves’ I would very much appreciate listening in. Thanks, eCAHN.
I saw on HGTV a 700 square foot condo go for $269,000 in Silver Spring, MD a suburb of Washington, DC. I know that real estate in Los Angeles is just as expensive. How do people live?
dalloway @ 49
How much did the person who created the pants you are wearing get paid?
There is definitely value created all along the way. And obviously writers create huge value. Actors would have nothing to do. Stagehands, etc.
With copyright, creative writing is actually pretty well protected, but with many other fields of knowledge creation, the information can’t be kept back. Trying to get actual pay for the value in the information you create is frequently a giant part of the economic problem.
Don’t get me wrong, I think you SHOULD be paid well for what you create, but your arguement is with the very nature of the world and the nature of the capitalist system. People get paid what the market will bear (what their relative power can bring them) not the true value of their product to those who buy it or otherwise receive it.
About 1960 the average CEO made 40x the salary of the average worker, now it is 400x, what happened in just 47 years?
Next up on http://www.wnyc.org/shows/bl/episodes/2007/11/13
Cost of Living Index for Los Angeles.
Sparkatus @ 39
What was Freston getting paid in the meantime?
Sandman @ 55
It’s $5,000. You do know what average means? Right?
Actually are 3 people talking about the strike on wnyc.org, including John Oliver. Can also call in at 212-433-9692.
People will always pay for stories; the human brain is wired to love stories. In history classes, I learned about Homer. I was never taught about his agent, his producer, his set designer, or his attorney. That suggests that the storytellers - the writers - are the heart the entertainment industry.
In the age of $500 DVD cameras, iMovie, YouTube, online gaming, and a wide range of entertainments, people still like stories. But now, rather than simply hearing stories, they also like to make them.
Which means the audiences for what studios produce is shrinking; whereas the audiences for stories are as strong as ever.
I don’t understand how any studio exec can drive by a local Apple Computer store and fail to grasp the simple fact that no single medium, and no single corporation, controls media anymore.
Maybe this is largely about the fact that the moguls are privately terrified. New digital technologies are fundamentally transforming storytelling on a massive scale. All media need writers. Not all media need studio execs.
I assume that part of this brouhaha reflects genuine terror among very driven, affluent interests that happen to be on the wrong demographic, technical, economic, and sociological side of the issue.
Audiences don’t simply want to consume; they want to participate and create. In fact, they EXPECT to participate. Writers help them do that; studios don’t.
Joe Klein’s conscience @ 67
I know people can not live on $5,000 a year!
Biodun @ 58
I believe the median is in the $5K range, based on some discussions on this last week. The average IIRC is approximately $200K but that’s skewed by the few high dollar recipients.
Like the discussion went, Bill Gates and 2 minimum wage workers in a room together, the average net worth is $15B but that doesn’t mean a damn thing to the two minimum wage worekrs.
Half of union is unemployed at any one time & residuals are how they live.
the whole notion of value creation is screwed up
Right now if you stream a movie online & watch it all, the writer gets nothing.
NorskeFlamethrower @ 54
A more appropriate comparison would be the top WGA member with the top executive. Median pay for the Company with median pay for the WGA, mean pay for the Company with mean pay for the WGA.
That’s not to say that income distribution isn’t a great subject to discuss as well. It is. But that particular comparison was apples and oranges.
If it’s 5000 that says to me that there are a whole lot of folks in the WGA that aren’t working and/or are working part time at writing. (and I would imagine that might be right, actually).
I’m all for strong regulation and more progressive tax system (by no means is capitalism and markets the cure for all ills). But other economic systems haven’t worked so well either, and *certainly* haven’t worked so well for writers.
Actors support strinke becausde they know they’re next in line for contract negotiations.
Joe Klein’s conscience @ 67
It means that when industry executives go to lunch they get a pitched script with every entree.
Further to my 65:
One stat that jumps out from the link is that cost of living in LA is 40 percent higher than the national average.
Baseball players and pop stars are way over paid… but it’s a sort of conspiracy to ramp up and distort the high end… everyone gets into the act at the top end.. and they drive it up. Completely non linear and compensation has nothing to do with value.
Completely OT.
Google has a Israeli handler?
(IsraelNN.com) “Google is not and should not become the central arbiter of what does and does and does not appear on the Web. That’s for elected governments and courts to decide,” said Google’s Israeli director Meir Brand Monday morning at a conference on terrorism and anti-Semitism in Herzliya.
http://www.israelnationalnews......spx/124238
Off topic, kinda, but Strike Baby is my niece! Isn’t she adorable?
Strike Baby on Defamer!
Networks report on when an actor joins the strike but doesn’t report on the issues.
I imagine that most writers don’t write as a full time job-
And the strike has widespread fallout for many who are not writers:
SanderO @ 79
I have to agree with you there. An executive who runs a corporation into the ground gets a golden parachute. The rank and file get the shaft.
Joe Klein’s conscience @ 66
Don’t know (I didn’t throw out the previous comp number either), but I’m sure it wasn’t small change.
Sparkatus @ 62
The statement ‘the very nature of the world’ is ‘over-the-top’ and equivalent to ‘it has ever been thus’ in the realm of reasonable discussion.
That it is ‘the nature of capitalism’ as it is NOW practiced, is true.
To suggest that nothing can be ‘change’ because the ‘world’ or ‘God’ made or makes it that way is not useful to mature discussion; the purpose of such an assertion is to end discussion, not to encourage it. These words may well represent your reasoned conclusions. However, if you wish to engage others in seeking change or even the possibility of change, statements of this nature are neither useful nor helpful.
MTV is pretty stupid… it’s time is long past.
It’s part of the dumbing down of culture and it really was a wrong term in the scheme of things.
I’m trying to nail down the “the average WGA member makes…” figure, because it’s widely thrown around and I’ve seen vastly disparate figures claimed. I googled that exact phrase, and found this: On the website “United Hollywood,” strike captain and WGA member George Hickenlooper writes: “What is true is that the average Guild member makes 5K per year from his or her writing services, the average Guild member is middle class, and the average Guild member has been financially taken advantage of for the past two decades to the point of embarrassment.” I’ll take that figure as gospel until it’s convincingly contradicted.
By the way, “average income” numbers for any of the performers’ unions (SAG, AFTRA, Equity) are similarly surprisingly low because of the random nature of the work. For writers, sure, series staff writers and/or writer/producers occupy the healthier end of the scale, but there are plenty of struggling (or “between-projects,” i.e. unemployed) writers at the lower end…all of whom need every scrap of income their work will bring them.