The WGA vs. ATA (agents)

Lots of you have asked my opinion on the recent struggle between the WGA and talent agencies over “package deals.” It’s about to come to a head and writers might soon have to fire their agents en mass if their agency engages in the practice of package deals. What we’re really talking about here is the big four: CAA, WME, ICM, and UTA.

Package deals are when agencies get a piece of ownership for ostensibly putting the “package” together, lining up their acting, writing, and directing clients. The idea is you have a much better chance of selling something if you have key pieces already in place.

But agencies now package every show, even if it’s just the creator/showrunner. And they make a large profit as a result.

Agencies are also essentially producing their own shows. This leads to conflict-of-interest problems. How can your agent negotiate the best deal for you with the studio if they’re also the studio looking to keep costs down? Back in the 1960’s a company called MCA was doing that. Then-attorney general, Robert Kennedy said they had to choose – studio or agency? They chose studio and morphed into Universal. Through some loopholes agencies are getting around that now.

I think you can see why writers are upset.

But it’s a complicated issue. With all the studio and network consolidation and writers getting fewer development deals, agencies have had to search for alternative ways to make money. Just taking 10% in a shrinking marketplace won’t cut it. They feel they need package deals and creative producing arrangements to survive in this new mega-marketplace. Realistically, I don’t see them giving any of that up without a serious fight.

A further complication: Yes, there are many instances of agents screwing writers. I’ve been the victim of this myself. I’ve fired agents over the years who I felt shafted me. But other agents I’ve had have truly worked on my behalf. They genuinely care about my welfare. It’s one thing to go to war against studios and networks because you KNOW they’re the enemy. You KNOW they’re out to screw you. They take pride in it. But if you have a good agent, he’s working FOR you. You have a real relationship with him. A good agent is your friend, not enemy. So it’s hard to fire your friend. I feel that way about my representation.

Oh, and there’s this additional wrinkle: You can fire your TV writing agent but still be represented by the agency in other areas – say directing or acting, or theatre. So you’re picketing one office but entering another down the hall. Confused yet?

So what’s the upshot? The WGA feels this course will be the most effective. The WGA has been a Godsend to writers. Our fees, pensions, health & welfare, residuals, and various other protections have only come from WGA struggles. I stand by the WGA as I have through numerous work stoppages. And I’m a huge fan of the current WGA president, David Goodman.

My fervent hope is that something can be worked out before April 6 to avoid any upheaval. But this is a tough one. There’s no RFK to step in.

All of this is uncharted territory. Oh well, Hollywood always loves a cliffhanger.

from By Ken Levine

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