SAG Strike May Not Deal Networks Crippling Blow - From the LA Times

LA TIMES:

If an actors strike really does come to pass, don't worry. You won't have to do without "The Daily Show with Jon Stewart" or "Saturday Night Live." Even certain scripted series, such as CW's "90210" and CBS' "Gary Unmarried," would be safe. And thank the gods in heaven that Fox's sitcom "Til Death" wouldn't suffer from a walkout.

Dark clouds of labor trouble are again circling Hollywood. But the environment for the TV industry looks considerably different than it did when the writers strike began a little more than a year ago, scuttling much of the networks' 2007-08 season. That's because a larger number of shows this time around simply wouldn't be affected.

Last week, the Screen Actors Guild, whose members have worked without a contract for months, announced it would push for a unionwide vote to authorize a strike. If that vote passes -- which many observers consider unlikely, given the current turmoil in the larger economy, but certainly not impossible -- an actors walkout could happen as early as mid-January. (Sources at the networks and the unions were happy to talk off the record, but no one would agree to be quoted by name discussing a sensitive labor situation.)

When the writers began striking last November, it didn't take long for the pain to spread, because few shows didn't depend on Writers Guild talent. Performers, moreover, felt squeamish about crossing picket lines, partly because they knew the other trade unions would soon be negotiating with the studios and networks over such contentious issues as residual payments for digital content. So the strike not only walloped dramas such as "Lost" and "24," it put the kibosh on "Daily Show," "The Late Show with David Letterman," "SNL" -- the list went on and on.

Since then, however, not only writers but directors, broadcast performers and "below-the-line" production workers have forged new deals with the studios. That's stranded the actors on a bit of an island, at least in terms of negotiating leverage.

Meanwhile, producers have pushed to get more series covered under a deal with the American Federation of Television and Radio Artists, which has traditionally represented broadcasters and generally has a more harmonious relationship with the studios than SAG has had. Such series include ABC's midseason sitcom "Better Off Ted," with Jay Harrington and Portia de Rossi, and Fox's space spoof "Boldly Going Nowhere," currently eyed for the fall. Current shows such as "Gary Unmarried," "Rules of Engagement," "90210" and, yes, "Til Death" are also covered by AFTRA. And of course, AFTRA already covers most unscripted series, such as "Survivor," "American Idol" and "Deal or No Deal," which were left unscathed by the writers strike and wouldn't be impacted this time around either.

If it seems like AFTRA's clout in prime time is growing, well, it is. And that's because of the way TV shows have traditionally been apportioned between the two performers unions: SAG covers filmed projects, AFTRA those on video. The unions have dual jurisdiction for material recorded digitally -- and that's where AFTRA is seeing a big upswing. In fact, the trend toward more AFTRA shows represents a return to the state of the industry prior to the 1980s, when expensive filmed shows such as "Hill Street Blues" began operating under SAG deals.

SAG still covers the big filmed shows such as "CSI: Crime Scene Investigation." But even there, the networks might not suffer as much as they did during the writers strike. Many shows began production earlier than usual this past summer, so they have finished shooting a large number of episodes. One network source said some series have already completed photography on 15 to 17 episodes and would probably be close to having finished a full season order by the time any strike started.

None of this means the TV business would escape injury if an actors strike really does come to pass. On the contrary, production schedules for many filmed shows would be thrown into chaos once again and the industry would suffer further ill-timed disruptions at a moment of heightened economic vulnerability.

But the writers strike meant crumbling ratings and truncated seasons for many shows. Fox's "24" alone ended up with a delay that will amount to an 18-month interval by the time it returns in January. Compared with that kind of upheaval, viewers this time might hardly notice any difference.

--Scott Collins

The Latest on SAG from the LA Times

Timing of SAG strike authorization vote may aid passage

The balloting process is set to occur this month when much of Hollywood is shut down, possibly resulting in a low turnout among opponents.

By Richard Verrier
December 8, 2008

There is a saying in politics that whoever controls the turnout wins the election. That's as true in Hollywood labor politics as it is in presidential elections.

A key vote later this month by members of the Screen Actors Guild could push the entertainment industry toward another bitter strike, almost a year after screenwriters ended a 100-day walkout. The union's negotiators say they need the strike authorization vote to give them leverage in contract talks with the studios that have stalled for months.

The question is, why would SAG hold such an important vote over the December holidays, when much of Hollywood shuts down? Some union critics think the timing is suspicious, and claim that SAG leaders would like nothing more than to see a low turnout, particularly among working actors who are the most likely to oppose a walkout.

But people close to the union's negotiating committee say the vote at month's end is necessary to give the guild enough time to conduct its "educational campaign" to build support for its cause at a time when the union remains sharply divided over the best course of action.

That's in marked contrast to the Writers Guild of America, which was firmly united when members overwhelmingly approved a strike authorization last year.

SAG, on the other hand, has been beset by feuds between moderates and hard-liners over negotiating strategy, contract demands and strained relations with its sister actors union, the American Federation of Television and Radio Artists (AFTRA quickly reached a new contract with the studios and is poised to expand its jurisdiction into prime-time TV shows typically covered under SAG contracts). The 44,000 members who belong to both unions could play a key role in the strike referendum, given that most of them already endorsed the AFTRA contract, which is virtually identical to the one the studios are offering SAG.

Although some prominent actors, including Rob Morrow and former SAG President Ed Asner, have declared their support for the union's leadership, other household names have openly challenged holding a strike authorization during the worst recession in decades.

"We do not believe in all good conscience now is the time to be putting people out of work," actress Rhea Perlman and her husband, actor Danny DeVito, wrote in a recent letter to SAG directors that was widely circulated.

The sparring has extended into SAG's 71-member board as well. New York board member and former SAG President Richard Masur has blasted SAG leaders for their handling of the failed federal mediation talks, which precipitated the strike authorization vote. SAG President Alan Rosenberg returned fire at critics, saying negotiators did everything they could to keep talks alive in the face of studio intransigence.

Studio executives do not appear fretful about the prospect of a strike -- as they were last year when the writers were ramping up to walk out -- because they're betting that SAG members will not vote for strike authorization given the recession, with its attendant widespread layoffs, that is now washing over media companies.

Still, the Alliance of Motion Picture and Television Producers, which bargains on behalf of the studios, isn't taking anything for granted. The group has launched its own campaign targeting SAG members. The alliance took the unusual step last week of posting its final contract offer on its website and issued missives that attempt to portray SAG leaders as out of touch with economic reality.

Although the economy will almost certainly be a factor in the vote, it's unclear how much of an effect it will have because of the divergent makeup of SAG's membership.

Working actors -- those who rely on work in film and TV for their primary source of income -- account for about 10% of the guild's membership.

Instead, 90% of SAG's members earn less than $28,000 a year from acting work and, putting aside the multiplier effect for a moment, have less at stake if TV and film production shuts down in Hollywood.

Moreover, Membership First, the faction that dominates the Screen Actors Guild, has proved in the past that it can be effective in mobilizing support among extras and actors who work only occasionally.

"It's a unique feature of this particular union that there is a very large chunk of underemployed and unemployed, and I think that could work in the union's favor," said David Smith, a labor economist at Pepperdine University. "Still, I think getting the strike authorization will be a tall order given the economic crisis. That will be on many actors' minds."

Short of SAG and the studios reaching an 11th-hour bargain, strike authorization ballots will be mailed out to about 100,000 eligible SAG members (those who are paid-up on dues) at the end of the month. Balloting takes three weeks. A thumbs-up on the measure requires approval from three-fourths of members who return ballots.

Still, even if the members authorize a strike, the final decision whether or not to actually walk out is left to the guild's 71-member board.

Moderates who hold a slim majority on the board aren't expected to support a strike unless there is an overwhelming mandate from members. That makes the size of the "yes" vote crucial.

But, paradoxically, a small turnout could actually work to the advantage of SAG's leaders if the respondents skew toward nonworking actors who are more likely to favor a walkout. SAG referendums typically draw a turnout of 25% to 30%, and a recent survey conducted by the union drew 10%. Of them, nearly 90% supported seeking a better deal than what the studios proposed in their "final offer."

Given the high stakes involved, and heavy campaigning on both sides, turnout should be considerably higher this time around.

But holding the referendum over the year-end holidays could mean a smaller turnout by working actors, who often get their mail sent to business managers, whose offices will be closed.

But sources close to the guild's negotiating committee say the delay is necessary to give the guild time to make its case to members and build support through a series of town hall meetings, mailings, e-mails from SAG leaders and videos on the union's website. SAG also has invited publicists and agents to attend a meeting at the union's headquarters Wednesday.

Said one board member: "We only have one stab at getting this right and we didn't want to rush anything."

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Another Great Article About the New Mexico Film Industry in the New Mexico Business Weekly

Film tours next?

Film industry spawns more than movies made in NM

New Mexico Business Weekly - by Megan Kamerick NMBW Staff

When Marla Steinbrecker’s sister came to visit her in Albuquerque, she had one request.

“‘I want to see the building where Mary was kidnapped!’” Steinbrecker recalls her saying.

Mary was Mary Shannon, the character played by Mary McCormack in the show “In Plain Sight,” which is set in Albuquerque. Steinbrecker dutifully showed her sister the Atomic Cantina.

“‘This is so cool!’” Steinbrecker recalls her saying.

It’s just the kind of excitement tourism officials want to leverage from New Mexico’s booming film and TV industry, which has showcased many areas of the state.

Christian Bale and Peter Fonda led prisoner Russell Crow through the red sandstone rocks of Abiquiu in “3:10 to Yuma.” Josh Brolin dodged a psychopath with a bad hair cut around historic downtown Las Vegas in “No Country for Old Men.” John Travolta, Martin Lawrence, Tim Allen and William H. Macy hung out in Madrid with their motorcycles in “Wild Hogs.”

“There is no better advertisement for the state than watching the beautiful scenery of New Mexico,” said Jennifer Hoffman, deputy secretary for the state Department of Tourism.

Hoffman joined the department earlier this year and is working on bringing tourism and film closer together. The department is currently conducting surveys at the state’s visitor centers to gauge people’s knowledge of New Mexico based on the movies they have seen.

Eventual plans would include kiosks in all the visitor centers, with streaming video from movies shot in New Mexico and an accompanying film map to help tourists find landmarks featured in films. Ideally, this will correspond with road signs marking certain sites, Hoffman said.

The State Film Office has a map it updates every few months that lists sites where films have been shot, but Hoffman envisions something that is more tourist-friendly.

Tourism is already a major force in the state as the largest private sector employer, with more than 80,000 employees. The film industry has risen quickly as a sector here, with direct spending of $751.7 million over the past six years. Some 115 films and television shows have been shot here since 2003.

In many states, the film office is housed within the tourism office or convention and visitors bureau, but in New Mexico, the film industry is under the umbrella of economic development. Gov. Bill Richardson, who has made building the film industry one of his policy priorities, called for connecting it more closely to tourism at the Governor’s Conference on Tourism in Roswell last April.

“We wanted the Tourism Department to take advantage of the inherent marketing that comes with New Mexico being on the screen,” said Eric Witt, deputy chief of staff for Richardson. “There are a lot of things we want to do to maximize the cross-promotional opportunities we have.”

Cities such as Philadelphia and Los Angeles have tours around films shot in those locations, Witt said. And countries such as New Zealand have embraced the strategy.

New Zealand saw a huge boost in tourism as a result of the “Lord of the Rings” films. The country’s national tourism agency now touts many tours of specific locations that doubled for Middle Earth such as the Wellington and Wairapra regions that became the Shire, Helms Deep and Lothlorien. And Australia’s national tourism board has launched a $26 million international advertising campaign based on the new Baz Luhrmann film “Australia,” a sweeping epic that highlights that country’s spectacular wilderness areas.

The New Mexico Tourism Department has begun focusing more on show business with its entry into the Tournament of Roses Parade. The float will feature Wile E. Coyote and the Road Runner. And New Mexico Magazine, which is published by the Tourism Department, based its entire November issue around “Tamalewood,” the nickname for New Mexico’s film industry.

“I didn’t have a lot to do with that, but it’s great,” Hoffman said.

mkamerick@bizjournals.com | (505) 348-8323

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Great Article from the New Mexico Business Weekly

New Mexico Business Weekly - by Megan Kamerick NMBW Staff

Film and television productions such as “In Plain Sight” are a common sight now in downtown Albuquerque. A new association aims to give the industry a stronger voice in the state legislative arena on issues such as incentives.

During the 2008 legislative session, the state’s film incentives got a brief close-up.

The Legislative Finance Committee raised concerns about how quickly the use of the tax rebates had grown. State Sen. John Arthur Smith, D-Deming, proposed capping the rebates at $30 million annually.

The legislation was never fully introduced, Smith said, because the initial support evaporated.
“At the LFC hearings, I was trying to put a cap on [the incentives],” he said. “The next thing I knew, they had me crucifying Christ.”

But even the mention of revisiting the incentives caught the attention of many people working in film and media here.

“That was something the majority of us in this industry had no clue was happening,” said Lynette O’Connor, owner of The O’agency, which represents actors and models.

While it’s not clear if any similar legislation will come up in the 2009 session, there have been rumblings, including a study critical of the state’s rebates versus the actual financial benefit film productions have brought here.

So O’Connor and others formed the Film Industry Promotion Association, or FIPA, and hired The Rutherford Group LLC to lobby state officials.

“We just felt we need a voice, we need someone walking the hallways [of the Roundhouse] to tell us what’s going on, to organize us so we could speak with one voice,” O’Connor said.

The group has about 50 members so far, and many more volunteers. It’s trying to raise $56,000 to pay for its lobbying efforts, she said. FIPA recently held a meeting at the new prop house in Albuquerque, Film Maker Production Services, that drew about 65 attendees, among them actors, various union representatives, real estate managers, small business owners and tourism and hospitality industry people.

Rutherford Group principal Tom Rutherford has begun doing outreach to industries that benefit from the film business, such as hotels, to get broad-based support for the new coalition. He is also floating the idea of hosting legislators at Film Maker Production Services because it showcases how incentives are helping to build a permanent industry here, he said.

“This is an example of a company that used to exist only in California, so it’s making it easier for the industry to come here,” Rutherford said. “I think the bottom-line big challenge is to be able to demonstrate how deep the industry goes in the state, how many times the money turns over.”

The state is facing a $278 million revenue shortfall, according to the LFC’s October estimates, although December estimates could be greater given the decline in oil prices. The amount of the film tax rebates has grown to about $98 million since the incentives were introduced. However, there are no plans to make recommendations regarding film incentive legislation, said David Abbey, LFC director.

That said, the LFC did contract with New Mexico State University’s Arrowhead Center to produce an economic impact study and the results were not encouraging. It found that New Mexico gets about 14.4 cents in tax revenue for every dollar it spends on a tax rebate for film productions. Smith said the rebates have grown much more quickly than state officials anticipated.

“What I’m understanding now is they’re getting tax credits on whiskey and toilet paper,” he said.

Productions can get a 25 percent tax rebate on qualified local expenditures, but the money has to be spent for New Mexico goods and services. There are also wage subsidies available for productions for certain kinds of crew training.

“Our program design is very specific about what qualifies for a rebate,” said Eric Witt, Gov. Bill Richardson’s deputy chief of staff. “It’s specifically tailored to funnel all money back into the state.”

Critics of the Arrowhead study, including Witt, say the methodology was not comprehensive in capturing all the film industry’s economic activity. Its direct spending since 2003 totals $733 million.

“That’s a 7 to 1 return on investment,” he said.

The state uses a multiplier of three to calculate a statewide economic impact of $2.2 billion since 2003.

Richardson’s office hired Ernst & Young for about $50,000 to do what Witt said will be an independent, comprehensive review of the industry’s economic impact on New Mexico. It’s due to be finished just before the legislative session, which starts Jan. 20.

Ernst & Young surveyed people who make at least 51 percent of their salary in film and media, said Lisa Strout, director of the New Mexico Film Office. It also looked at businesses that are doing a great deal of work for the industry, such as lumber yards, concierge services, hotels and rental car companies.

Smith said he does not have plans to reintroduce legislation to cap the incentives, but added he would not be surprised if legislators revive the effort since the state needs revenue.

mkamerick@bizjournals.com | (505) 348-8323