Strike Officially Over - Contract Ratified with 93.6% Approval

(The following is a letter from the presidents.)

To Our Fellow Members:

Today, it is our pleasure to inform you that members of the Writers Guilds of America, East and West, have voted to ratify the MBA contract with 93.6% approval. With a total of 4,060 votes cast, the tally was 3,802 to 258. These numbers reaffirm the tremendous level of support and commitment our membership has continuously demonstrated over these last few crucial months.

We are also pleased to report that the trustees of our health fund voted yesterday to follow the recommendation in our strike settlement agreement to provide additional coverage and an extension of the earnings cycle for a full quarter (three months) to participants who would otherwise lose health coverage following an earnings cycle that included all or a portion of the strike period. Participants whose health coverage is paid for by points will only be charged points if they have ten or more points as of April 1, 2008.

As we close this chapter in our union's history, what we together have accomplished should not be underestimated. The 2008 MBA establishes a beachhead on the Internet and in new media that will guarantee our share of a potentially vast and bountiful future. Writers already are working on new media projects under this agreement and residuals must now be paid for streaming and downloads of our library of films and TV shows.

Language in the contract will allow us to monitor and audit these new technologies and new business models, but it will take vigilance on the part of our membership to make sure that original Internet writing is done under a WGA contract and with appropriate terms and conditions.

The same sort of vigilance will be needed to assist members of SAG and AFTRA. They are about to go through a similar process to the one we experienced. Their support of our cause was invaluable. We must use all our efforts and experience to support them as well. Further gains that they can achieve will have an immediate, positive effect on our contract.

We must take our newfound spirit and unity and use it to move our two unions forward. We look to the future and our newly revitalized member engagement to reaffirm writers as the first among equals in the most collaborative art form in history. As the last few weeks proved once and for all, we are all in this together.

Best,

Patric M. Verrone
President, WGAW

Michael Winship
President, WGAE

Letter from The Presidents to Membership

This was sent today to WGA members from Presidents Verrone and Winship:

To Our Fellow Members:

On Tuesday, members of the Writers Guilds East and West voted by a 92.5% margin to lift the restraining order that was invoked on November 5th. The strike is over.

Writing can resume immediately. If you were employed when the strike began, you should plan to report to work on Wednesday. If you're not employed at an office or other work site, call or e-mail your employer that you are resuming work. If you have been told not to report to work or resume your services, we recommend that you still notify your employer in writing of your availability to do so. Questions concerning return-to-work issues should be directed to the WGAW legal department at 323.782.4521 or the WGAE’s assistant executive director Ann Toback at 212-767-7823.

The decision to begin this strike was not taken lightly and was only made after no other reasonable alternative was possible. We are profoundly aware of the economic loss these fourteen weeks have created not only for our members but so many other colleagues who work in the television and motion picture industries. Nonetheless, with the establishment of the WGA jurisdiction over new media and residual formulas based on distributor’s gross revenue (among other gains) we are confident that the results are a significant achievement not only for ourselves but the entire creative community, now and in the future.

We hope to build upon the extraordinary energy, ingenuity, and solidarity that were generated by your hard work during the strike.

Over the next weeks and months, we will be in touch with you to discuss and develop ways we can use our unprecedented unity to make our two guilds stronger and more effective than ever.

Now that the strike has ended, there remains the vote to ratify the new contract. Ballots and information on the new deal, both pro and con, will be mailed to you shortly. You will be able to return those ballots via mail or at a membership meeting to be held Monday, February 25th, 2008, at times and locations to be determined.

Thank you for making it possible. As ever, we are all in this together.

Best,

Patric M. Verrone
President, WGAW

Michael Winship
President, WGAE

How to Vote by Proxy and What That Means

Voting on whether or not to lift the restraining order (legal jargon for calling off the strike) will take place in person at two meetings, one in NYC and one in LA.

If you cannot attend the meetings, you may vote by proxy. Today, there has been some confusion on what "voting by proxy" means. Faxing in a proxy vote form is NOT the same as voting. You are designating a fellow WGA member to vote on your behalf.

Obviously, you need to be sure you designate someone who will vote in accordance with your wishes.

Full info:
WGAw web page and WGAw proxy form

Designate your proxy and fax to (323) 421-9177.

WGAE web page and WGAE proxy form

Designate your proxy and fax to (212) 582-1909.

U.H. Editorializing: DON'T BLOW THIS OFF! The west board and east council decided to continue the strike for an extra 48 hours so your voice could be heard. Make the most of it and vote.

WGA Press Conference Today

This media advisory was just sent out by the WGA:

The Writers Guild of America will hold a press conference today, Sunday, Feb. 10, 12 Noon PST, at WGAW headquarters to update the media on important developments related to contract negotiations between the WGA and the AMPTP companies.

Scheduled to appear: WGAW President Patric M. Verrone, WGAE President Michael Winship (available via phone line), WGAW Executive Director and Chief Negotiator David Young, and WGA Negotiating Committee Chair John F. Bowman.

What Happened at the Big Meeting?

The negotiating committee and the board came out to a full house at the Shrine Auditorium. They were met with a standing ovation. Standing ovations continued through the meeting as Verrone congratulated the membership on its efforts over the last three plus months. Bowman discussed what the nature of negotiations were like on the inside, where we started, and what we've gained. David Young went through the deal point by point. Then, the floor was opened for Q&A.

Verrone announced at the top of the meeting that we would have a 48 hour membership vote on whether or not to lift the strike. Members will be notified tomorrow or Monday by email or phone about the strike lift vote. Then, likely on Tuesday (details are still being worked out) there will be a time and place that the general assembly can meet and cast their ballots. Members will also be able to vote by faxing a proxy ballot to the guild. The votes will be counted, and if it passes - we go back to work - tentatively on Wednesday. We then begin the 10 day ratification vote on the contract. (I assume this will happen whether or not members vote to lift the strike, however it may be a cross-that-bridge scenario.)

During the Q&A period, members offered many congratulations to the Negotiating Committee for their tireless work. There were also concerns raised about the 17 and 24 day windows of free content reuse on the internet, the lack of larger gains for cable syndication, and other legal language questions. However, overwhelmingly the crowd was pleased with the trailblazing the NegCom had accomplished in New Media: distributor's gross, separated rights, and percentage-based residuals.

Overall, the atmosphere was very upbeat, more so than many had anticipated. At times it felt like a victory rally. In fact, as of 10:30pm, there was only one openly hostile question during the Q&A session. It focused on the 17-day window for ad-supported streaming. Interestingly, the man who posed the question (pointedly saying, "You guys blinked.") drew some applause at first, but then elicited groans as his anger rose and he refused to relinquish the microphone. Many members have grave concerns about the 17-day window, but not to the same extent as that gentleman, who stormed from the room amid uncomfortable chuckling. That was the only moment of tension in what was, on the whole, a very inspirational evening.

If you're a guild member expect a call or email in the coming days to notify you of the vote. If you don't think the guild has your current phone number or email address give them a call with your updated information.

Letter To Membership From WGA Presidents

This was sent today to WGA members from Presidents Verrone and Winship. Emphasis is mine -- because I think it's incredibly important. --LK

To Our Fellow Members,

As Negotiating Committee Chair John Bowman wrote you last night, we are continuing to negotiate the terms of a tentative agreement with the AMPTP. We anticipate that we will be able to present the terms of that agreement to you in the next few days. In order to have a full discussion with you of the terms and how they were reached, and in order to get your input before making recommendations or decisions, we have scheduled membership meetings for current-active members only for this Saturday, February 9, in New York and Los Angeles.

The New York meeting will take place at 2 pm ET in the Broadway Ballroom of the Crowne Plaza Hotel at Times Square, 1606 Broadway (Broadway and 49th Street).

The Los Angeles meeting will take place at 7 pm PT in the Shrine Auditorium (665 W. Jefferson Blvd.).

We urge you to attend. We have gotten to this point in our negotiation as the direct result of the power of this strike, which each of you has generated. Neither the Negotiating Committee, nor the West Board or the East Council, will take action on any contract until after the membership meetings are held and your voices have been heard. We are all in this together.

Best,

Patric M. Verrone
President
Writers Guild of America, West

Michael Winship
President
Writers Guild of America, East

Gelbart and Russnow: Be Skeptical of the Rumors and the Media

Tonight, I received a call from Larry Gelbart. Technically, it was Robot Larry Gelbart, via an automated call system. (During the strike authorization process, I received a call from Robot Stephen Gaghan.) Larry's message dealt with the rumors and media reports of the past 48 hours. His advice: "Lay them aside and pick up a picket sign."

We will try to bring you the full text of his message. (I'd transcribe it, but I'm too busy partying because the strike's totally over.)

On the same topic, Michael Russnow's latest has hit the HuffPo:

The press, in reporting on presumptions and generalities is acting irresponsibly, and we should sit back and hope for the best. We should make no noises to interrupt the deliberations, because to do so might impel the WGA Leadership to take a deal that it might have bettered were the AMPTP not to have heard too much passion -- read that hunger -- from a Membership whose fortitude they perceive is crumbling.

Also, here's my favorite report of the night: Nikki Finke writes that she's received lots of email claiming that Peter Chernin of Fox said "the strike is over" while at the Super Bowl. Which immediately makes me picture a catering dude standing behind the chafing dish of wings in the Fox skybox, madly thumbing away at his Blackberry.

UPDATE: Here's the transcript of Larry Gelbart's message:

This is Larry Gelbart. In all my decades as a member of the WGA I’ve learned a few lessons about strikes and negotiations, the most important being that it’s never over ’til it’s over, no matter how much the lady singer might weigh. As fellow and sister members of the Guild, you know how important the issues are for all of our futures, and for those to whom we will one day hand our pens. Over the coming days you will be getting calls asking you to join in to continue with the picketing. I ask you to set aside all the rumors, all the second-guessing, I ask you to set these aside and pick up a picket sign instead. I cannot stress how vital it is for all of us to show our commitment to our leadership during this current round of negotiations. Thank you.

LA Times Reports on Progress In Negotiations

The media blackout continues, although it's getting hard to tell. Today's Los Angeles Times is running a front page story titled "Writers, Studios Outline A Deal."

It has some of the most detailed information to date on how the informal talks have gone so far. When we compare it to what our off-the-record sources are saying, it appears to be fairly accurate.

We'd like to highlight the following parts:

Who did the negotiating?

David Young, Patric Verrone and John Bowman on the WGA side, and Peter Chernin and Bob Iger on the companies' side. From the Times:
That stood in contrast to previous sessions with the writers in which top media executives weren't at the bargaining table and were led instead by Nick Counter, president of the producers association, and labor relations executives from the major studios.

Is the deal done?

No. As we mentioned in an earlier post, details are still being hammered out, and contract language is key. Until that language is drafted, nothing can be considered to be truly "done." To be as clear as possible: Things that are agreed to in the room aren't "real" until we have at least a serious start on contract language, and even the most optimistic estimates say that process will take a week.

Attorneys from the studios and the guild were meeting over the weekend to discuss contract language for the proposed agreement, which would need to be ratified by the union's 10,500 members. Even before a vote by members, the strike would probably be called off if board members strongly endorse the deal.

There are some issues that have yet to be resolved, including defining what qualifies as promotion on the Internet. The debate centers on the extent to which networks can run video clips and other materials on their websites to promote TV programs before paying writers.

Is this deal a carbon copy of the DGA deal?

No. It appears to use the DGA deal as a template, with key adjustments for writers.

On Friday, however, studios offered some key concessions to ease those concerns [that the DGA deal was inadequate on streaming and Internet-first jurisdiction] and keep the talks on track. Those included more favorable pay terms for streaming than those offered to directors. Studios also offered "separated rights" provisions for shows created for the Web, ensuring, for example, that writers would receive extra compensation and credit for online shows that spawn TV pilots, two people close to the talks said.

What happens now?

Verrone, Bowman and Young are expected to present a summary of the deal points to the Board on Monday.

Then, over the course of next week, the contract language will be drafted, to protect/assure everyone's understanding of the deal points insofar as possible.

By Friday at the earliest, depending on how well the drafting goes, there could be a preliminary contract with all the most important areas covered. Despite the LA Times' assertion that contract will be "final," that seems to be an imprecise use of the word.

A final contract could be presented to the Writers Guild of America board as early as Friday, according to three people close to the talks who asked not to be identified because the negotiations are confidential.

As Mark Evanier has pointed out, "final" wasn't reached in the 1988 strike until well after everyone had gone back to work.

Does this mean it's over?

Not yet. The only leverage writers have to make sure the deal points agreed to in the room actually end up in the contract, is to stay strong and united until the contract language is drafted. And not to be alarmists, but keep in mind who's in charge of that on the companies' side:

Having done the heavy lifting, Chernin and Iger will now step back and rely on labor relations executives to formalize contract language this week.

These "labor relations executives" are some of the same folks who stalled negotiations with the WGA for months. Iger and Chernin had to step in themselves -- both with the DGA and with the WGA -- to get anything substantive accomplished. And we've learned from off-the-record sources that while the DGA contract language was being drafted, there were at least two occasions when the DGA's understanding of the agreement differed from the labor relations executives, and a CEO had to personally intervene to keep the process on track.

We desperately hope that, in this case, that won't happen. There's too much at stake for the knee-jerk legal norms of Hollywood to kick in, in which it's the job of Business Affairs to try and whittle down the deal in the contract stage while claiming "but that's not our understanding of what our bosses said." (This is a more common experience among screenwriters than TV writers, because TV contracts tend to have more uniformity. There's no "boilerplate" to use in an historic negotiation like this, so we can expect the drafting to take a little time.)

We hope the drafting will go smoothly. But we have to be prepared that it might not.

And all of the above assumes that when the deal points are released and the contract language drafted, that the membership at large will ratify it. Each of us has a vote, and we must decide for ourselves if we can live with what this deal delivers for the next three years.

We'll see it soon. And then we'll all decide.

It's Not Over 'Til It's Over -- And It Isn't Over

Mark Evanier provides some very wise precautionary words on his blog News From Me, putting what's happening in negotiations in the context of past strike experiences. Here's an excerpt:

... it's a fine, even prudent idea to not get one's hopes too high. It is a not uncommon negotiating technique to get the other side into the mindset that the deal is done, and then to throw in a last second demand. In past WGA-AMPTP contracts, negotiating has even continued after the deal was made and ratified. Weeks, even months after the '81, '85 and '88 strikes were settled and work resumed, reps from the studio side were still arguing over what had been agreed to, insisting that their notes said we'd agreed to X when we were certain we'd consented to Y. And even when we all agree on what we all agreed upon, we can't always agree on the interpretation of some clauses and codicils.

And Alfredo Barrios' piece, The Strike Is A Lawyers' Game, is something we should all reread right now -- especially the latter part of the essay, where he talks about how to get Nick Counter out of the equation -- and many of his predictions have come startlingly true. An excerpt:

And by taking the fight to them, I mean, maintaining picket lines at the studios at peak levels, relentlessly picketing locations, continuing to put out creative videos that entertain and inform people about the strike, denying waivers to award shows and picketing those shows, seeking alternative ways to put out creative work on the Internet for pay, etc.

Playing this kind of offense serves a couple of purposes. First, when a CEO drives through the studio gates, or hears about how a location shoot was impacted by picketing (like for example, when an actor leaves the set or a day has been added to the schedule), or sees how his untenable bargaining positions are being ripped apart on websites, or is told about how his award show is falling apart, or reads how Google is about to form a competing entertainment powerhouse, it all collectively begins to call into question the promise that Counter made – i.e., that we would crumble. It’s a daily reminder that we are not losing our resolve. It makes him worry. His expectations aren’t being met. Things are uncertain again. And it begins to chip away at Counter’s credibility as the guy who could resolve the strike with minimal inconvenience to the studio CEOs.

This last point is important. Why? Because the way you win is by taking the lawyer out of the equation. Deny him the promise that he made to his client – i.e., that he would add value by battering all of us down. Once the CEOs begin to believe that we’ll stick to our guns until we get a fair and equitable deal, that’s when we’ve won. That’s when the CEOs and their CFOs will step in and begin to deal directly with us. Why not Counter? Because his job wasn’t to deal with real and fair numbers; it was to screw us. Once he fails at that, it’s time for others to step in. Trust me, it happens.

He went on to make some predictions about the DGA negotiations:

As the upcoming DGA talks proceed, I predict that Counter will try to ram a really bad deal down the director’s throats. And he may succeed, given the makeup of that union’s membership and their historic appeasement of studios during labor talks. I suspect that whatever deal is reached will be slightly better than what was offered us (it certainly couldn’t be worse) and will be wielded like a stick to beat us into taking it as well. The DGA leadership will certainly have every incentive to spin it as a huge win for them and the industry. How could they not? It costs the studios nothing to take this approach. If we don’t take the same deal, they’re back to dealing with us, and the DGA is the only loser.

As for acting like “nicer” and “more accommodating” guys and gals… Well, let me just say that in all of my years as a corporate lawyer, “nice” and “accommodating” adversaries who never stuck to their guns and didn’t bring the fight to us never got better deals. They only get worse ones. So don’t buy into the our-leadership’s-too-militant line of argument. They’re not. They’re being appropriately tough. Trust me, you wouldn’t want it any other way.

Now it’s up to the rest of us to hang tough with them.

Serious progress has been made, we're told, and we're all waiting to see what it is. But we should all take a breath, and remember: it's not done yet.

NY Times Reports Progress In Talks

As this is written, the WGA and AMPTP are still under a news blackout regarding the ongoing informal negotiations.

However, the NY Times just reported that "major roadblocks" have been gotten past in the negotiations, and progress will be swifter in the negotiations going forward -- with an eye toward an agreement in principle coming out of negotiations fairly soon.

UH has confirmed from off-the-record sources that progress is indeed being made in the informal talks, and that creative solutions to the biggest differences between the AMPTP and the WGA have gotten the tentative and cautious approval of both sides.

This does not mean there is a deal in principle yet. It means we may, finally, be very close to one -- as close as days away.

And while we're cautiously optimistic about what we're hearing, it comes with a real caveat.

Just as happened with the DGA deal, points that are agreed to in informal negotiation can be thought of as points on a deal memo -- but it's the drafting language that comes from hammering out those points that makes them legally binding. And our sources say that draft language doesn't yet exist. That's a big part of what will be happening in the next few days, as negotiations continue.

Until the WGA and the companies have enshrined the deal points -- whatever they are -- into real draft language, those deal points can't be thought of as final.

The only reason we've gotten as far as we have in the negotiations is because the pressure has stayed on. If we let up on that pressure, even a little, it could affect the draft language of the agreement. It could, in a very real way, diminish the power of our negotiators and our Guild now, when it matters most.

Stay out there. Stay on the lines, stay informed. Stay strong. We'll have more soon.

Congressional Committee Urges CEOs to Make Fair Deal

The following letter was sent out today by three members of the US House of Representatives Committee on Education and Labor. (via Variety's Scribe Vibe blog) -JA

February 1, 2008

Mr. Peter Chernin, Chairman and CEO
The Fox Group

Mr. Robert Iger, President and CEO
The Walt Disney Company

Dear Messrs. Chernin and Iger:

As Chairs and Members of the House Committee on Education and Labor, we have monitored the ongoing labor dispute between your company and the Writers Guild of America with particular interest and growing concern. We were pleased to see that, after suspension of formal negotiations, you and the other members of the Alliance of Motion Picture and Television Producers (AMPTP) have convened informal discussions with Writers Guild representatives. The purpose of our letter is to encourage you to seek a fair, just, and swift resolution to this labor dispute.

The television and film industry is a significant part of our national economy. It provides thousands of jobs, directly and indirectly, each year. It generates critical revenue to cities, counties, and states. Its products are among the country’s most valuable exports.

The entertainment industry not only supports writers, actors, and producers but is a major source of middle class jobs for California, New York, and the rest of the country. We appreciate that the issues at stake are critical to the future of your business. As the entertainment industry grows and changes, we hope that any new business models will allow for creative talent to grow with the industry.

Maintaining the middle class jobs that your industry provides is among our greatest concerns. The growing cost of this dispute is of increasing concern in the Congress. We understand that Los Angeles County, for example, has lost an estimated $1.6 billion in economic activity due to the strike. Given the House Education and Labor Committee’s jurisdiction, we are exploring the need for further Committee attention to this matter. The impact of this strike on workers, the industry, and our economy is simply too pronounced to ignore.

We urge you to work to resolve the dispute with a fair and just agreement for all parties as soon as possible.

Sincerely,

GEORGE MILLER
Chairman
Committee on Education and Labor

LYNN C. WOOLSEY
Chairperson
Subcommittee on Workforce Protections

LINDA T. SÁNCHEZ
Member
Committee on Education and Labor

cc: Patric M. Verrone, President, Writers Guild of America West
Michael Winship, President, Writers Guild of America East
Jeffrey Zucker, President and CEO, NBC Universal
Les Moonves, President and CEO, CBS Entertainment
Barry M. Meyer, Chairman and CEO, Warner Brothers Inc.
Brad Grey, Chairman and CEO, Paramount Pictures Corp.
Michael Lynton, Chairman and CEO, Sony Pictures Entertainment
Harry Sloan, Chairman and CEO, MGM

WGA Continues With Interim Deals

This was released by the WGA today:

WRITERS GUILDS REACH INTERIM AGREEMENTS WITH
INTERMEDIA AND THE FILM DEPARTMENT

Los Angeles – The Writers Guild of America, West and the Writers Guild of America, East are pleased to announce they have reached interim agreements with The Film Department and Intermedia. The Guilds continue to sign agreements with companies that value the essential role writers play in making films, television programs, and content for new media.

“Companies like Intermedia and The Film Department recognize the importance of signing a deal that compensates writers fairly for the work they do,” said Patric M. Verrone, president of the Writers Guild of America, West, and Michael Winship, president of the Writers Guild of America, East, in a joint statement. “In turn, we’ve designed an agreement for the entertainment industry that takes into account the economic realities that it faces.”

“We are pleased that we were able to conclude successful negotiations with the WGA so that we can move forward with our production slate across all media, while being able to provide fair and equitable compensation to the writers now and into the future,” said Intermedia President Linda Benjamin. “In light of this agreement, we will shortly be announcing our updated film and television slate.”

Intermedia Film is a global, independent media enterprise with affiliates in London and Los Angeles organized under Munich-based parent company, IM Internationalmedia AG. The core business of the company consists of the development, financing, and distribution of high-quality theatrical films as well as TV productions.

Current and future Intermedia releases include Breach, screenplay by Adam Mazer & William Rotko and Billy Ray, story by Adam Mazer and William Rotko, starring Chris Cooper and Ryan Philippe; The Hunting Party, written by Richard Shepard, starring Richard Gere and Terrence Howard; One Missed Call, screenplay by Andrew Klavan, starring Edward Burns and Shannyn Sossamon; and The Prodigy, written by John Romano, starring Richard Gere.

The Film Department is an independent movie finance, production and international sales company founded by former Warner Independent Pictures and Miramax Films president Mark Gill and former Miramax Films executive vice president and Yari Film Group COO Neil Sacker. With capitalization of $200 million, the company plans to fully finance and produce six films per year budgeted between $10 and $35 million.

The deal with both companies is similar to agreements the WGA recently reached with Lionsgate, RKO Productions, Marvel Studios, The Weinstein Company, United Artists, Sidney Kimmel Entertainment, Spyglass Entertainment, MRC, Jackson Bites, Mandate Films, and Worldwide Pants.

Rumor Mill on Overdrive

Yes, we are hearing the same rumors you're hearing. Repeat: rumors. And last time we all got too excited by such unsubstantiated expectations, well, you know.

So as you get your third email and/or phone call from the guy who knows somebody who talked to the woman who heard from a person "who knows people who know," take a deep breath and read Ray Richmond's column yesterday on The Huffington Post. An excerpt:

With the settlement rumors again flying fast, we are left to question the precise source of said scuttlebutt. Here is one undeniably pessimistic and hardcore but I believe at least semi-plausible theory:

The studios make a deal with the Directors Guild, whose residual guarantees don't come close to matching what the WGA is seeking. A producer rep circulates around the idea that things are looking up and informal talks have commenced. There is a resumption of in-person bargaining, followed quickly by an abrupt break-off and the usual angry recriminations along the lines of "So it seems those arrogant bastard writers think they're worth more than the directors!" and "We held out an olive branch and they ripped it to shreds!". The producers still have done nothing to move the talks forward -- or in truth even start them -- yet can seize the moral high ground. The WGA side will have been lured into a trap. The premise postulates that the studios have zero interest in ever coming to a reasoned agreement but are instead moving resolutely forward on a campaign of solidarity splintering and ultimate guild destruction.

Mind you, this conspiratorial scenario could be 100% (OK, 98%) off-base. An accord might conceivably come today and I'd be exposed as an alarmist whack job -- a development which I would applaud enthusiastically, if slightly sheepishly. We have, after all, seen an increasing trickle of independent production companies breaking ranks and signing their own pacts with the WGA, a list that now includes a couple of heavyweights like Lionsgate, Marvel and the Weinstein Co. Still, there remains unbending unity among the only guys who count: Disney, Warner Bros., Fox, et al.

But let's end here on a buoyant note, shall we? It's a gorgeous January day. The town is buzzing. The writers are picketing. The air is pregnant with possibility. And if you listen really hard, you can make out the glorious sound of thawing ice. On the other hand, that could also just be the moguls rubbing their hands together.

Is the above the worst case and an admittedly "pessimistic" scenario? You bet. Just as all the rumors flying fast and furious the last 24 hours are of the rose-colored glasses variety. So stay calm and wait until we have facts instead of getting too high or low based on a text message based on an anonymous blog post based on a tip from "a guy who knows a guy who talked to a guy."

Lionsgate, Marvel Studios Sign Interim Deals

The following two WGA press releases were sent to media today to announce that Lionsgate and Marvel Studios have both signed interim agreements with the Writers Guild.

LIONSGATE SIGNS INTERIM AGREEMENT WITH WRITERS GUILD

LOS ANGELES – Leading independent filmed entertainment studio Lionsgate is the latest company to sign an interim agreement with the Writers Guild of America. The company is one of the largest independent producers and distributors of motion pictures, television programming, home entertainment, family entertainment and video-on-demand content.

The agreement is similar to the deals the WGA has recently announced with United Artists, The Weinstein Company, Worldwide Pants, Spyglass Entertainment, MRC, Jackson Bites, Mandate Films, and Sidney Kimmel Entertainment.

“We are pleased Lionsgate has joined the growing number of companies that have signed interim agreements with the Writers Guild,” said Patric M. Verrone, president of the Writers Guild of America, West, and Michael Winship, president of the Writers Guild of America, East, in a joint statement. “Lionsgate is considered a leader in the industry, and its signing an interim agreement again confirms that it is possible for both writers to be compensated fairly and respectfully for their work and for companies to operate profitably.”

Upcoming Lionsgate films include Rambo, The Eye, Tyler Perry’s Meet the Browns, Forbidden Kingdom, My Best Friend's Girl, Punisher 2, Saw 5, and The Spirit. Upcoming television series include Weeds (Showtime, fourth season), Mad Men (AMC, second season), and Fear Itself (NBC, debut season).

WRITERS GUILD OF AMERICA AND MARVEL STUDIOS ANNOUNCE INTERIM AGREEMENT

LOS ANGELES – Marvel Studios, a subsidiary of Marvel Entertainment, Inc., and the Writers Guild of America (WGA) announced today that they have reached an interim comprehensive agreement that will put writers immediately back to work on the Marvel Studios development slate. Terms of the agreement were not disclosed.

“We’re very excited about our summer releases, Iron Man and The Incredible Hulk, and look forward to resuming work with writers on our future projects including Captain America, Thor, Ant-Man, and The Avengers,” said Marvel Studios Chairman David Maisel.

“Marvel Studios’ signing of an interim agreement with the Writers Guild is more good news for our membership,” said WGAE President Michael Winship and WGAW President Patric M. Verrone. “Marvel is committed to fairly compensating their writers and now they can move forward with their planned production schedule.”

Marvel Studios recently launched its independent live-action film studio to develop, produce, and fully finance Marvel movies, which will include two of this summer’s most anticipated releases – Iron Man and The Incredible Hulk. Directed by Jon Favreau, Iron Man will be released by Paramount Pictures on May 2, 2008, and stars Robert Downey Jr., Terrence Howard, Jeff Bridges and Gwyneth Paltrow. The Incredible Hulk, which will be released by Universal Pictures on June 13, 2008, is directed by Louis Leterrier and stars Edward Norton, Liv Tyler, Tim Roth, and William Hurt. In cooperation with other studios, Marvel previously produced a long succession of hits, including the Spider-Man, X-Men, and Fantastic Four franchises, Ghost Rider, and Daredevil.

The WGA recently entered into interim agreements with The Weinstein Company, United Artists, Lionsgate, Worldwide Pants, Spyglass Entertainment, MRC, Jackson Bites, Mandate Films, and Sidney Kimmel Entertainment.

Letter From the Presidents - State of Negotiations

(The following was just sent to the membership from WGAw president, Patric Verrone and WGAe president, Michael Winship.)

To Our Fellow Members,

We have responded favorably to the invitation from the AMPTP to enter into informal talks that will help establish a reasonable basis for returning to negotiations. During this period, we have agreed to a complete news blackout. We are grateful for this opportunity to engage in meaningful discussion with industry leaders that we hope will lead to a contract. We ask that all members exercise restraint in their public statements during this critical period.

In order to make absolutely clear our commitment to bringing a speedy conclusion to negotiations, we have decided to withdraw our proposals on reality and animation. Our organizing efforts to achieve Guild representation in these genres for writers will continue. You will hear more about this in the next two weeks.

On another issue, the Writers Guild, West Board of Directors has voted not to picket the Grammy Awards in Los Angeles. Members of the American Federation of Musicians (AFM) face many of the same issues concerning compensation in new media that we do. In the interest of advancing our goal of achieving a fair contract, the WGAW Board felt that this gesture should be made on behalf our brothers and sisters in AFM and the American Federation of Television and Radio Artists (AFTRA).

Best,

Patric M. Verrone
President, WGAW

Michael Winship
President, WGAE

Informal Talks To Begin This Week

This was sent in an email to strike captains:

Informal talks between WGA negotiators and reps for the other side will commence this week. WGA leadership has been studying the Executive Summary of the DGA's Temporary Agreement to determine which parts of their deal might form a framework for our own negotiations with the Companies. While nothing formal has been proposed, and the DGA's full agreement has not yet been released, the willingness of the other side to meet with us is a sign of movement.

WGA leadership remains committed to getting the best deal possible in this contract negotiation, and will issue a formal statement regarding progress as soon as possible.

WGA Begins Back Channel Discussion With AMPTP

UH has learned that as of yesterday, the WGA began an informal dialogue with one of the conglom bosses. The conversations were cordial and respectful on both sides.

This is the way that the DGA talks began -- with informal consultations at a high level between leaders on both sides. It is not negotiation, it's the precursor to negotiation, but the good news is that what Patric Verrone, David Young and John Bowman said at the captain's meeting yesterday appears to be very true: we are finally at a moment where the companies are ready to start seriously bargaining.

A letter was sent to membership last night, asking everyone to be patient and calm as we move forward. As frustrating as it is to wait, it's the best way to get the best deal possible.

From this point forward, if things go well, there will be little to print until the two sides move into formal negotiations -- and we shouldn't take that silence to mean anything negative. The WGA is crunching the numbers, everyone is communicating, and there's every reason to be hopeful.

And although there's a wide spectrum of opinion on the DGA deal, from embracing it to hating it, there's one thing that all commentators seem to agree on -- it was the WGA strike that made the gains possible. We provided the leverage that allowed the DGA to get things (like distributor's gross) that no one believed were possible, and that the DGA would not have even asked for without the backdrop provided by the strike.

Let's make this moment count by staying focused, calm, and ready to listen. [If you're wondering where the "endgame" comment is, I took it out because I realized it was a bad choice of words. I didn't mean in any way to suggest that we let up the pressure. -- LK] Stay on the lines, keep picketing, keep the pressure on. There's room here for the DGA deal to be used as a pattern but still get things that are specific needs and concerns of writers. We just have to let our leadership do the job.

Agencies Confer About DGA Deal

We've learned that a conference call took place this afternoon, with the heads of all the Hollywood agencies, to go through the DGA deal summary point by point.

Among other things that happened on that call was a unanimous feeling that the DGA deal was one they all felt was a good one, considering how entrenched the AMPTP has been up until now. Some aspects of the deal are even surprising (although they noted that some, specifically the ad-supported streaming payments, are not what TV writers had hoped for.) The agents all felt the gains made in the DGA deal would never would have been reached without the WGA strike and SAG's support.

In that call, they also discussed that Peter Chernin called John Bowman today to tell him that the same deal is on the table for the WGA, and to try and open communications for new negotiations between the WGA and the congloms in a positive way.

AMPTP Asks For Informal Talks

Here's the text of the AMPTP's "Joint Statement" on the front of their website. As frustrated as we all have been with the congloms -- 41 days after they walked out -- this invitation is very significant.

Nowhere in the invitation does anyone mention preconditions or thresholds for these informal talks. There are no demands here that we take "distributor's gross" off the table, for example -- which was one of their precondition of resuming talks -- in fact, they just agreed to distributor's gross with the DGA.

So, both in the wake of the DGA announcement and on its own merits, we think this can be seen as progress.

JOINT STATEMENT

The agreement between the Alliance of Motion Picture and Television Producers and the Directors Guild of America establishes an important precedent: Our industry’s creative talent will now participate financially in every emerging area of new media. The agreement demonstrates beyond any doubt that our industry’s producers are willing and able to work with the creators of entertainment content to establish fair and flexible rules for this fast-changing marketplace.

We hope that this agreement with DGA will signal the beginning of the end of this extremely difficult period for our industry. Today, we invite the Writers Guild of America to engage with us in a series of informal discussions similar to the productive process that led us to a deal with the DGA to determine whether there is a reasonable basis for returning to formal bargaining. We look forward to these discussions, and to the day when our entire industry gets back to work.

Doug Liman Forms New Company to Create New Media Content

As we keep talking about here, the future of the industry (for forward-consuming audience, the present of the industry) could be a brave new world of creator-owned content. As horrific as the strike is, it may be providing the perfect storm for the people who create content to start going straight to the audience, via the distribution of the Internet, and cut out all the studio and network middlemen.

This press release just went out from the Guild, concerning Liman's company and the deal it made with the WGA:

Director Doug Liman Forms New Production Company “Jackson Bites” to Create Television Programming for New Media

Announces Immediate Agreement with Writers Guild of America

New York and Los Angeles – Director and producer Doug Liman announced today the formation of a new media company, “Jackson Bites,” which will create television-style programming for alternative distribution. He will serve as co-owner of the venture with the support of a wide range of new media and business investors. Liman also announced that the new company has entered into an agreement with the Writers Guild of America (WGA), effective immediately.

As a result of the agreement, WGA members will be able to write, develop, and create programming for Jackson Bites for distribution on a wide range of new media outlets, including the Internet, set-top boxes, cell phones, and other wireless devices, and via direct deals with satellite networks and cable companies.

"If the last strike is best remembered for the studios attempting to show they could create programming without writers, this could be the strike where the writers show they can do it without the studios,” said Liman. “We are at a moment of opportunity in television where we have gone from three networks to six, and from a handful of channels to a thousand and YouTube. In that environment, what matters is compelling programming – and compelling programming starts with the writer. Jackson Bites will afford writers the opportunity to create content that will be seen and enjoyed by audiences with or without the involvement of the television networks.”


“This agreement reflects precisely what we have held from the start: for writers, the Internet and new media are the future. Doug Liman’s company makes that vision reality, with high-end, TV-quality programming created for alternative distribution,” said Michael Winship, president of the Writers Guild of America, East.

“We are happy to reach an agreement with Doug Liman that is perfectly suited to the needs of a new generation of content providers,” said Patric M. Verrone, president of the Writers Guild of America, West.

The deal between Jackson Bites and WGA, which was negotiated by Liman and his lawyer Alan Grodin with the WGA and is similar to the deals the WGA recently announced with United Artists, Worldwide Pants, the Weinstein Company, MRC, and Spyglass Entertainment, and addresses an important issue to writers – new media.

Liman, whose career was launched with the independent film Swingers, continued on to executive produce the television series The O.C., as well as to direct The Bourne Identity, Mr. & Mrs. Smith, and the upcoming film Jumper, sees this as the moment for new media.

Jackson Bites is financed completely outside the studio system. Liman will not direct or produce any of the content in the new company. Jackson is Liman's eleven-year-old sheep dog.