What's At Stake In The Writer's Guild Strike

This post, written by Lindsay Beyerstein, originally appeared on Majikthise

The film and tv writers of the Writers' Guild of America are going on strike today, for the first time since 1988.

The writers' contract expired on Wednesday. Negotiations broke down Sunday night between the guild and the Alliance of Television & Motion Picture Producers, despite the intervention of a federal mediator.

It's well-established that writers in these industries get residuals if their work gets reused. Residual rates depend on the medium (broadcast vs. cable, etc.) and the revenue model (advertising vs. subscription).

The writers wants a contract that addresses the ways in which their work is used today.

"The studios are reluctant to make a binding deal on digital distribution issues because they say it's too soon to determine what format will end up being the most successful," according to an article in today's Wall Street Journal.

A bulletin from the WGA sums of the issue as follows:

The Internet is a new distribution channel, and we believe the existing provisions of the MBA require residual compensation for our work when it is re-used on the Internet. Management, however, has refused to accept this interpretation, and has even threatened to do away with residuals altogether in this new medium, or to impose the outdated and unfair home video formula. Given that residual income can amount to between 20 to 50 percent of a writer's income, we clearly can't allow management unilaterally to dictate this most essential contract term.

Now, to jurisdiction: First, we must establish once and for all that writing for new media is covered by our MBA. With increased viewers and ad dollars on the Internet, we must secure our future. The Internet, cellular phones and other new distribution technology are simply channels for viewing the content we create. Again, our position is simple and fair: when we create valuable content for the Companies, we deserve to be paid.

Management can't arbitrarily stipulate that some media are off limits for negotiations. The AMPTP's position is illogical, greedy, and unfair.Obviously, the two sides still have to work out what the compensation rates will be. And the time to do that is now, when the new contract is being negotiated, not later when management feels it has enough information.

When a contract comes up for renegotiation, both sides go to the table with the information they have. You strike a deal today based on your best guess about how things will play out. Last time, the WGA miscalculated about the value of the DVD market and made concessions they later regretted. Time will tell who gets the better end of this deal.

The high handedness of the AMPTP is just stunning.

UPDATE: Stewart to Pay His Writers Out Of Own Pocket During WGA Strike

In a show of solidarity with his fellow scribes, the Daily Show host has told his writing staff that he will cover all their salaries for the next two weeks, according to a well-placed source. He has also vowed to do the same for writers on The Colbert Report. A Comedy Central spokesman referred my inquiry about this to Stewart's personal publicist, who has yet to respond.

Stewart's intention, says the source, is to ensure his writers will face no financial hardship should the strike, which kicked off at 3 a.m. local time, conclude within that timeframe.