Yesterday negotiators for writers and studios meet to discuss
a new deal that could put an end to the strike which entered its fifth week.
Still, they didn’t succeed in reaching any deal.
Although some progress was made in recent days, these were
set back by one big gap that separates the two sides: how should the writers be
paid for the use of their work on the Internet.
Also another issue is the different priorities that the
major Hollywood studios and their corporate
parents have thus slowing the process of reaching a unanimous deal, just as the
rules of the Alliance of Motion Picture and Television Producers require, L.A.
Times reports.
The Writers Guild of America responded on Tuesday to the
proposal made by the studios last week about streaming shows online with a
system of tiered compensation which is based on how many times a show is
viewed.
The writers now earn $20,000-plus from one single rerun of a
TV episode, and the studios’ proposal is of $250 for a year for the use of an
hour-long show online.
The guild’s proposal says that in the first year they will
receive $632 for the first 100,000 views, and afterwards pay rates should
increase at each 100,000 views.
Due to the strike dozens of production of prime-time and
late-night shows were shut down thus many programs were forced to enter reruns,
the Associated Press informs.
The Alliance of Motion Picture & Television Producers
said last Thursday that it is going to offer $130 million in extra pay over the
proposed deal of three years.
The guild rejected this offer saying that it only addressed
the programs supported by advertising streamed for free on the Web and
jurisdiction over shows made only for the internet. They thought that the proposal
was a "massive rollback."
However two people from the negotiating committee of the
guild said: "It felt like the beginning of a negotiation.” According to
one of them, the guild will analyze the proposal and is looking forward to
continue the negotiations which are to end today.
According to David W. Rips, director of the media and
entertainment practice at Deloitte Consulting, the biggest concern was to
determine the compensation for emerging online and digital platforms.
The alliance was accused by Patric Verrone, president of the
Writers Guild of America, West for not being able to negotiate.
He said: "I don't really feel like they're negotiating,
and part of how they operate is, the AMPTP allows bottom-line hard-liners to
rule the day. If any of these companies want to come forward and bargain with
us individually, we think we can make a deal.”
The alliance includes studios, networks and producers. It
has refused to make any comment.
If the strike continues into next year it could affect the
first- and second-quarter outlooks for the TV units that are part of the media
conglomerates.
It could cost ABC, CBS and Fox networks $300 million, by the
sayings of a report drawn by Alan Gould, senior analyst with New York-based
Natixis Bleichroeder.