Issue of the week: Why TV writers are celebrating

The writers saw the future of television and went on strike to win a piece of it, said Economist.com. And after 100 days on the picket line, they succeeded. Under a tentative agreement struck this week by the Writers Guild of America and television produc

The writers saw the future of television and went on strike to win a piece of it, said Economist.com. And after 100 days on the picket line, they succeeded. Under a tentative agreement struck this week by the Writers Guild of America and television producers, writers for the first time will earn a small cut of the revenue—2 percent or 3 percent—generated by programming streamed on the Internet. They also doubled their share of revenue from programming sold via downloads. “If the Internet is the future of video content, as many people believe, the agreement could greatly benefit Hollywood’s scribes.” But there are some catches. The payments for streaming start only after a show has been online for 17 to 24 days. The writers also dropped their demand for a larger cut of DVD sales, and they failed to extend the deal’s terms to cover writers for reality shows and animated series. “That is important: being able to fill holes with reality shows protected the media companies financially during the strike.”

Overall, the writers should feel pretty good about the outcome, said David Carr in The New York Times. Getting a piece of digital revenue was “a major concession from management” and represented “the kind of victory that has largely eluded organized labor in the past few years.” Of course, it could be years before programs on digital platforms such as PCs, iPods, and mobile phones throw off significant revenue. Meanwhile, the strike gave TV production studios an opening to change the system for developing new shows. Until the strike, studios paid writers “lucrative stipends to come up with shows that might not ever be broadcast.” Studio heads vow that going forward, they will commission far fewer such “pilot” episodes. And “what about viewers, the real victims of the strike, deprived of new episodes of Heroes?” It can’t have escaped the attention of either the producers or the writers that while the strike dragged on, for the most part “the public shrugged and worked on their Guitar Hero chops.”

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