Continue Reading
This content is reserved for our Insiders of Tier 1 or above.
Register or subscribe to continue reading this article and access the full Media C-Suite analysis.
This content is reserved for our Insiders of Tier 1 or above.
Register or subscribe to continue reading this article and access the full Media C-Suite analysis.
You must be logged in to post a comment.
Last week we learned that the CEOs of the major Studios showed up in person to AMPTP’s negotiations with the WGA. What was meant to be private, AMPTP’s offer to the WGA members, was immediately released by the AMPTP. Trying to create a wedge in the WGA membership, who are clearly suffering financially.
Last week’s tactics by the AMPTP indicate to me more of an amateurish approach to negotiations than that of highly experienced and very well advised CEOs of multi-billion dollar companies.
Since they ARE CEOs of multi-billion dollar companies, and very well advised by some of the most expensive corporate communications and strategy consultants available, the only conclusion is that they, the major Studio bosses have an agenda to use the strikes for some strategic purpose beyond terms with WGA and SAG-AFTRA union workers.
I find this sort of analysis only on the Media C-Suite. Wonder why.
I love the comparison to Marie Antoinette and the term ‘ Let them eat cake’. Indeed squeezing too hard, might lead to a revolution! And that might not be great for the studios!
most producers aren’t represented by the AMPTP,. Netflix and Amazon have tried to eliminate the profit shares traditionally earned not only by actors and writers, but by producers as well. With no back end, producing becomes a service business with income limited to fees, which of course makes production much less interesting for investors, who are looking for the annuity-like earnings that IP library ownership can bring. Netflix is also unique in not having a content library containing any rights created before it began its commissioning bonanza a few years ago (Amazon was similar but has bought MGM). Iger/ Disney is the most aggressive of the studios in the current standoff – there is word on the street that most other studios would quite like to settle but Iger is standing fast. If Disney were to join the others, that could leave Netflix on its own, which is also something that must be very appealing to them all. That said, you make an excellent comment about international content – particularly the younger generation don’t mind subtitles (they even switch these in for English-language shows and turn the sound off). But international writers and actors want a chance to earn profits from their work too, as do international producers, some of whom are actually owned by Hollywood studios (All3Media is owned by Warner Discovery…)
Thank you for your insight, Gavin! We are watching closely.
Gavin. I agree that the AMPTP does not represent most producers. In a global industry, producers in the UK are just as effected by the “American” dispute seeming exacerbated by the CEOs of the so-called Studios.
There is corporate strategy being played out by these CEOs with the WGA and SAG-AFTRA members clearly being used as pawns. The Studios are facing serious disruption, since anyone can now build a streaming platform to compete directly with them. Their advantages are waning, and they know it.
I just don’t see any indication that they know what to do about it other than exploit today’s power imbalance. Love that this article projects a consequence to that.