A Message from your Chief Negotiator, David Young
As we approach the July 16 opening of our negotiations with the Association of Motion Picture and Television Producers (AMPTP) for a new Minimum Basic Agreement, I would like to take a few moments of your time to introduce this first “Contract 2007 Bulletin,” and to make a few observations about the outlook for negotiations. The present Bulletin contains an article by the Chair of our WGA Negotiating Committee, John Bowman, and information on the current economic condition of the television and film industry, as revealed by the words of the chief executives of the major entertainment companies and by the analysis of company data and projections for the future by a leading financial services company, PricewaterhouseCoopers (PwC).
The CEOs' view, which is confirmed by the accompanying data, is that the Companies that dominate the entertainment industry are doing extremely well, much better than the average of Companies in other industries, and that the prospects for the future economic growth and profitability of the Companies are extremely bright. There is growth in almost every single measure of economic performance, including gross revenues in every segment, excellent operating profit margins, and rising share prices for all six Companies. This is good news for writers and other members of the talent community whose fortunes are tied to the future of the entertainment business. However, what the PwC figures don't show is the bad news, the extent to which our income as writers has not kept pace with the Companies' growing revenues.
Why has our income not kept pace? There are several reasons, but the most important are: first, our income from the fastest-growing revenue segment over the past ten years, the home-video segment, has been based on an unjust formula; and second, our share of the entertainment marketplace has declined with the growth of non-WGA basic cable, reality and animated programs.
We are determined that this situation be corrected. Our proposals to the Companies are fair and reasonable, and are based on our view that writers are a fundamental, essential part of the success of the entertainment business, and that we deserve an equitable share in that success. We are committed to working with the Companies to face and overcome the uncertainties of the future, understanding that the best way to secure the future of the entertainment industry is through a forward-looking agreement that recognizes the vital interests of the talent community and the Companies. For our employing Companies to succeed in the transition to new channels of distribution such as the Internet and cellular technology, they need the cooperation of the talent community. We are eager to enter this new era together with the Companies, and to create the content that will drive the success of the industry; but we must be fairly compensated for our work, and treated as full partners in that success.
Our Guild is united and prepared as never before for these negotiations. We have devoted substantial resources to preparing ourselves through research, organizing and member outreach. Through research, we have developed a deep understanding of industry economics, including the business plans of the entertainment Companies for the Internet and other new media. Through organizing, we have begun to reclaim our right to represent all writers in entertainment and news, including in basic cable, reality television and animation. Through member outreach, we have developed a strong, conscious and united membership, with active participation of television and screenwriters evident in every aspect of Guild activities. Our Negotiating Committee is composed of some of the most successful and influential writers in the industry, and they have already demonstrated their dedication to advancing the goals of all writers by their participation in an extensive process of discussion and preparation for the negotiations.
We have reached out as well to our sister guilds in the talent community, and have had on-going discussions of the issues facing all of us. We know we share common interests with our sister guilds, and we will continue to work with them as closely as possible to further those interests. In addition, we are strengthening our ties with other Hollywood unions and the broader labor movement in Los Angeles.
When writers stand together, we are powerful, especially when we are able to unite with other members of the talent community. By working together with actors and directors, we have been able to secure real victories over the past months, including an agreement with ABC to cover “mobisodes” and with CBS to cover “webisodes”, while defeating an attempt by NBC to force our members to create webisodes for no extra compensation. And at Comedy Central, writers including the stars, creators and showrunners stood together to win excellent contracts at The Daily Show with Jon Stewart, The Colbert Report, Mind of Mencia, The Sarah Silverman Program, the Showbiz Show and American Body Shop.
This Bulletin is the first in a series that will be produced in an effort to keep all our members informed of the progress of negotiations and to provide the background information we need to understand the developing situation. We are interested in hearing your reactions to this information and to our ideas, and your suggestions for future topics. With your continued involvement, support and participation, I am confident we will conclude these important negotiations with a fair, reasonable agreement that meets the needs and advances the interests of the writers and the industry as a whole.