STUDIOS, WRITERS EXCHANGE BARBS AS STRIKE DEADLINE NEARS
Movie and TV writers “are being completely unrealistic” in stalled Writers Guild of America (WGA) negotiations with studios as strike deadline nears, Disney Pres. Robert Iger said. “You have got to wonder what is in their minds,” he said at Thurs. news conference at ABC hq in Burbank, Cal. Jeffrey Katzenberg of DreawWorks contended that if studios acceded to writers’ demands it would bankrupt production industry in 3 years: “That is an irrefutable fact.”
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WGA counters that its proposal seeks only $99.7 million in additional fees from studios over 3 years. Producers, on other hand, contend figure is more like $227.4 million and, when all other benefits (such as residuals) are factored in, 3-year cost to programmers would be about $1.6 billion. Studios said WGA figures were way low because they were based on minimum fees paid to writers, while nearly all TV and film writers are paid above scale.
WGA negotiator Charles Slocum called studio figures inaccurate: “There is nothing new here and nothing that makes us want to change the numbers we put out.” He said it was absurd to say that guild’s request would bankrupt studios. Writers, he said, are seeking $33 million additional per year “probably out of $40 billion to $50 billion in revenue” of studios.
WGA’s 3-year contract with studios expires May 1 and after 6 weeks of negotiations talks between 2 sides broke off earlier this month (CD March 5 p9). Studios also are facing negotiations with Screen Actors Guild and American Federation of TV & Radio Artists, whose contracts expire June 30. L.A. economist has estimated that it would cost city’s economy in excess of $250 million per week if TV and movie industries were shut down by strikes.
In preparation for such an event, TV networks are moving toward reality and other nonscripted programming in planning fall schedules. ABC Entertainment Co-Chmn. Stu Bloomberg told advertisers in N.Y. March 21 that ABC was “best prepared” of any network in case of strike -- citing possible increased episodes of Who Wants to Be a Millionaire and Whose Line Is It Anyway? as stop-gap measures. Day earlier, Fox Entertainment Chmn. Gail Berman told advertisers that network had more scripted shows already on hand than its competitors.