This WGA strike sucks, to be sure. If it goes on for more than three months (which is looking increasingly likely), pilot season won't happen, no new shows will be created, no new seasons will come back, and we'll be stuck with the dregs of reality TV for a full year. Yep, that means no last season of Battlestar Galactica, no new season of Lost, and no new episodes of The Office. It's no small thing, and not just because you'll be inconvenienced by marathons of Overweight Celebrity Chili Cook-Off Island or whatever the networks will throw up when they run out of new programming.
TV is not disappearing anytime soon, but clearly, it's going to be replaced by either the internet or some TV/internet hybrid. Like the music industry, the TV industry realizes that their tried-and-true business model is about to be useless, and it's lashing out in panic. Unlike the music industry, who stupidly attacked its fans, the TV industry is attacking its own creative source: writers. But the WGA wouldn't be striking if this wasn't important. We talked to both sides to get at the root of the trouble.
Eric Appel, who's written for Crank Yankers and The Andy Milonakis Show and consulted for MTVs Human Giant, told me:
"New media is where television is going. In a few years cable is just gonna be the internet. And unlike TiVo where you can skip the advertisements, in [new, network-run] streaming players you're forced to sit through the ads. The networks are making money on that, and the studios don't want to give writers any of it."
Imagine if the recording industry decided that the internet was merely a way to promote CDs and that no songs sold online counted when paying musicians. Their argument would be that people were just checking out those songs and might go buy the CD later, at which point the artist would get paid. This is essentially the argument the Alliance of Motion Picture and Television Producers (AMPTP) is making.
Here's what a spokesperson told me:
"New media has proven to be an effective and cost-effective promotional and marketing tool for both films and television but there is not enough marketplace data to judge its true potential, ultimate impact on traditional media or viability as a business."
Basically, they claim they don't make any money off the internet so there's nothing to share with the writers, and since "each new month brings new ways to produce, distribute and consume media and entertainment" they don't want to agree to give writers any new media residuals.
As it stands, writers get a small percentage of revenue if a show is successful and reruns often, which is why Jerry Seinfeld drives a gold-plated flying car between his mansions in the Hamptons and Dubai. At the moment, they aren't paid any residuals for new media distribution, despite the fact that online content delivery is the future.
The problem with this logic is that if new media really didn't bring in any money, there wouldn't be a problem. The writers are asking for a percentage of profits from new media - a percentage of nothing is nothing, after all.
So what this battle basically boils down to is the producers trying to move away from a residuals system, one in which writers are paid once for their work and get nothing for creating huge hits. It'll make them a whole lot more money and writers a whole lot less. And it's not just the livelihood of writers at stake; this same issue is going to come up with actors and directors as well in the near future. It's a battle for how business will be done in TV's new age, and one that will affect the entertainment that all of us consume for the foreseeable future.