From United Hollywood re Latest Writers Strike Info

Copied from United Hollywood:

The companies put out a press release today, thus ending the media blackout to which they and the WGA agreed. So this is what we no know:

That big, amazing proposal that the companies hinted to Nikki Finke was coming? Well, it came.

Turns out their exciting, groundbreaking proposal is... a residual rollback. And not just any rollback, one of the biggest in the history of the Guild. Then, stunningly, the companies have the balls to say their plan gives us more compensation. Well, I'm sorry, but If you take away a dollar and give me a nickel, the nickel ain't a raise. Somewhere, Nick Counter's first-grade math teacher is embarrassed.

So we decided to do some math of our own: We broke out the cost of the WGA's current proposal to the conglomerates into yearly figures. We found that the TOTAL payment yearly -- the total that ALL the companies would make under our proposals -- is $50.54 million. And that, we realized, is about one-third the budget of TRANSFORMERS. We are asking IN TOTAL, for the equivalent of the cost overrun on a summer event movie.

Instead of agreeing that that is a fair and just offer, they've proposed this:

When an hourlong episode of television is streamed on the Internet, writers would get a flat $250 payment for one year of reuse. That's $250 as opposed to, for example, $20,000 per episode when it's reused on network television. They proposed nothing new on downloads, it's still the DVD formula for those (ie. two-thirds of a penny for an iTunes download). For theatrical movies, they're offering exactly $0.00 on streaming. Oh, and they want to be able to define any content they like as "promotional" -- for which they would pay zero dollars. Even if they stream an entire film or tv episode, and even if they sell ads on it, they can call that promotional and pay us nothing.

THE AMPTP claims their deal is worth $130 million over three years. But what they don't mention is how much we'd lose under their proposal. As all media distribution transitions to the Internet before our eyes, their proposal takes away far, far more revenue than it provides.

A bold, new relationship? Sure, an abusive one.

Patric Verrone sent this letter to membership a few minutes ago:

To My Fellow Members,

After four days of bargaining with the AMPTP, I am writing to let you know that, though we are still at the table, the press blackout has been lifted.

Our inability to communicate with our members has left a vacuum of information that has been filled with rumors, both well intentioned and deceptive.

Among the rumors was the assertion that the AMPTP had a groundbreaking proposal that would make this negotiation a "done deal." In fact, for the first three days of this week, the companies presented in essence their November 4 package with not an iota of movement on any of the issues that matter to writers.

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.

From 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).

The AMPTP says it will have additional proposals to make but, as of Thursday evening, they have not been presented to us. We are scheduled to meet with them again on Tuesday.

In the meantime, I felt it was essential to update you accurately on where negotiations stood. 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.

The AMPTP's intractability is dispiriting news but it must also be motivating. Any movement on the part of these multinational conglomerates has been the result of the collective action of our membership, with the support of SAG, other unions, supportive politicians, and the general public. We must fight on, returning to the lines on Monday in force to make it clear that we will not back down, that we will not accept a bad deal, and that we are all in this together.

Best,
Patric M. Verrone
President, WGAW

Michael Winship
President, WGAE

_______________________

Negotiations start up again on Tuesday. The only good news is that they are agreeing to continue to talk, but are they both interested in resolving this strike or is this just further delays and more a giant production spectacular, all glitz but no substance!

Hulu or Hula

Have you tried googling the NBC/Fox site for video content and found yourself calling it H U L A and not H U L U. Where one is a Hawaiian dance, the other is the offical website. As it relates to building a brand message, I wonder if that confusion will help or hurt the site. Should Hulu buy the hula website and redirect people to the correct site or has some entrepreneur already picked it up in anticipation of that economic opportunity.

By the way, the correct site is Hulu! :)

Networks set for $120m from web ads

According to the article, the big four networks, ABC, NBC, CBS and Fox are in line to earn $120 million in ad revenue this year from online advertising. And the growth continues to skyrocket. What is not mentioned is whether the same networks are seeing a decline in ad revenue from their video product. And while ad dollars have moved from broadcast to cable, each of these networks own multiple channels in each space as well as building or acquiring web space. So it is likely that this $120 M in online revenue is incremental growth and not cannibalization from other products. "The total online video advertising market will be worth close to $1.3bn this year after doubling in size in 2006, according to Accustream, the digital media research company."

And with content needed to fill all of these buckets, it is clear that it cannot be done without strong compelling content. I hope that the news blackout on the current negotiations between writers and producers is indicative of a real attempt to find a solution.

And with stories like these, the writers' point is clear; there is revenue being produced from this hard work.

Web bubble 2.0 for social networks?

Is social networking more fad than future? How do the applications of social networking converge with the entertainment media? ABC has just announced a relationship with Facebook and Fox and My Space are adding more newsfeeds to their site. So it is hard to imagine a bursting bubble, but more change is coming. levels of sharing of personal information must occur. I for one am not sure I want to mix my business social net circle with my personal circle.

The best opportunity for social networks to change is with video applications. As IP TV becomes more a reality, this convergence should become even easier for the consumer to enable and enjoy. Opinions registered right on the screen and easier interactivity for the average non-tech consumer to handle.

Also from Media Week, "Worldwide shipments of multimedia-enabled mobile phones will exceed 300 million units next year, surpassing shipments of television sets, according to a research report by MultiMedia Intelligence. By 2011, about 9 of 10 mobile phones will include capabilities such as video playback" Technology is enabling more social networking, not bursting it.

The End of Print Newspapers?

It seems that Tom Brokaw has made an interesting prediction, that in 10 years, print newspapers will go the way of dinosaurs. That must be welcome news to Amazon's Kindle and other portable devices. And as we begin to get more and more environmentally friendly, the reduction of paper use must be a welcome relief.

As a fan of newspapers and magazines, I will find it hard to completely move away from the tactile feel of turning the news pages and cutting out coupons. And the ability to lighten my load of the paper, once read, from my briefcase to trashcan. And how many devices must I constantly carry - cellphone, PDA, and now reader. Plus all the unique chargers to keep these devices working. My briefcase is getting heavier just thinking about it. And the paper reduction now leads to more electronic consumption. Will global ecology efforts ever improve.

Yes, digital consumption continues to grow and the print media will no doubt be affected by this convergence. But we will always need content and journalists, no matter what the media they write to (cave walls, newspaper, electronic), is what we will always consume. Professional, intelligent, thoughtful content. This too is what the writers strike is all about. I just wonder ultimately what the device will look like to feed our reading passion.

Writers Strike negotiations to resume Monday

Great video from SNL's Will Forte and Kristen Wiig. Lets hope both the writers and producers come to the table with the intent to find a win-win resolution. I want to see professionally produced content come back. Reality TV has its limits too. Happy Thanksgiving!

Kindle update

From Valleywag - great comparison!

Amazon creates Kindle for a Digital Read Experience

Last night on the train ride home, as I was reading my book, I noticed my seatmate trying out her new Kindle reader. And as a technophile, I was intrigued by its sleak look and its readability, even from my sideways angle.

And yet, I did not feel compelled to keep looking over her shoulder. As a fan of reading, I love the feel of a book. And I love the chance to share what I have read to others. In fact, my current book is a recommendation from my wife who passed on the book from her to me. I am thoroughly engrossed in its story.

At some point, books stack up on the shelves. Some are shared with friends and family. Some remain to be re-read and enjoyed again; others sent to the local library or book fair for others to enjoy. Is Kindle the reader that changes that dynamic? At some point it will. Chnage is inevitable; when did you stop using the yellow pages to get your business phone number and went to the web instead.

But I don't think Kindle is the answer to the book reader yet. In today's environmentally friendly world, it may make most sense to replace the daily newspaper or weekly magazine, which tend to be read and recycled quickly. But for now, I don't think the book reader will find Kindle advantageous.

How many friends can you have

Terrific article in today's WSJ about the social networking phenomenon. And while business networking sites like Linked in may be more effective the larger your contact base, it, like Facebook and My Space, does lose its effectiveness as the number of "friends" increases.

At some number, those friends have to be divided into groupings - Best, good, and once in a blue moon. In the beginning, it's great to be linked to everyone, but as the number of contacts swell, I find myself not even looking at some of those friends updates as often. And as the article suggests, these sites are simply passive connections; real friends physically keep in touch.

So is social networking a fad or future. How we take back our lists and determine our core relationships from our secondary ones may impact its value. I just hope the sites don't inform you that you have been "DE - LINKED" or "UNFRIENDED"!!

Writers Strike continues to Stop Production

It looks to be a loooooong strike and as more productions stop, NBC has already pulled out of the TCA press tour. It sounds like other big studios will follow and call this season a do over. The shame is that corporate and shareholder responsibility take a front seat, while social responsibility takes a back seat. Should the writers have gone on strike as opposed to work without a contract, I had hoped so. But they didn't, and the studios are using it as an opportunity...yes, an opportunity, to lay off many people and save costs. Will they get hired back when the strike ends? Who knows. But likely, staff will be reduced and budgets cut on EVERY show. And yet, it is these people, formerly employed by the studios, that they should have protected. It is them that will help them get into the digital age, doing the actual production dirty work to get the content looking great. The studios should have treated their own production crews as allies, rather than after thoughts.

Digital media is changing the world. The only thing constant is change. But as traditional revenue sources shift because of new technologies like Tivo and DVRs, cellular and wireless, VOD, streaming, and downloads, it opens up the mind to endless new opportunities for new revenue streams. The potential is there for Hulu and Joost and others to succeed. The shift has already started and the writers don't want to lose their fair share. And studios deserve to earn their profits. The pie's slices may be different sizes, but they are changing every day. Get back to working toward a resolution; treat the slices as one pie and decide on a fair percentage regardless of how the pie is cut.

There is enough to go around; if you work together, the new doors will open wide and all will win!

Big Screen vs Little Screen

Today, I met a person who said he didn't own a TV. He relied on the web for his news and public establishments when watching a game. And does he watch episodes through players like Hulu, I asked. Not really, was his reply.

I happened to watch a :30 Rock episode recently on Hulu, and while I like the quality of the video, I missed the intimacy of watching on a bigger screen TV. if I could have watched the same video on VOD, I would prefer that format. But I wonder if I am unique in my preferences. And until the big screen TV is simply a monitor for streams from the computer, how I differentiate the two.

I see Hulu and You Tube as a secondary way to stay close to my favorite shows. There value to promote the brand, not replace. It keeps you close to the show until the next episode is ready to air and lets funny, or interesting, water cooler moments be shared across the web.

Let's get this writers strike settled, let's get everyone back to work, and let's put on great content.

Writer's Strike, Who Benefits, Who Gets Hurt

Some may argue that the writers strike actually benefits both the writers and the producers. For each continues to have alternatives to make money while the strike continues. For the producers, some have argued, that the strike enables them to fire all, cut costs, and get a do-over. Some believe that they are so disappointed with this year's crop of new shows and some old ones, that they can clean house,and use reality and news to offset their loss. For the writers, shows that are in the can and being aired new or in syndication, the writers, and even actors, continue to receive royalties. So the income continues to come in. Thus no need to settle early and leave potentially lucrative new sources of income on the table.

So who gets hurt, first all the behind the scenes people, who work tirelessly to make the creative side look good. They have been the first laid off, without a layoff package, potentially without healthcare, and truly with an uncertainty whether to wait out the strike and hope to be rehired or seek other employment. It is a no win.

The viewer loses, but not nearly as much. Unlike the last writers strike, there are new opportunities to view old shows missed the last time, or start watching their dvd collections or further embrace web based programming. And so the crux of the writers motives. Viewers, writers, actors, producers will all survive. For production and back office, it is another story.

Hulu looks great

I put my email address on the hulu website and was fortunate to get a password sent to enjoy the beta version. And while I can't understand why the investment in hulu to promote NBC shows, when nbc.com should be that resource, I do have to say I like the easy navigation that hulu offers. The nbc.com website comes across too cluttered and hard to navigate. Think you clicked a link to full episodes, but find your self on another general page. To many clicks to hard to get what you want quickly.

Hulu, on the other hand, has created a nice clean player, easy navigation, and at the moment, no full frontal assault of advertising. And while the NBC and Fox partnership may have created a nice new business, I continue to wonder why you couldn't take all this same learning and simply apply it correctly to your own network website. Hulu doesn't easily roll off your tongue and too many times I want to type H U L A. Thank goodness for bookmarks.

I like the concept of Hulu, I just don't like the clutter of a hundred different websites offering the same things, or each site offering something slightly different: one for downloads, one for streaming, another for clicks, a fourth for fan user generated versions. Rather, organize one website cleanly with easy search and quick access. Do we need hulu, no; but we do need the kind of thinking that makes for better synergistic use of the web and TV.

Data: U.S. Internet Advertising to Double to $42 Billion Over Next Four Years

Why are the writers striking - well with announcements about the growth of internet advertising, it's no doubt that everyone, writers included, want their "fair share" of the pie. Still,the number not mentioned is the overall growth of advertising spent, regardless of where. Does more choices for viewing, TV, DVD, broadband, mobile, equate to growth of viewing or simply redistribution of the same pie? Are the dollars moving to internet coming from something else? Is the overall growth simply inflation? My advice to both parties, find a fair % of the action regardless of the distribution method. You get paid a lot, the percentage is bigger; if you say there is no revenue, the percentage of nothing remains nothing.

Yes the times are different and consumers can flock to other resources to be entertained. But quality content still requires quality writing. How long this strike will take will depend on how soon the viewer gets bored with user generated and amateur videos and keeps asking for new fresh professional content on these new distribution outlets.

With the writer's strike everyone loses

There is truth in the line, "Those that forget history are bound to repeat it". The lessons of a strike hurt everyone, including the ones that are striking. And while it is a tactic in the fight for a better contract, it is far better to stay at the table and bargain in good faith, then hit the strike lines.

The repercussions of this strike go farther than just the two sides. Its economic ramifications hit far. Those other folks working on the show, are no longer working either. it takes many talented people, beside the writers, to turn the words into a show or movie. The networks, cable, and even new distribution platforms like Hulu and Joost are affected. No new shows, no new advertising revenue. And as consumers and viewers, we fall out of the pattern of watching these shows. That means that the shows lose their loyal base. Viewers find other things to do with their time and once they leave, it is harder to win them back.

And so there are no winners to a strike, only losers. So lets hope for a quick and equitable resolution.

Writers Guild Negotiators Eye Monday Strike

Just an absolute shame if the writers strike. it seems that the writers feel shortchanged from their last deal and their negotiated DVD percentage of payments. What is clear is that as technology has created new distribution platforms, new revenue opportunities exist and all people involved in the creation of original content deserve their "fair share" of the profits. I only hope that they come to agreement quickly.

NYT Site Unveils Revamped Tech Section

The New York Times seems to get it. Revamping their technology website and aggregating content from across other multiple sites along with the Times own expertise. It is taking the power of the New York Times brand to bring people to your site, the synergy with the press edition to market it, and the variety and depth of content to keep users inside its pages. And with compelling content and strong promotion, I have no doubt the Times will see longer page views and more users to their technology website. Now instead of accessing multiple web pages, the user gets all the editorial from other sources pulled onto one page. The same principal should be employed across all the other sections of the NY Times website. While the paper has always been a must read, providing access to related content from outside their site, will make the online edition a must read as well.

Marketing Rules Apply: No Joke: NBC Expected to Shutter DotComedy

The news that NBC is shutting down a small website - Dotcomedy - should come as no surprise. It has nothing to do with the quality of the site, although I don't recall ever looking at it before today, but to classic marketing. There are too many internet sites, many that look like each other, and so has become too fragmented for its own good. The NBC brand is very powerful and to dilute it with other brands that don't connect back to a bigger brand makes no sense. It would make more sense to push the individual brands like SNL in these new spaces, a strategy Comedy Central is employing with its content, including the Daily Show. People know and love these brands and tend to expect them to house their own content.

And what of the content original to the web. They gain by attaching them to those better known brands. It's the Mall strategy; get them to the big box stores and once they are there, encourage them to visit the boutique stores in the space. And so, my advice, make the NBC brand the home page that aggregates all the other brands. Push your viewer inside the NBC mall and from there make it easy to find the content they seek; oh and why they are visiting, check out the other smaller content sites too.