A few thoughts on where SAG is, and the above-the-line creative guilds in general, as of 6 July 2008.
SAG negotiators are currently in hovering mode, awaiting results of the AFTRA proposed Schedule A contract balloting. Most ballots should already be at least in the mail as of this writing.
The conventional wisdom is that AFTRA membership passage of Schedule A adversely affects SAG’s position vis a vis the AMPTP. Rancor between the two actors’ union is likely to continue either way, and with or without AFTRA, SAG still has to negotiate the best deal it can for its members.
Obviously the current negotiations concern me, as does the adverse impact to actors of AFTRA’s company-union deals with the AMPTP. SAG’s next move in relation to AFTRA after negotiations with the AMPTP are concluded and a deal approved and signed is anyone’s guess. The next couple of years in SAG/AFTRA relations could be interesting.
Rather than pursuing this tantalizing morsel, however, I would instead like to address the larger concern of the creative guilds – the next set of contract negotiations in 30-36 months.
SAG has already joined the DGA, WGA, and AFTRA in ceding the 17/24-day residual-free window for New Media. We learned this at the town hall meetings. The DGA, WGA, and AFTRA in Schedule A (pending membership vote) have also allowed for work defined as union work historically and in every other contract they have with the AMPTP to be redefined as non-union work, as long as it’s original made-for-New Media work and below a certain budget level ($15k/minute, $300k/show, or $500k/series). As of this writing SAG is sticking to its guns, insisting that all member work for signatories fall under union jurisdiction.
Out of respect for the WGA as well as current SAG negotiations, I have not written much lately about the 17/24-day windows. As the conglomerates’ New Media footprint grows, as they migrate more of their content to the Internet and mobile devices, the folly of this giveaway will become more and more apparent. Already, branded network websites as well as portals like Hulu are chewing into residual income for actors and writers. This trend will not simply continue, but accelerate over the next three years. Just look at the growth projections the conglomerates report to their Wall Street investors. They are confident about this shift from television/cable network distribution to New Media because the cable companies and telecoms are busy laying fiber optic pretty much everywhere, while various electronics companies busy themselves developing and marketing set-top boxes to connect the big screen in the living room the Internet as well as building televisions that don’t even need a set-top box for the Internet connection (they just use IPTV, wired or wireless). The most likely holdovers after 2011 – the poor and the elderly, particularly in rural areas – are the least attractive demographics for advertisers. Even for these slices of the market, the government’s mandating cheap conversion boxes. The conglomerates will not slow their sprint to the New Media distribution model out of consideration for the poor or the elderly.
As for the New Media production exemption, the creative guilds (including SAG if they cave in, God forbid) are going to learn the hard way why a union never, ever, lets employers redefine any union work at any budget level as being non-union work. The principle of union protection for employees of signatory companies is sacrosanct. The DGA, WGA, and AFTRA under the proposed Schedule A have clearly violated this fundamental principle.
The union principle exists in most industries to protect current employees as well as the next generation. In the entertainment industry, lamentably, even though television is famous for eating its young, many older, established writers and actors may feel their resumes, relationships, or fame protect them from the vagaries of creeping “low-budget” “New Media” work. Those of us who have written, acted, directed, and/or produced in the New Media space know better.
It doesn’t take $15,000 to produce a quality minute in of New Media entertainment. Hell, it doesn’t take $1,000. Michael Eisner is aware of this, even if he hasn’t mastered it yet. Check out what he’s up on the cheap at vuguru.com.
For $300,000 I can think of quite a few content creators (that’s how we refer to ourselves in the New Media space) who could produce 22 minutes of quality entertainment, the kind of entertainment that could easily be a template for a television series. You know, a pilot. That’s another way the conglomerates plan to use New Media. It’s the new back-door pilot space. NBC had to swallow hard and take the leap with scripts and promises this year, but next year, given a choice, are those executives going to feel more comfortable with a script and a promise, or a quicktime file of the show on its feet they can actually watch?
Caryn Mandabach, late of Carsey-Werner, was recently interviewed on KCRW’s The Business on the subject of television development in Great Britain. Across the pond they like to put a pilot on its feet via a staged reading – with actors, and blocking, on a stage. She said this way you can get a stronger feel (and I’m paraphrasing, to be sure) for how the show’s going to play, at a cost of literally tens of pounds (a couple of c-notes, give or take). American producers have long been looking for their own version of this, and they may well have found it in direct-for-Internet production. Already they have bought “We Need Girlfriends” for series development. Actors Seth Rogen and Jay Baruchel got a feature deal off their Internet short, Jay & Seth vs. the Apocalypse. Both were done for almost nothing.
Another thing that’s important to know in the brave New Media world. A screen is a screen is a screen, whether it’s an iPod, a cell phone, a laptop, the LCD hanging in your local Coffee Bean, a 50-incher in the living room, a good old-fashioned movie theatre, an IMAX screen, or a projection onto the side of a building. In an era of time-shifting, channel-shifting, Internet streaming, theatrical-length productions made directly for the Internet (InAlienable, available through www.walterkoenigsite.com, is just the first. Full disclosure – I’ve shared an improv stage with the film’s co-writer and Walter’s son Andrew Koenig, and he is amazing), and the free-flow repurposing and mashing-up of content, when it’s all zeros and ones it can be used anywhere, and monetized in any of a growing variety of ways. SAG is going in the right direction by thinking of its member participation in New Media projects in terms of a partnership with producers. There is certainly precedent for this, not just in residual structures but in the gross participation deals so many A-listers – actors, writers, and directors – have cut for themselves.
By including regressive New Media provisions in this contract cycle’s deals with the AMPTP, the DGA, WGA, and possibly now AFTRA are cutting their own members out of literally thousands of career-making or career-rejuvenating opportunities. In the case of the AFTRA deal, the terms of the proposed Schedule A deal will strongly encourage signatories to issue casting calls specifically saying “No Union Actors Need Apply”. In short, the union-work principle is there for sound reasons.
To those who would say I worry too much, because, after all, the AMPTP agreed to sunset clauses on these New Media provisions, I ask, how good a job did the AMPTP do keeping its promises to revisit VHS? DVD? Oh, but sunset clauses are in writing, they’re in the contract! Sure. Now, what exactly does a sunset claus promise? That both sides get to renegotiate. That’s it. There is absolutely no promise, real or implied, that the AMPTP will negotiate better terms the next time out. In fact, in their June 12 statement to SAG, they referred to “the industry’s now well-established new media framework”. I take them at their word. This is not the language of an entity viewing the current New Media agreements as temporary, or only for three years.
“Well-established”. This means in three years the conglomerates will have built revenue and revenue-growth projections, based on production expense and compensation/residual models the creative guilds have negotiated this year, into their Wall Street reports. Three years from now, they will point to this statement they issued, that the New Media framework is “well-established” as proof that they signaled clearly their long-term intentions. They will say to the guilds in 2011 – and they’ll be right – that the guilds had all of this information about what the conglomerates were doing and planning in New Media back in ‘08. If these terms were good enough in ‘08, they should be just fine in ‘11.
Well-established”. This is what the creative guilds have set themselves up to negotiate against in 30-36 months. Now is the time to prepare. Now is the time to organize. Now is the time build unity and solidarity within the guilds and amongst the guilds. Now is the time for the guilds to gird their loins for the biggest fight they will have ever faced, a fight for the survival of the unions as entities relevant to the interests of their members.
If the creative guilds fail to find their unity, if they fail to come together with a single voice in defense of their rights as workers and needs as creative artists, not only will the result be the decimation of the middle-class working professional artist, not only will the below-the-line workers suffer from longer hours, shorter-turnaround times and the underfunding of their benefits packages, not only will actors find their workplaces more dangerous, sometimes even more deadly, but the very industry that now pushes wages and compensation downwards, that fights workplace safety, will find that their product – our creative output – has suffered serious degradation in quality and audience appeal, thus suppressing the same profits they aim to enhance by squeezing the artists in the first place.
Before I close, I would like briefly to address the issue of compensation. The general public often is misled into thinking creative types in the entertainment industry have it so easy, because they see the most beautiful of us splashed across the covers of the glossy magazines at the supermarket checkout line. That’s not the average creative professional, not by a long shot. The average creative professional is the one who shares a couple of scenes with the “star” and makes them look damn good. The average creative professional is the person who writes the dialogue the “star” says so cleverly. The average creative professional is so good they make their fellows – including the better-paid ones – look that much better. The other part of this misconception lies in the fact that the enormous salaries & compensation packages pulled down the top executives of the largest conglomerates – most of whom couldn’t act or write their way out of a paper bag, let alone direct traffic – and their assorted comings and goings and doings are not nearly as well-publicized as the activities of the top actors or singers. Their wealth is not as much in the public eye. Let me put it a bit more crassly – with a bow to Chris Rock: if Rupert Murdoch woke up tomorrow morning with Britney Spears’ money, he’d shoot himself in the head. Same goes for Michael Eisner, Jeffrey Katzenberg, Mike Ovitz, Robert Iger (counting stock options), and any of a couple dozen other top industry executives.
Well-compensated, well-protected artists freed to work in a creative space generate the kind of product that has made Hollywood the financial and creative standard and envy of the world. In working to protect themselves, actors, writers, and directors work to protect the industry they love.
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Okay, now the short version. It’s the Internet, stupid. The creative guilds need to build internal unity, and come together as one, for the 2011 negotiations if we’re going to maintain New Media to Old Media parity in wages & working conditions, and keep union work in the union. We have a lot of work to do, as we’ve already given up stuff this year we’re going to have fight hard to get back.