The breakthrough in key issues, royalty rate for TV shows and movies streamed online means a tentative contract should be announced within a week. Attention then turns toward the actors.

By Alex Ben Block

HOLLYWOOD, CA (Hollywood Today) – 2/2/2008 – I told you ten days ago that the writer’s strike could be over in two weeks, but it may actually take an extra week work out key contract language. The good news is that there has been a breakthrough in negotiations and there is reason for optimism that the strike will be over shortly, the Academy Awards will go on and there will be advertising upfronts and a Fall 2008 television season.

The breakthrough in the talks occurred on Friday when Peter Chernin, CEO of News Corp. returned to informal meetings along with Robert Iger, CEO of Walt Disney, representing the interest of all the studios and broadcast networks.

One of the final points to be resolved was over the royalty when a writer’s work is streamed over the Internet, usually with paid advertising. Management wanted a 17-day window before any residual kicked in, which would essentially mean it would only be important if the show or movie was enough of a hit to sustain its place in the market place for an exceptionally long time. The lion’s share of fans, catch it within days.

Writers wanted 1.2 percent of whatever the distributor took in; and the companies wanted to pay at a lower rate, equal to what they pay in home video. According to sources, the writers and management have found a “creative solution” to the issue.

The New York Times said “An agreement may be presented to the governing boards of the striking (writers) by the end of next week.”

Variety noted that there may be no need for the formal negotiating sessions at all: “Insiders said there was enough progress being made to raise the prospect of WGA leaders bringing a contract proposal directly to the boards of the WGA West and WGA East, possibly bypassing the resumption of formal bargaining…Insiders indicated that lawyers for both sides were exchanging drafts of proposed contract language this weekend.”

The tipping point to make it real comes from a blog on the web site United Hollywood, which is run by a group of WGA strike captains who are close to the leadership of the guild. They reported: “UH has confirmed from off-the-record sources that progress is indeed being made in the informal talks, and that creative solutions to the biggest differences between the AMPTP and the WGA have gotten the tentative and cautious approval of both sides….This does not mean there is a deal in principle yet. It means we may, finally, be very close to one — as close as days away.”

There is still a lot of legal language to be worked out, and it could lead to delays or even blow up the deal; but odds are it will get worked out and the writers will be back at work. If all goes well the leadership of the guild will brief the negotiating team and board on Monday, and by Friday there will be an official announcement. That will then be followed by a vote of the membership and final details, which could take another week. That means it would all be wrapped up in time to celebrate at the Oscars.

Although the Directors have now worked out a deal, and the Writers appear on the verge, the actors continue to make noises about wanting more in their contract than what they have seen so far. This has brought a sharp response from management, but that may all be pre-negotiatons strategy. If the DGA and WGA go along on the new media issue, it will be difficult for the actors, even with activist leadership, to call for a strike over a small increase above what is being offered.

The settlement is shaping up to be better than most expected before the strike began and its successful conclusion is a credit to the fortitude and steadfastness of the writers. The guild planned well in advance and have kept everyone in line, at least publicly. There has been a remarkable level of unity among the writers, even as they carried picket signs in the rain.

This is very unlike the 1988 strike, which ended with a degree of acrimony, at a time a number of splinter groups within the guild had publicly called for an end to the strike on management’s terms. This deal may not be all the writers have dreamed of, but it appears to be progress in structuring the entertainment industry of the future.

And best of all, within a month, everyone in show business who have been impacted can get back to work.