When the Talks Progress

The news blackout has been lifted and statements were released late Thursday by both sides - the AMPTP and the WGA. The AMPTP offered a new contract to the WGA containing clauses covering several areas of new media including streaming, content made for new media and programming delivered over digital broadcast channels. The AMPTP claims the entire value of the "New Economic Partnership" will deliver more than $130 million in additional compensation, though it's unclear whether that's per year or over the 3-year life of the contract. WGA is taking a close look at the proposal, but initially has categorized it as a "massive rollback." Meanwhile, WGA also presented the justification for their economic proposal on Wednesday which could cost the industry $151 million over three years, representing what WGA says is a 3% increase. More on all this when the talks resume on Tuesday. Here are excerpts of the statements provided by both sides:

AMPTP:

The AMPTP today unveiled a New Economic Partnership to the WGA, which includes groundbreaking moves in several areas of new media, including streaming, content made for new media and programming delivered over digital broadcast channels. The entire value of the New Economic Partnership will deliver more than $130 million in additional compensation above and beyond the more than $1.3 billion writers already receive each year. In response, the WGA has asked for time to study the proposals. ... talks [resume] on Tuesday, December 4.

WGA's responds first to the AMPTP proposal and then talks of their proposal presented on Wednesday:

Thursday morning, the first new proposal was finally presented to us. It dealt only with streaming and made-for-Internet jurisdiction, and it amounts to a massive rollback.

For streaming television episodes, the companies proposed a residual structure of a single fixed payment of less than $250 for a year's reuse of an hour-long program (compared to over $20,000 payable for a network rerun). For theatrical product they are offering no residuals whatsoever for streaming.

For made-for-Internet material, they offered minimums that would allow a studio to produce up to a 15 minute episode of network-derived web content for a script fee of $1300. They continued to refuse to grant jurisdiction over original content for the Internet.

In their new proposal, they made absolutely no move on the download formula (which they propose to pay at the DVD rate), and continue to assert that they can deem any reuse "promotional," and pay no residual (even if they replay the entire film or TV episode and even if they make money). ...

On Wednesday we presented a comprehensive economic justification for our proposals. Our entire package would cost this industry $151 million over three years. That's a little over a 3% increase in writer earnings each year, while company revenues are projected to grow at a rate of 10%. We are falling behind.

For Sony, this entire deal would cost $1.68 million per year. For Disney $6.25 million. Paramount and CBS would each pay about $4.66 million, Warner about $11.2 million, Fox $6.04 million, and NBC/Universal $7.44 million. MGM would pay $320,000 and the entire universe of remaining companies would assume the remainder of about $8.3 million per year. As we've stated repeatedly, our proposals are more than reasonable and the companies have no excuse for denying it.

Conan O'Brien will pay the salaries of his nearly 80 non-writing staff members of his show for the immediate future out of his own bank account. David Letterman's company Worldwide Pants likewise is paying the non-writing staffers of The Late Show with David Letterman and The Late Late Show with Craig Ferguson. Staffers at NBC's The Tonight Show with Jay Leno, however, will be laid off as of today. NBC had agreed to pay Tonight Show non-writing production staff through the end of November. As to the production staff of Saturday Night Live were laid off in the third week of the strike. Information via Cynopsis.

Wow.

So I guess we'd better be prepared for the slew of reality tv that is going to emerge in the next month or so. To note, though: Lipstick Jungle will be debuting earlier to fill in for the writers strike stopped ER. The reality show I'm looking forward to is the new American Gladiators. Starting Sunday, Jan. 6, it will play in Chuck's Monday 8pm timeslot on NBC.