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Saturday, 19 January 2008

Directors reach deal with producers; what next for writers?

"Groundbreaking and substantial." That's how the Directors Guild of America (DGA) described its tentative agreement for a new contract with the Alliance of Motion Picture And Television Producers (AMPTP).
Apparently concluded in just five days, the main highlights of the deal are:
* Increases both wages and residual bases for each year of the contract.
* Establishes DGA jurisdiction over programs produced for distribution on the internet.
* Establishes new residuals formula for paid internet downloads (electronic sell-through) that essentially doubles the rate currently paid by employers.
* Establishes residual rates for ad-supported streaming and use of clips on the internet.

So, well done the directors. But what next for the writers? The AMPTP's website features two constantly updated numbers boards charting how much the writers' strike is costing: the writing community - $215m and rising; and the production crew workforce - $370m and rising. Indeed, the AMPTP's site points out that the average working film or TV writer earns more than a family doctor, an airline pilot or a surgeon...

What the AMPTP's site doesn't mention is that the strike could have significant affect on US TV ad revenues. Of the four Nielsen sweeps a year, the three most important are in February, May and November. Serial TV programmes (24, Heroes CSI and the like) are plotted to ensure that the most watched episodes fall within those three sweeps; the audience figures during the sweeps are used to set advertising rates. Thus with nothing to show during the February sweep and it being highly likely that there'll be no fresh product airing in the May sweep, one might make the reasonable prediction that TV ad revenues will be down.

In the wake of cutting a deal with the DGA, the AMPTP has invited representatives of the Writers Guild of America to re-start contract talks. Pressure is mounting on writers to return to the negotiating table.

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