SAG’s Thaw

"Fire & Ice"  courtesy of Nathan Harper

Variety‘s Dave McNary reported that the Screen Actors Guild’s national board just approved a tentative two year deal on its film-TV contract, triggering a ratification vote by the guild’s members on June 1st.

As McNary writes in today’s Variety:

Should the deal be approved by members, it will extinguish what’s been a nagging uncertainty for the business for the past year. Production on film and TV was thrown off-kilter by the writers work stoppage, then by studios’ and nets’ fears that a SAG strike might emerge. During the period of uncertainty in the fall, control of SAG’s national board shifted to a moderate coalition, while the economic crisis helped create a big slowdown in local feature production. (First-quarter off-lot activity in Hollywood was at an all-time low.)

The terms of the new deal are generally the same as those the networks and studios agreed to with the WGA, DGA and AFTRA. That means that all of the guild’s protracted stang und drum sturm und drang was a waste of time and may have even hurt SAG’s chances to assert jurisdiction over all television programming.

SAG and AFTRA have joint jurisdiction over dramatic television and most television actors are members of both unions. The networks saw an opening and took it by entering into TV agreements with AFTRA instead of SAG. For the first time in 30 years, AFTRA split from SAG and negotiated its primetime contract without SAG. By doing so, the networks scored a twofer by fostering discord between and within each union and averting any threat to TV production during a strike.

Effective negotiating requires unity between and amongst the rep and the represented. This is all the more so when the represented are a large number of people (in this case, 120,000), each with different goals, motives and fears.

Group dynamics assumes that there’s always going to be dissent amongst a large number of people seeking a common goal. The WGA had similar difficulties during their negotiations with the AMPTP. However, a large group still requires a broad coalition of support before it embarks on any negotiation. In this case, SAG’s current board came to power in the middle of these negotiations and only holds a slim majority.

Given that, infighting between guild factions doomed these negotiations from the start; drawing off much needed focus and consensus away from the negotiations and towards addressing dissenters objections to the point of distraction. The AMPTP likely concluded that the best tactic for them was to stay largely mum lest they provide guild factions with any common ground on which to unify.

And now that SAG’s national board has approved the deal terms, it’s still far from over.

In the weeks to follow, SAG president Alan Rosenberg and his MembershipFirst faction have vowed to continue their opposition to the current proposal in an effort to get as many no votes from SAG members as they can. Although the consensus is that passage of the current proposal is all but assured, Rosenberg and company are reportedly setting the stage for next fall’s election of SAG’s leadership. This tactic has already proven to be self-destructive and will accomplish nothing other than to further weaken the union and any chance it may have at unification.

As it is, SAG should have postponed negotiations until it developed consensus within its membership and its leadership. Common ground is the cure here. This isn’t Monday morning quarterbacking; it’s common sense.

Expiration of SAG’s new agreement concurrent with the WGA, AFTRA and the DGA’s agreements was one of the most important concessions the guild was able to obtain from the studios. With all the creative unions’ deals expiring at the same time, they’ll be strength in numbers and an opportunity for a unified front based on a set of common goals. Although many SAG members believe they may have lost this battle, with that kind of formidable alliance, SAG may ultimately be in a position to win the war.

Technical Difficulties

"Down Button" Courtesy of Will Pate

My blog broke during a WordPress upgrade in mid-January. Even so, I’ve been writing posts but couldn’t publish them until now.

Now that the fix is in, I will publish these posts over the next week or so instead of all at once here and here.

Piecemeal publishing makes the content last longer.

Make sure you scroll down to catch up.

Interdependence Day

"118/365/year2 marionette" courtesy of "Riot Jane" aka Bethany

There’s been quite a bit of up-selling of independent pictures in Hollywood.

With the box office success of Slumdog Millionaire, indie films are the new darlings of the movie business after decades of being relegated to the wilderness of limited theatrical distribution and even more limited marketing budgets.

Seeking to capture greater market share, the majors absorbed distributors like New Line Cinema and Miramax years ago.

However, the studios never expected that their independent labels might produce pictures that would threaten to cannibalize their tent-pole productions.

Patrick Goldstein recently wrote in The Big Picture blog about Slumdog’s surprise performance and its likely chances of getting an Academy Award here. [Ed. Note: Goldstein’s post has since been removed but can now be found here].

After all, the irony of all ironies is that after giving “Slumdog” the bum’s rush, Warner Bros. spent millions running a best picture campaign for “The Dark Knight,” the highest-grossing film of 2008, which still ended up being largely ignored by Oscar voters, who failed to give it a best picture, best director or even a best original screenplay nomination.

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The sad truth is that most studios today don’t have the patience, the artistic desire or the skilled manpower to release a film like “Slumdog.” My guess is that Warners, having unloaded all of its specialty divisions, both Picturehouse and WIP, eyed its little gem (made for a paltry $14 million) and said–even if we put in months of painstaking work, it’s at best a double (industry parlance for a modest hit). Like most studios today, Warners is an assembly line, built to swing for the fences, eager to make mega-hits like “The Dark Knight” or “Harry Potter,” which not only make far more money but feed the studio’s valuable ancillary markets.

Warners is not alone. 20th Century Fox has little in the way of artistic ambitions, preferring to hire no-name directors, leaving the Oscar game to its Searchlight subsidiary. The same goes for Disney, which is happy to let Pixar take home a best animated film statuette and let its tiny Miramax subsidiary, which spends a fraction of the money it did when Harvey Weinstein was at the helm, play in the awards sandbox. Even Sony, which used to avidly pursue awards, has largely given up, preferring to pursue more commercial goals.

It’s a great article and I was with Goldstein until he wrote:

Of this year’s best picture nominees, only two were made at major studios: “The Curious Case of Benjamin Button,” co-financed by Paramount and Warners, with Paramount distributing, and “Frost/Nixon,” which is distributed by Universal Pictures. “Slumdog,” along with “Milk” and “The Reader,” were financed outside the studio system or by specialty companies. More importantly, if you look at the recent best picture winners, they are invariably made by fiercely independent filmmakers who rarely take their cues from the studio system.

The Coen brothers, who directed last year’s winner, “No Country for Old Men,” are so leery of Hollywood that producer Scott Rudin had to cajole them into even coming to town for a few glad-handing events. The same goes for Martin Scorsese, a lifelong New Yorker who directed “The Departed,” the winner in 2007. Paul Haggis, who directed “Crash,” the 2006 winner, lives here, but as a director operates just as far away from the studio system as Scorsese or the Coens. Clint Eastwood, who won in 2005 with “Million Dollar Baby,” is the ultimate outsider, making his movies with the same crew in the same quiet fashion, brooking little interference from any studio suit.

While I am pleased to see that American (and global audiences) are demanding more sophisticated fare, I demurred in the comments section of my client, Jonathan Wakeham’s blog on film @ mastersvo.com. I wrote that:

Although it may be true that these pictures were independently financed, such financing was likely based on the producers having US theatrical distribution in place prior to principal photography. US theatrical distribution essentially drives the value of foreign distribution rights up increasing the likelihood of financing a project.

For all their laudable (and at times, edgy) works, Scorsese, Rudin, Eastwood and even Haggis are part of the Hollywood establishment. Their involvement in a project can easily (relatively speaking) drive financing of a project. Saying that these pictures are truly independently financed . . . is like calling a wolf in sheep’s clothing a ewe.

While Slumdog is not a litmus test of what truly independent projects can accomplish given meaningful theatrical distribution and a real marketing budget, it does prove that audiences have a big appetite for original stories in an industry that insists on being increasingly derivative and increasingly risk-adverse.

And that’s a pretty happy ending in itself.

Grass Roots Licensing Of Youtube Fare

My kids turned me on to “Charlie The Unicorn” shortly after it made its debut on youtube several years ago. Like most user generated content, Charlie, a flash animated 2D short, was made on a shoestring and the production values reflect that. Still, the work is smart, funny and quotable in the vein of Caddyshack and The Simpsons.

Charlie has been viewed over 35 million times worldwide and spawned a sequel.

Still, I wasn’t really intrigued until I visited Hot Topic, a teen-oriented store in my local mall, and spotted Charlie merchandise.

Plenty of talented (and not so talented) folks make shorts and distribute them on youtube. Far fewer generate millions of views or eyeballs; and only a handful of those successfully make the jump to ancillary exploitation.

Whether Charlie’s creator is making meaningful revenues isn’t really the point (nor is the aesthetic value of such a work).

Charlie’s transition from youtube short to retail merchandise represents nothing less than a sea change in the ability of a single content creator to leverage the internet and its potential access to millions to build a following and potentially profit from ancillary and derivative exploitation of content without the need or prohibitive expense of traditional distribution channels.

It means that self-distribution is now a meaningful and sustainable distribution alternative and will become even more so as internet based distribution (e.g., faster downloads) matures.

It means that traditional distributors better figure out how to stay relevant (hint: content marketing not content distribution) or get out of the way.

Just ask the people who (used to) work in the music business.