Striking writers in talks to launch Web start-ups

Dozens of striking film and TV writers are negotiating with venture capitalists to set up new companies that would bypass the Hollywood studio system and reach consumers directly with video entertainment on the Web.

At least seven groups, all comprising members of the striking Writers Guild of America, are planning to form Internet-based businesses that, if successful, could create an alternative economic model to the one at the heart of the walkout, which is in its seventh week.

Three of the groups are working on ventures that would function much like United Artists, the production company created 80 years ago by Charlie Chaplin and other top stars who wanted to break free from the studios.

"It's in development and rapidly incubating," said Aaron Mendelsohn, a guild board member and co-creator of the "Air Bud" movies, who is involved in a group he says comprises top film and TV writers. "We're creating an alternative place for distribution, with more control over our content."  Read more

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--Joseph Menn

Comments

[Prof. Michael Scott]

All I can say is "It's about time." As songwriters and singers are learning quickly, they don't need the record companies to sell their music. They can go directly to the fans online. Record companies are in the business of making and distributing shiny discs, nothing more. And the enormous increase in digital downloads makes it clear that fewer and fewer listeners care about shiny discs. It's about the music.

Producers are not willing to give the writers a decent cut of online revenues because they realize tha the Internet is where the industry will be in just a few years. Writers don't need a traditional TV channel to have successful programming. And the writers don't need traditional TV producers. Venture capitalists from the computer/Internet industry have plenty of money. Internet companies have significantly greater value than TV and movie producers do. Indeed, the value of Google alone is more than all of the motion picture production companies put together. Coincidence?

The WGA needs to free itself of its traditional mentality under which the only market for its services are the old-line production companies, and look to the future. TV is becoming less relevant every year. Movie theaters are going the same way. It is time to move in a big way to the Internet.

Unfortunately, there is a chicken-and-egg problem. While technology for playing video downloads on TV sets already exists (e.g., Apple TV), most people won't spend the money on such equipment until there is content worth watching. And there will not be a lot of money paid for content until there are a lot of viewers. But as sites like YouTube and iTunes, etc. have seen, things move fast on the Internet. Many young people get most of their content online even now, and if there was good, original content available on advertiser-supported or even subscription websites, they would flock to those sites.

[Maccamera]

Now that some of the hard-liners are going out on their own with venture capitalists to do new internet startups, I'm SURE that they will be more than happy to share the proceeds and download income with the other employees of these new productions. As a camera operator that has lost thousands of dollars due to the current WGA cause, I rest easy at night now that I know that a new business model for payment of internet content is being started by WGA members. I'm sure they would never dream of: A)hiring non-union crews on these upstart productions or B)not distributing money made via download to the creative artists whose vision and expertise made it a visual medium and not radio. Indeed, i know the over 40 thousand working members of IATSE can now look forward to receiving residuals from these new companies that are blazing the trails of such a new technology.