Ken Ziffren on Writers Strike: Tuesday’s Assembly “Did Not Transfer the Ball Ahead”

Ken Ziffren, a veteran leisure lawyer who’s served as Los Angeles’ movie czar since 2014, is casting skepticism as as to if negotiations between the Writers Guild of America and the Alliance of Movement Image and Tv Producers have progressed. He mentioned that Tuesday’s assembly between the 2 sides “didn’t transfer the ball ahead” in an indication that they continue to be far aside.

“It’s questionable whether or not the dearth of programming for us to view will incent both of the studios or SAG-AFTRA or the WGA to take a seat down once more and preserve going,” Ziffren mentioned on Wednesday at an occasion for media and leisure attorneys hosted by the Beverly Hills Bar Affiliation.

The AMPTP and WGA met on Tuesday to debate the counter-offer offered by the studios on Aug. 11, with WGA East management touring to Los Angeles to overview the studio proposals. The transfer urged that talks have gotten extra severe for the reason that Friday sitdown, which served as the primary formal return to the negotiating desk for the reason that strike was referred to as on Might 2. After the assembly, studio sources advised The Hollywood Reporter that their takeaway was {that a} deal wasn’t imminent and that the 2 sides are nonetheless working by points. The WGA didn’t ship out a post-meeting communication to members.

Ziffren pointed to the settlement the Administrators Guild of America secured as a “whole lot” and mentioned it ought to function a template to resolve contentious negotiating factors referring to synthetic intelligence and performance-based residuals.

Lower than two months into the writers strike, the Administrators Guild shortly got here to phrases with the AMPTP in an settlement that secured a brand new residuals method and an obligation that firms seek the advice of members when utilizing generative AI “in reference to artistic parts.” Either side highlighted a brand new method for international subscription video on-demand (SVOD) residuals that revolves across the variety of worldwide subscribers on a given platform. Below the deal, the most important streaming companies are obligated to pay $89,415 in residuals for one-hour sequence for the primary three years of use (representing a 76 p.c enhance in international residuals and a 21 p.c enhance basically).

“That’s the place the longer term is in getting additional residuals,” mentioned Ziffren, who’s lengthy labored with the DGA. “The Administrators Guild negotiated a one hour sequence residual for high-priced video sequence that’s double digits higher than on a community, both broadcast or cable. That truth has not reached the viewers that it ought to have.”

Ziffren added that he was doubtful that the studios would “conform to an add-on of a number of million or a whole bunch of thousands and thousands of {dollars} on this world by including some sort of efficiency base which will or could not relate to their respective revenues.” The entire seven main studios and streamers, except Netflix, are shedding cash below the present framework, he mentioned.

Residuals have emerged as a key problem within the strike. For streaming titles, the WGA has requested for viewership-based residuals, on prime of current fastened residuals, to “reward applications with better viewership,” in accordance with a doc issued in April detailing the guild’s supply. The AMPTP refused to make a counter-offer on the time as that may require information transparency, which streamers have adamantly opposed.

Greater than 100 days into the strike, there’s no clear pathway to resolving the work stoppage. Ziffren criticized how the 2 sides are approaching negotiations.

“It appears to me that if we are able to begin having either side ship a bit of paper on AI — determine three, 4 pages — of their positions on all the problems, commerce these items of paper, sit down in a room and speak it by quite than posture, that we’ll get nearer to full employment if we do this,” he mentioned.

The WGA has accused the AMPTP of leaking details about conferences to the press regardless of “blackouts” forbidding both facet from doing so.

On the difficulty of revenue participation, particularly new bonus methodology on TV expertise offers that enables studios to get pleasure from unrestricted management over the distribution of their applications, Ziffren mentioned his purchasers choose this framework over the outdated mannequin primarily based on modified adjusted gross receipts (MAGR), or the income the studios will get from the sequence minus distribution charges, bills and manufacturing prices. Whereas revenue participation primarily based on MAGR affords essentially the most vital upside, he defined the brand new mannequin possible results in larger common payouts.

“Given the discount of episodes per season — which forgive me just isn’t going to alter — it could be higher to go for doubles than house runs,” he mentioned.

In 2020, Disney unveiled its so-called sequence bonus exhibit on offers for subscription choices, which rewards revenue members with bonus funds for longevity, program rankings, awards like Emmys or Golden Globes and library efficiency, amongst different components. It’s turn into the norm provided by Disney and Fox.

Amid the strike, CEO pay has additionally come below the highlight. Barry Diller, chairman and senior govt of IAC and Expedia Group and former Hollywood studio chief, mentioned in July that prime executives and the highest-paid stars ought to take a 25 p.c pay lower to slim the hole between their salaries and people of individuals on the decrease finish of the size. Requested concerning the suggestion, Ziffren mentioned, “Barry appears to me like a man who’s out of the enterprise attempting to get again in.” He added, “Every firm will resolve independently of the others what compensation will probably be payable to their respective executives.”

Katie Kilkenny contributed to this report.