Hollywood Studios Strike Tentative Deal with Producers

MSNBC reports that Hollywood directors reached a tentative contract deal Thursday with studios, a development that could turn up the pressure on striking writers to settle their 2-month-old walkout that has idled production on dozens of TV shows.

“Two words describe this agreement — groundbreaking and substantial,” said Gil Cates, chairman of the Directors Guild of America’s negotiations committee. “There are no rollbacks of any kind.”

Among other things, the three-year agreement establishes key provisions involving compensation for programs offered on the Internet.

That issue has also been a key sticking point between striking writers and the studios, which broke off talks on Dec. 7.

In announcing the deal with directors, the Alliance of Motion Picture and Television Producers, which represents studios, expressed hope that it would help end what it called an extremely difficult period for the industry.

It also called on the writers guild to engage in informal discussions to determine if there was a reasonable basis for returning to the bargaining table.

The Writers Guild of America said it would evaluate the terms of the directors’ deal. It also reiterated that it has been calling on the studios to resume negotiations.

“We hope that the DGA’s tentative agreement will be a step forward in our effort to negotiate an agreement that is in the best interests of all writers,” the writers guild said in a statement.

Writers previously said directors do not represent their interests.

The deal with directors gives their union jurisdiction over programs produced for distribution on the Internet and sets a new residuals formula for some paid Internet downloads that essentially doubles the rate currently paid by employers, the guild said.

In addition, it sets residual rates for ad-supported streaming and use of clips on the Internet.

“Our industry’s creative talent will now participate financially in every emerging area of new media,” the studio alliance said in a statement.

The deal was welcomed by others in Hollywood.

“I’m very pleased with the new agreement and I hope it helps speed up the negotiations” with the writers guild, George Clooney said.

Clooney has often commented on the need to resolve the strike to put thousands of people back to work in Hollywood.

The directors guild was well-prepared when it started negotiations Jan. 12.

It had spent $2 million researching the potential value of new media over the next decade and held a series of meetings with key studio heads to establish a basis for the formal talks.

Cates, who’s been involved in union contract negotiations for three decades, served as lead negotiator for directors.

He is also producing this year’s Academy Awards program, which is imperiled by the writers standoff.

Source: MSNBC