Stalled negotiations this weekend prompt first WGA strike
since 1988. DVD, new media resids top concerns.
Los Angeles, CA — Members of the Writers Guild of America went on strike as of today, November 5. The commencement of the writers’ first strike since 1988 ends weeks of speculation regarding a protracted impasse between the WGA and the Alliance of Motion Picture and Television Producers.
The issue of residual payments for DVD and new media tops the list of disputes between the two organizations. The current compensation arrangement was implemented years ago when the sale of home-video movies was first introduced.
Per the existing payment structure, the first 80 percent of revenue from the sale of VHS tapes and DVDs covers the cost of manufacturing and distribution; of the remaining 20 percent, writers are awarded 1.2%, or approximately three cents on every $20 VHS or DVD. The WGA is now seeking to have its members’ percentage based on 40 percent of the sale, and for the same formula to be applied to all new media, such as digital downloads.
The first productions to be affected by the strike will be late-night talk shows, which use large staffs of writers to prepare opening monologues and comedy bits. Those shows will likely go into repeats immediately.
Should the strike persist, soap operas, television series and feature films could also be compromised as their inventory of scripts runs out.
Because most television companies have been fast-tracking production as a hedge against a possible strike, most scripted series would begin to see the effects of the writers’ walkout early next year.
Should this occur, viewers would likely witness an increase in reality programming, which does not rely on traditional scripting. Other stopgaps may include the use of reruns, and even foreign programming, such as series produced for the BBC.
The economic impact of the strike, particularly coming on the heels of a depressed housing market and the ravages of last month’s wildfires, could extend well beyond the motion and picture and television industries, which employ an estimated 200,000 people in southern California, and thousands more throughout the U.S. and abroad.
Restaurants, equipment rental facilities and numerous other businesses that rely on the entertainment industry for their survival are likely to be adversely affected.
The strike may be a harbinger of more labor problems ahead, because Directors Guild of America and Screen Actors Guild members will face similar challenges when their contracts expire next June.