WGA 2007 – 2008 Strike

Shannon BarkerSiena Heights University

LDR 655Professor Wallace

Who is the WGA?• Writer’s Guild of America

– Labor organization– Two regional locations:

» East – New York, NY» West – Hollywood, CA

• Majority of members are writers– Television– Animation

• Work is viewable in a variety of formats– Traditional: television & theater– New Media: Internet, video games, CD’s, &

DVD’s

Who is the AMPTP?• Alliance of Motion Picture and Television

Producers– Located in California

• Entertainment industry's official collective bargaining representative– Negotiates 80 industry-wide collective bargaining

agreements • Over 350 members

– Movie & television producers» Studios» Broadcast & Cable networks» Independent producers

WGA “Pattern of Demands”

• Initial compensation and residuals for writing for the internet and other non-traditional media

• Increased initial compensation in all areas• Increased minimums and residuals for The CW network• Increased home video (DVD and videocassette) residual

payments• Expanded coverage of reality programs and animation• Address product integration

The Cost of New Media

Looking Back to 1988• Strike between WGA & AMPTP lasted 21

weeks & 6 days

• Costing the industry $500 million

• Major focus: compensation for work viewed through advanced technology

• Networks replaced television with reruns

• Focused on reality shows: “Cops”

Cost of 2007 – 2008 Strike• Primary shows affected

– ABC: Desperate Housewives, Grey’s Anatomy, Ugly Betty, Boston Legal

– NBC: The Office, 30 Rock, Law & Order, My Name is Earl, ER

– CBS: Two and a Half Men, How I Met Your Mother, The Big Bang Theory, NCIS, CSI

– Fox: Back to You, Bones, 24, House– CW: Gossip Girl, Smallville, One Tree Hill, Super Natural– HBO: In Treatment, Entourage, True Blood– Showtime: Weeds, Dexter,

Trickledown Effect• Thousands of production workers affected:

– Caterers, camera operators, makeup artists

• Service industry that served entertainment industry:– Catering companies, hotels

• Cancellation of Golden Globe Awards– Loss of $70 - $80 million– Affecting: hotel staff, dress makers, limousine

drivers, ushers– Companies lost valuable advertising time

$2.8 billion in lost output through the end of 2008!

Trickledown Effect Continued…

Minimum Basic Agreement (MBA)

• WGA obtained jurisdiction over new media– When written by professional writer– Program is covered by the MBA– Production budget is above: $15,000 per

minute, $300,000 per program, or $500,000 per series order

– Higher residuals for new media. • 2% & 3% for streaming of their work online

• Compensations for downloads– Doubles when over 100,000 units sold

MBA Continued…

• Payments for streaming on the internet will start 17 – 24 days after premiering online.

• They also gave up the demand for a higher share of revenue from DVD’s.

• They did not receive “jurisdiction over reality television or full jurisdiction over prime time animation

Conclusion