On the Internet, Everyone Knows You're a Hyphenate

Idle hands are the devil's playthings, and writer's hands are no exception. That's why some of them have occupied their time on the Internet, creating short films about the strike, and, in some cases, seeking deals to make Internet content for pay. If this trickle becomes a flood, it could herald a sea change for the industry, as Thom Taylor argues in an LA Times Op-Ed. (Water metaphors are on my mind after the torrential weekend rains here)

But there's an irony that may escaped notice - writers are claiming their digital destiny at the cost of their core focus: they're becoming directors and producers as well. Now, that's not unusual; it seems like everyone's mixing in each other's business today. Apple was a computer company; now they're also a music distributor. Microsoft was a software company; now they're gamers as well. Google was a search company; today they're a video network (by virtue of owning YouTube) and a lot of other things. On an individual level, print reporters now make Internet videos as well, and all sorts of people are bloggers (even attorneys).

Yet, it's a big change for many writers, who are often not managerial or entrepreneurial, unless they're already hyphenates: writer-producers (such as television showrunners) or writer-directors (about 10% of the Writers Guild), for instance. There are even a few writer-actors, such as Matt Damon and Ben Affleck - indeed, the latter's now a triple-hyphenate, as he's now a director as well (Gone Baby Gone).

Still the irony remains: the strike, in part, is about claiming respect, and fair compensation, for writers as writers - but to attain that respect writers may have to do something other than write. It's a sad world that way, or an exciting one, or maybe both.


This article first appeared on the Huffington Post on January 7, 2008.

Internet Interdit for WGA Writers?

Can WGA writers write new media content (Internet webisodes and cell phone mobisodes) during the strike? There's disagreement, but my analysis is yes - if the employer (or purchaser) is not a signatory to the WGA agreement. WGA strike rule 1 only prohibits such writing for struck companies. And, new media writing is not within WGA jurisdiction, so writing such content for non-signatories is not prohibited.

Remember - this blog is not legal advice. Consult your lawyer or the WGA for a definitive answer.

Here's the relevant portion of the rule: "With regard to programming made for non-traditional media (such as the Internet and cellular telephones), this Rule prohibits writing services performed for a struck company in connection with new programming intended for initial release on non-traditional media and the option or sale of literary material for this purpose."

Writers and Producers: Here’s the Deal They Should Make

[Note - this article was first published about 10 days ago.]

As the deadline for the writers' strike bears down, Hollywood waits with anticipation and fear. The effect of a strike, if not averted or delayed, would be programs off the air, movies delayed, and people out of work throughout the industry and the local economy. It doesn't have to be that way. There's room for a deal on all the major issues:

DVD Residuals. DVD residuals are the writer's cut when a movie or TV show gets released on DVD. The current formula – which the WGA calls "the hated DVD formula" – is crazy. It dates to 1985, and is adapted from an old record industry royalty formula. What's more, it's based on the assumption that "videograms" – videotapes, at the time – are expensive to manufacture. That's no longer true; DVD's in quantity are $0.25–$0.35, shrink-wrapped with inserts and ready to sell.

Of course, there are other expenses – shipping, recoupment of production and advertising costs, etc. – but still, the studio profit is large. Meanwhile, the writer gets under $0.05 (five cents) per unit sold. That's ridiculous. The writer's want $0.10 per unit. Not a huge increase, but the actors and directors will get parallel increases too. The parties should compromise on $0.075 (seven and one-half-cents) or $0.0625 (six and one-quarter cents) and call it a day.

Residuals for Internet Downloads. The studios want to apply the DVD formula to downloads as well. This, too, is ridiculous. The DVD formula makes no sense any more for home video, let alone for downloads, where the manufacturing cost is zero. The studios' position amounts to paying the writers 0.3% of the studio's gross on downloads, whereas the writers want 2.5%. They should compromise on 1.2%, which is the figure used for videogames and pay TV (HBO and Showtime).

Residuals for Internet and Cell Phone Streaming. The studios' position is unclear. They say they want to apply the DVD formula, but they also reserve the right to deem any streaming (and even download) usages as "promotional" – even if the studio receives revenue – which means no residuals would be payable at all. Piggy, piggy, piggy. Give the writers the 1.2% unless the studio receives no revenue on the usage.

Jurisdiction Over New Media. When writers create content directly for new media (webisodes and mobisodes), the WGA wants the guild agreement to apply. That's a bit much. The agreement is 625 pages and is so incomprehensible that the day I started working at the Guild (I'm a former WGA Associate Counsel), my boss told me not to bother reading it because none of it meant what it said anyway. Plus, setting minimum compensation levels for writers, when business models are unknown, is not feasible.

However, there is a voluntary Internet Sideletter (p. 561 of the agreement) that a few studios have signed on a project-by-project basis. All it requires is that the studios pay pension and health insurance benefits (P&H). The compromise: make the Sideletter apply to all new media (such as cell phones), add a provision requiring credit parity (require that the writer get credit on-screen if the director or actors do), and make the Sideletter mandatory. Done.

There are some other issues as well:

Animation. The writers want jurisdiction over animation writing, which they've received on a case-by-case basis. Trouble is, a rival union, IATSE (the "IA"), also claims jurisdiction in this area. Ironically, the president of the WGA is an animation writer. Still, this one's probably a lost cause.

Reality. The writers say they want jurisdiction over this issue, but their strike rules don't even bar such work (in contrast to movies, scripted TV, and animation – the writers can't do any such work during a strike). They're signaling that they'll pass on this issue at the end of the day.

The CW. The writers want to treat the CW like a full-fledged network for compensation and residual purposes. It isn't; treat it like Fox in the '90s and set the levels in between network levels and the current lower rates.

MyNetwork TV. The writers want higher residuals here. Please. MyNetwork TV? This channel is more like no one's network TV.

So, a deal is possible. The parties should make one and let the town get back to work.

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This article originally appeared in The Huffington Post on November 5, 2007 at http://www.huffingtonpost.com/jonathan-handel/writers-and-producers-he_b_71157.html