Studios call for study of writer residuals system

[Omaha Steve]

http://www.latimes.com/entertainment/news/business/la-fi-writers12jul12,1,1101862.story?coll=la-headlines-business-enter

Studios call for study of writer residuals system
Executives say formulas are outmoded. The union rejects the proposal as a way to put off coming up with a fair way to share money from new technologies.
By Richard Verrier, Times Staff Writer
July 12, 2007

Should Hollywood call for a rewrite of the way it pays scribes?

On the eve of what are expected to be contentious contract talks, senior studio and network executives on Wednesday called for a three-year study that could retool the decades-old residuals system under which Hollywood's writers are paid.

The executives contended that a joint study with writer representatives, and eventually all talent guilds, was needed because of rapid changes in the entertainment industry — including the rise of digital technology and online entertainment — that continue to uproot the old economic system.

"This is the time to do it," said Warner Bros. Chief Executive Barry Meyer, one of three executives who spoke at an industry briefing at the Encino headquarters of the Alliance of Motion Picture and Television Producers. "We feel that operating under terms, conditions and business models that were formulated half a century ago is just an outmoded way to look at things."

But the proposal was immediately rebuffed by the union representing Hollywood's writers as an attempt to put off coming up with a fair formula to share money that will eventually flow in from digital distribution.

"The industry conglomerates declare windfall profits to Wall Street while pleading poverty to the talent community," said John F. Bowman, chairman of the Writers Guild of America's negotiating committee. "We don't need a study; we need a fair share for writers of the revenue our work generates."


FULL story at link.