Still from Web.Files interview with creators of BMB: Dirty Bomb Diaries

We’re at the beginning of a new age of ‘television’ and ‘film’ production and distribution. Some of the old models of content delivery are getting some competition and some are likely to fade altogether. For actors and all creatives this new model offers some great opportunities. No longer will it be absolutely necessary to live in one of the major markets in order to work in and hopefully, make a living in, ‘the business’. Take a look at this interview, check out some of the episodes of this and other web series on strike.tv or your favorite distribution channel.

Here’s what I know:

The AMPTP says they can’t make any money on so called NEW MEDIA (internet delivery of new product) if they pay actors what they pay for Network TV or Cable TV, especially the residuals that actors earn for reruns.

Really? Want to see some recent residuals I got for Cable TV usage?:

CPT Holdings, Inc. 12.19.2008 $29.60 Net Amount: 19.93
Payor: CPT Holdings, Inc.

Columbia Tristar Television, Inc. 12.18.2008 $14.65 Net Amount: 9.87
Payor: Columbia Tristar Television, Inc.

Twentieth Century Fox Film Corp. 12.04.2008 $72.59 Net Amount: 48.89
Payor: Twentieth Century Fox Film Corp.

These residual payments may make me blush, but it’s not from embarrassment of being over paid. These are the kind of residuals that come from taking the AMPTP at their word.

Apparently that cable TV ‘experiment’ has worked out pretty well for 20+ years but the actors have never able to significantly improve on the deal we cut with the AMPTP when the pleading from the producers was ‘don’t kill this infant technology’.

Regardless of the opinion of how SAG negotiations were handled by the now defunct team of Rosenberg and Allen, hardly anyone I’ve spoken with or read has offered the opinion that the AMPTP offer to SAG is a good deal for actors. Good? It’s not even a reasonable deal.

Universally it seems it is understood that the deal that AFTRA and WGA signed are not ones that the guilds can be happy with or proud of. Yet SAG, because of an inexplicable lack of communication skills among other reasons, has let itself and ‘the actors’ become the punching bag for the rest of the industry. Gotta hand it to AMPTP for looking like the guys in the white hats. Unlike the guilds, the producers have played their hand beautifully.

If actors give up the contracted guarantee of residual income from television and films because they are now distributed (streamed or downloaded) via the internet, then frankly I’m left to ponder: WHAT IS THE PURPOSE OF MEMBERSHIP IN SAG?

Actors by and large simply do not work enough, even at current rates, to make a living in the profession without residual income. Even WITH residual income most actors don’t make a real living from SAG wages. Why do I continue to turn down non union work when the new contract gives producers the okay to produce non union?

Once again we’re told to accept this deal now and we’ll ‘revisit’ the issues when the technology is more mature. Uh. Sure.

Well now it seems that the IATSE folks (from whom SAG has received little public support as our own contract woes have dragged on and on) are having their own issues with their leadership and with the AMPTP.

Nikke Finke’s site has a very good piece today about the IATSE contract situation.

Here is a section of the post on today’s DHD website:

… the IATSE/AMPTP Memo Of Agreement which opponents are calling “the worst concessionary contract” that the Hollywood locals have ever seen. As one activist in the International Cinematographers Guild emailed his IATSE Local 600 members: “So far as I’m concerned, the MOA gives away employment opportunities in New Media, guts our health plan, and gives no security to those who work on a day to day, or part-time, basis. This contract gives away every reason I can think of for belonging to a union. On top of that, it sews up ‘jurisdiction’ over the Internet which means that no group can create an alternative union that might fight for realistic wages and reasonable terms and conditions of employment.”

Substitute “SAG” for “IATSE” and it just sounds like more of the same from the AMPTP. So now, IATSE members who face loss of insurance benefits and loss of a livable wage from NEW MEDIA, how does it feel to be in the position SAG members have been in for the past 8 months? It’s not that easy to ‘just accept the deal’ is it?

A couple of pull quotes from the comments on Finke’s site:

…The New Media contract issues should be a bigger focus for all IATSE members. You might have your 300 or 400 hours to get your teeth cleaned every six months but you won’t be making enough on a “Web Episode” with no real guide lines on rates or staff requirements to make your house or rent payments.

New Media is the future. It should be made under the Basic Hollywood Agreement…

…And I hope that all members can read here, the Facebook site, or 400hours.com to see that anyone who votes in favor of this contract is voting himself, or herself, out of union protection in new media, voting themselves out of a share of future earnings, and possibly voting themselves out of their health care.

This contract, in conjunction with the contracts of the last twenty years, takes a gigantic step forward in dismantling our union and union protections. VOTE NO. VOTE “AGAINST RATIFICATION”.

Furthermore, now I hope all my brothers and sisters in IA can see how foolish it is to not support our sister guilds of WGA, DGA, and SAG…

Why The Smoke & Mirrors, SAG & AMPTP?

I don’t see why the SAG National Majority and their pals, the Big Media labor lawyers, are needing to waste more than an hour in talks since all they’re doing is Xeroxing AFTRA’s TV/Theatrical Contract. These past two days have consisted of nothing more than playing at negotiations. Sure, feature players will be thrown a few bones regarding French hours and force majeure and other stuff the AMPTP was going to back off anyway. Heck, the plan by the AMPTP all along was to make a big show of only giving in to the so-called “moderates” once they came into power in order to make them look all that much better compared to the “militants”? Nice to know that the SAG National Majority is following the AMPTP’s script to perfection. So color me unimpressed when this deal is reached lickety split. And the heavy-lifting residuals issues really necessary to the continued financial security of SAG and its members will be left off the table.

Read all the DHD Coverage here

SAGWatch BLOG

From Digital Media Law:

SAG and the AMPTP ended their second day of talks at about 10:00 p.m. this evening (Weds.), but will resume tomorrow at 1:00 p.m. for a third, previously unannounced day of talks, said a source close to the negotiations. No other info was available on the progress of negotiations, but this is obviously a hopeful sign in a situation that’s been largely devoid of them until the last 30 days.

Negotiations had resumed Tuesday, accompanied by dueling protests, one from an organization of below-the-liners calling itself Back to Work, organized largely by camera operators Jon Philion and Andrew Rowlands and cinematographers Ed Gutentag and Bruce McCleery, and the other from Membership First. BtW was urging a deal, while MF was protesting the likelihood that the talks would result in what they consider an unacceptable deal. There were about 100 protesters in all, reports Variety.

Date: Mon, 26 Jan 2009 15:34:05 -0800
To: SAG National Board of Directors and Alternate National Directors
Subject: Message from Doug Allen

I have been informed by SAG counsel that the National Board has terminated my employment as National Executive Director and Chief Negotiator of Screen Actors Guild. I am disappointed in the board’s decision, which was made by written assent, and I am proud of my record as SAG’s NED and Chief Negotiator.

I wish Screen Actors Guild and its members success and I have been honored to serve them. I have particularly enjoyed leading the wonderful men and women on the SAG staff and serving with SAG’s National President Alan Rosenberg and National Secretary-Treasurer Connie Stevens.

I have made some wonderful friendships with many SAG elected leaders, members and staff and will cherish those friendships forever.

My best wishes to you all,
Doug Allen

For a closer look at what transpired today I suggest everyone check out:

DEADLINE HOLLYWOOD and
DIGITAL MEDIA LAW

Accept a truly lousy contract now and hope to undo the damage in three years? Or reject the contract and take a strike authorization vote?

What happens if the guild does take that strike authorization vote and it is defeated? What happens if it passes? Do we really want to strike at a time when the national economy and millions of families are in financial distress?

Do we really believe that SAG, WGA and AFTRA will come together in three years as a group, united in a way that they have not been during this round of contract negotiations?

What is the best hope for the non-star actors who rely on contracted minimums and residuals to pay their bills and try to support their families?

Today, Nikki Finke of Deadline Hollywood Daily has posted a proposal to SAG. Below is an excerpt. I suggest you go to DHD and read the whole proposal and then read all of the comments.

The decision by SAG president Alan Rosenberg and executive director and chief negotiator Doug Allen to delay the Strike Authorization Ballot originally scheduled to start January 3rd should be recognized as the smart move to make now when SAG’s solidarity is splitting down the middle. It is a mature recognition that both sides on this issue raise valid points and deserve to be heard before anything with the word “strike” on it is considered by members.The “Yes” camp believes that actors will be stuck with what is inarguably a lousy deal undermining residuals not just for the next three years but perhaps forever given Big Media’s historical refusal to contractually revisit new technologies. The “No” camp thinks that a Strike Authorization will inevitably lead to an ill-timed strike in this economic recession and that SAG should join the other Hollywood guilds in 3 years to try to negotiate better terms with the AMPTP.So what was supposed to be a January 24th weekend National Board meeting has now been moved up to January 12th and 13th. It’ll constitute one of the two plenary face-to-face confabs held each year. The NY Division and the Regional Divisions should have no trouble traveling to the Hollywood division’s backyard with so much advance notice. The point of this decision to delay is to ensure a fair airing of all views. (It even takes into account the “No” vote petition supposedly signed by “well-known” actors even though the list includes no mechanism for verifying the names posted on it.)

I believe that SAG now has a unique opportunity to bypass a strike authorization altogether and place itself in an even stronger negotiating position by following a third and less risky course of action: to vote on the AMPTP’s June 30th contract proposal.

Therefore, I urge SAG to…

See the whole post and comments at Deadline Hollywood Daily

It appears that the AMPTP is suggesting two things here: A. The check is in the mail and B. We can figure out how to stream media, make deals for EST, etc. but we just haven’t had time to figure out how to track all those little digital bits to make sure that we’re paying the correct residual amounts.

Here’s the way the AMPTP put it:

On November 19th, the Writers Guild of America issued a press release alleging that Hollywood studios “are not paying residuals for writers’ work that is reused on new media.”

— The WGA issued its press release just as a federal mediator was about to bring SAG and AMPTP together. In addition, the WGA made its complaint about new media residuals without first asking any of the Companies to help resolve any outstanding issues, as is customary practice.

— The WGA’s press release was highly misleading and seems to have been designed to poison the atmosphere for the federal mediation rather than to actually ensure that residual payments are made to working writers.

Here are the actual facts, in a nutshell:

STREAMING
— Some studios have either made streaming payments to the WGA under the new formula, or are set to make those payments this week. The remaining studios are still working to program their residual systems to incorporate the new formulae. Some will process the payments manually in the meantime. Interest will be paid on any late payments.

— Further, studios have been making residual payments all along for Temporary Downloads, as well as Permanent Downloads (called Electronic Sell-Through, or EST). EST residuals for programs released before February 13, 2008 have been included in the DVD payment structure, contrary to the WGA’s press release that payments were not being made for the reuse of writers’ work on new media.

Even before the WGA issued its press release, studios had informed the WGA that new systems were being put in place to calculate and distribute streaming residuals. WGA was further informed that even though the new systems were difficult, costly and time-consuming to implement, steady progress was being made. Complexities of the new procedures include:

An unprecedented number of new formulas for residual payments for film
and television streaming, permanent downloads (EST), and derivative and
original made for new media programs that needed to be programmed.

Payment systems must account for a variety of new variables, including
platform, release window, library vs. current product and allocations to
each Guild and Union.

WGA also knew that, to the extent the difficulties in creating these new systems delayed payments beyond their due dates, the studios would owe interest payments as called for by the labor agreement.

WGA knew all of this and nonetheless issued its press release.

The WGA knew all of these facts, but decided to misuse the issue of new media residuals for the Guild’s own partisan purposes. Instead of working cooperatively with the Companies to resolve any outstanding issues, the WGA went public on the eve of the crucial SAG-AMPTP federal mediation. This move was blatantly designed to disrupt that mediation and help justify SAG’s eventual decision to reject the AMPTP’s offer and end the mediation. In short, AMPTP and the studios are dealing with the issue of new media residuals substantively, while WGA is more concerned about playing politics with the issue than with ensuring that working writers receive payment.

ELECTRONIC SELL-THROUGH (EST)

Also on the eve of the federal mediation, the WGA filed an arbitration claim disputing the way AMPTP was interpreting certain language in the new agreement.

WGA filed this arbitration claim to generate the kind of media coverage that would poison the atmosphere just prior to the start of federal mediation.

The language at issue in the WGA agreement is exactly the same language that was included in each of the Guild and Union contracts negotiated this year. No other Guild or Union has ever questioned the interpretation of the language. No one else has ever suggested that the language means anything other than what it clearly says.

Here are the specific details on the language that WGA has disputed:

— The newly-negotiated terms for EST are consistent among the WGA deal and those labor pacts negotiated by the DGA, AFTRA and IATSE. The language (see below) clearly specifies that the terms shall apply to motion pictures (e.g., TV and features) released after the start of the new WGA contract, February 13, 2008.

— The following is the language on permanent downloads (EST) as laid out in Section 1.b. of the “Sideletter on Exhibition of Motion Pictures Transmitted Via New Media” (as taken from the Final Memorandum of Agreement sent to WGA on Feb. 21, 2008):

“Paid Permanent Downloads (‘Download-to-Own’ or ‘Electronic Sell-Through’) (‘EST’). The following shall apply to motion pictures released after February 13, 2008: If the consumer pays for an EST copy of a theatrical motion picture, the Company shall pay residuals to the credited writer(s) at the rate of 1.8% of 20% of Company’s “accountable receipts,” as that term is defined in Paragraph 3 below, for the first 50,000 units and 3.25% thereafter. If the consumer pays for an EST copy of a television motion picture, the Company shall pay residuals to the credited writer(s) at the rate of 1.8% of 20% of Company’s “accountable receipts,” as that term is defined in Paragraph 3 below, for the first 100,000 units and 3.5% thereafter.”

First is SAGs official release following a full page ad the AMPTP published in the L.A. Times:

Los Angeles, CA (December 01, 2008) – Today’s open letter, full-page ad from the eight entertainment industry moguls is confirmation of their continued refusal to bargain with Screen Actors Guild. In an effort to push negotiations forward in the face of AMPTP stonewalling, we asked two of the CEO’s who signed this letter to get involved in the talks in September. They refused. We wish they had taken us up on our offer. It better serves the industry to negotiate than to buy and respond to $100,000 newspaper ads.

We are still waiting for the CEO’s or their AMPTP negotiators to make a good faith effort at bargaining with us. Agreements with other guilds and unions can’t dictate actors’ terms just because they are part of a pattern set by the DGA. Actors issues are different and must be heard and addressed.

We are still waiting for our turn. We want exactly what the DGA got – the chance to negotiate an agreement that addresses the needs of our members. No other guild or union can negotiate a pattern deal that fits the industry and SAG members, any more than ABC can negotiate license fees for NBC. No one has our proxy.

Our issues are different – not better, but different and we deserve to have our unique issues and very valid concerns resolved in negotiation. Agreeing to fairly negotiate the unique needs of actors would mean that the CEO’s are honorably engaging in the negotiations process rather than continuing to stonewall.

Our message to the CEOs is this, “Gentlemen, please understand, the pattern does not fit. Now that you have at least acknowledged our effort to achieve a fair contract for actors, perhaps you would be willing to sit down with our negotiating committee and resolve our issues?”

The AMPTP responded with this:

“SAG’s press release proves that SAG is now officially out of touch with reality. The Producers negotiated with SAG for 46 days – and over that entire time SAG failed to justify why it deserves a better deal than the six other agreements negotiated so far this year. On a day when the United States was officially declared to be in a recession, when Governor Schwarzenegger declared a fiscal emergency for California, and when the Dow Jones Industrial Average dropped 680 points, SAG continues to demand more and better than everyone else. Unfortunately, the chasm between reality and SAG seems to widen by the day.”