It seems only fitting that I use my last column to take a closer look at the future of the entertainment industry. Things in Tinseltown are definitely shaken, not stirred, at this juncture. The film industry is still facing potential strikes from the Screen Actor's Guild (SAG) and the Writer's Guild of America (WGA). Television just experienced a momentous event with the switch of Buffy the Vampire Slayer from the WB to UPN. Finally, the music industry, as well as the film and video game industries to a lesser extent, is being blasted in a report released yesterday by the Federal Trade Commission (FTC). To say that things are tense in the industry would be an understatement.
The WGA entered its eighth week of contract negotiation on Monday. The divide between the WGA and the industry is as wide as ever, as both sides have just denied rumors that a settlement is in progress. The WGA's 42 demands include issues regarding creative rights, credit, and residuals. In essence, the WGA wants to increase the writer's scope during the process of making a film and making sure that the writer receives all the profits that he or she would be entitled to, especially down the road when films transfer to video, DVD, and television.
With the contract expiring on May 2, things look grim, and the fact that Hollywood is turning on itself does not help. The Alliance of Motion Picture & Television Producers (AMPTP) is calling the WGA's demands unrealistic, claiming the residuals being asked for are not the "extra" money that the WGA is making it out to be, but that in fact most studios use this residual money to break even or eke out a profit.
The Director's Guild of America (DGA) has also launched itself into the fray citing the WGA's creative requests as unacceptable. Among them, that directing credits (usually "A film by") be excised and reworded so as not to imply possession of a film to the director.
SAG's requests are much more slanted towards financial matters, with residuals playing a big role in the struggle. SAG's struggle has been two-fold: first negotiating with the industry for their residuals, then allaying public perceptions of greed. It is difficult for the average person to understand why people like Julia Roberts, Brad Pitt, or Gwyneth Paltrow might be striking when they earn on average multiple millions per picture. But the reality of the situation is that only a very small percentage of actors make that much. SAG is huge, and Harrison Ford's recent $25 million payday is the exception, not the rule.
As someone with some understanding of the financial intricacies of running a successful organization, I empathize with the studios' difficult position. Still, I think that WGA's non-financial demands seem only fair. They aren't asking for more input, just as close to parity as can be managed. SAG's situation is very similar. These strikes are not inevitable, but I think that they will happen. Studios have more than enough product stocked up for release in the interim since both writers and actors have been working overtime to stockpile some savings in case of a strike. Besides, there's always non-scripted, non-acted reality television. Get ready for Temptation Survivor Island Boot Camp.
As this is all happening, industry bigwigs keep playing their power games. The latest reached its denouement with the move of Buffy the Vampire Slayer, currently in its fifth season, from Time-Warner's WB network to the equally new netlet, Viacom's UPN. The delicious Buffy is credited with saving the then-struggling WB and initiating its switch to teen-oriented dramas such as Dawson's Creek, Felicity, and Charmed. In fact, after 7th Heaven, Buffy is the WB's highest rated series. This is the first time that a hit series has left its native network. Struggling series such as Sister Sister and Sabrina have made network switches in the past, but no show as successful or critically lauded as Buffy has ever made a similar move.
Admittedly, the UPN switch was a surprise to all involved. It was originally believed that Buffy would leap into a FOX lineup since its owner, Twentieth Century Fox, could keep it in-house. A move of that nature would've been huge for a number of reasons, not the least of which is the implication that Twentieth Century Fox would be willing to pull a series once it was a hit. I think FOX would've found it difficult to sell any series if that original plan had been followed through with. At least with the UPN switch, it has become a question of dollars: UPN offered over $2 million per episode; up from the WB's offer of $1.6 million.
Last but not least came yesterday's FTC report. It is entitled, "Marketing Violent Entertainment to Children: A Six-Month Follow-Up Review of Industry Practices in the Motion Picture, Music Recording & Electronic Game Industries." As the title suggests, this report was a response to a previous FTC report released six months ago. That report stated, "[T]he pervasive and aggressive marketing of violent movies, music, and electronic games to children undermines the credibility of the entertainment media industries' parental advisory ratings and labels and frustrates parents' attempts to make informed decisions about their children's exposure to violent content."
Yesterday's report actually came out in favor of the motion picture and video game industries. Significant improvements in the advertising practices of both industries were discovered in the FTC's research. For example, R-rated feature film trailers are no longer shown at G- and PG-rated film screenings. Also, violent R-rated films and M-rated (Mature) video games are not being advertised during children's programming and in youth publications, for the most part. There were still some rumblings regarding advertising during programs that have a mostly teen audience but, overall, the report reflected favorably on these two industries.
It was the music industry that bore the brunt of the report. The FTC took it to task on its rating system, which is really no more than the black and white parental advisory stickers we've all come to recognize. One thing that the FTC pointed out was that while the movie and video game ratings are almost always visible in their advertising, music advertisements seldom, if at all, feature parental advisory information in ads, both on television and in magazines. Not to mention that albums that feature parental advisory labels are still prominently marketed in youth publications.
This report and its implications could become a headache for the entertainment industry. In fact, Premiere magazine recently put out its 2001 Power List and, coming in at number 100 were Senators Joseph Lieberman and John McCain, both of whom are among the more vocal members of the Senate in regards to violence and sex in the media. Lieberman is planning to introduce a bill that will, in essence, make it illegal for studios to advertise R-rated features in magazines read by youths that are not of age.
Interestingly enough, Premiere's title for these two men was "The Thought Police." The voluntary ratings systems that the entertainment industry employs serve their purpose - these senators need to be very careful not to cross the line from parental advisory to censorship. Telling a private corporation when and where it can advertise is outside of the realm of their power. Washington and Hollywood should be working together, not duking it out. Then again, if the strikes go through as they seem like they might, Washington might not have to worry about Hollywood that much at all in the coming months.
