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New Media
Revenue Brings Growing Pains for Profit-
"Participation in revenue gained in all media
outlets, whether now known or hereafter devised."
This is standard jargon that I've seen included
for years in any option deal for creators and
producers of a new tv show or film. Producers and
Agents have long known that content produced could
bring profit from more venues than just the
boob-tube or cineplex, and the digital age has now
brought that to a very lucrative reality for those
producers, networks and studios.
Today, the Writers Guild
of America called a strike for the first time in
20 years, pitting the writers against the
distributors in a mellee over that new media
revenue.
As an example, and
negotiated by the Writers Guild, a writer who
is creating and writing a weekly series will be
paid royalties on televised episodes in addition
to their weekly salary. What the WGA didn't
anticipate was the additional profits via new
media (internet and cell phones) earned by
the networks that can potentially dwarf the
revenues the networks currently receive from
television advertisers. Networks and Studios
have turned a cheek at sharing more profits from
the new media money sources by calling the
distributed content "promotional pieces". This is
what the AMPTP (Alliance for Motion Picture and
Television Producers) is demanding, and it's no
surprise the Writers Guild voted to strike. It's
an unfair relationship handed down by those
collecting new streams of revenue hand-over-fist.
Yes, networks
deserve their ownership rights because they risk
the money to physically produce and market the
show, but this is a business of artistic
collaboration, not widget manufacturing.
The writer of a motion picture or network series
earns less money per DVD sale than the
manufacturer of the plastic box the DVD is
wrapped in. 'Something like 4 cents residual
earning on a $20 DVD sale. The same situation
stands for streaming video and downloads of
entire tv episodes and movies sold as
"promotional material". The studios and networks
didn't invent the cell phone or streaming video.
They simply found a new way to sell the product
that professional writers created.
The career of a writer is
wrought with uncertainty and volatility. If
creation and writing is the lifeblood of the
industry, then its only fair to give writers a
fraction more stability in their lives by sharing
the new media revenue.
As for the state of
the union? Get ready for a long ride on re-runs,
and yes, MORE REALITY SHOWS! If you're running a
network or production company, and anticipating a
stalemate as long as the '88 strike, then it's not
going to take long for you to
fill your programming board with more
reality-based projects that are producer driven.
Especially when advertisers apply pressure for new
highly marketable hits in a time when people may
tune out.
The
TV Writers
Vault
does anticipate heavy activity from production
companies scouting new unscripted formats for
reality-based series and documentaries, as well
as most scripted genres. The development process
is a long one, and most companies won't slow
acquisitions, but only shift their focus from
scripted to unscripted.
It's my hope that
in the end the new media markets will provide a
foundation of support for writers and creators
in all genres of television. It's the AMPTP's
responsibility to let that happen.
Scott Manville
President - Tell A Vision Ventures, Inc.
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Scott
Manville
