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Hollywood writers' strike drags on

By
Real Estate Agent with no current broker affiliation

This technically affects people all over the nation, but it especially hits home here in Southern California, because so much of our economy trickles down from the work that the writers do.

Now, I'm not normally a big fan of strikes, but after hearing the issues, I think these writers have every right to ask what they're asking for. 

The biggest issue with them is over the residuals they receive for "new media".  That would include things like internet streaming of tv show episodes - which, by the way, include commercials, which the networks receive revenue from.  Basically, the writers get a certain cut off re-airing of work they contributed to, as well as other forms of distribution.  The last time they negotiated a contract, DVDs were still new media, so they had negotiated a fair and mutually agreeable rate for video, but a much lower one for DVDs.  Since then, the studios and networks have made money hand-over-fist in the DVD market, and gotten away with paying pennies on the dollar of what they should have been paying the writers (if you measure it by the residuals they get for older forms of distribution).  But far worse than the DVD deal is the one for internet distribution: they get nothing.  Nada. Zip. Zilch.  Because this form didn't exist as an industry when the last contract was written, the studios have gotten away with paying their writers absolutely nothing for it.

So when you see the strikers and celebrity supporters on tv, now you know why they're doing it.

So how does that affect us here in SoCal, aside from our favorite shows going on hiatus or to reruns?  The entertainment industry is a lot like... it's a lot like an airline.  Think of the writers as the pilots for an airline.  When the pilots go on strike, there is no one to fly the planes.  That means that the flight attendants aren't working, neither are gate agents, ramp personnel, dispatchers, maintenance workers, caterers, etc.  Essentially, everyone in the airline (save for management and anyone NOT involved in operations like the reservations people, marketing, accounting, etc.) is unable to do their own jobs.

I'm not predicting a major recession in the SoCal economy or anything, after all, reality tv continues on (whether we like it or not), but it will have a measurable effect if the strike drags on too long.  Let's hope the writers and the industry come to an agreement soon (and not JUST because we're all dying to see the next episode of 24)

For more information about the strike from the strikers themselves, see the WGA YouTube page.

Comments(2)

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Nancy Moeller
Seven Gables Real Estate - Anaheim Hills, CA
It shows you how much of entertainment is like blogging - all about the content. I support their position and hope it's resolved quickly for all of the other people this industry affects. Thanks for sharing your insights.
Nov 09, 2007 12:50 AM
Chris Pollinger
Berman & Pollinger, LLC. - San Diego, CA
Consulting for Luxury Teams and Brokerages
We get to have so much of the attention here in California - I hope the strike resolves itself soon, I have a few friends in the industry and I'd like to see them getting back to work...
Nov 09, 2007 09:27 AM