Saturday, October 20, 2007

Writers Guild votes overwhelmingly to authorize a strike


In what union officials say is a record turnout, 90% of members approve a walkout if a contract can't be settled by Oct. 31.
By Richard Verrier, Los Angeles Times Staff Writer
October 20, 2007
Hollywood's film and TV writers are ready to trade their pens for picket signs if they can't reach a deal with their employers by Halloween.

Members of the Writers Guild of America voted by an overwhelming margin to authorize their leaders to call a strike if they can't negotiate a three-year contract with the major studios to replace one that expires Oct. 31. Of 5,507 members who voted, 90% favored granting a strike authorization. Guild officials said the turnout was a record for the union, which has nearly 12,000 members.

"Writers do not want a strike, but they are resolute and prepared to take strong, united action to defend our interest," said Patric M. Verrone, the guild's president. "What we must have is a contract that gives us the ability to keep up with the financial success of this ever-expanding global industry."

The vote -- sought by guild leaders to give them more leverage in negotiations that have been stymied by deep differences -- marked the first time writers have voted on such an authorization since 1988. That vote paved the way for a 22-week strike that cost the entertainment industry an estimated $500 million.

The vote doesn't mean there will be an immediate strike, but it gives guild leaders the option of calling one sometime after the expiration of the contract.

Few were surprised by the results announced Friday, given that contract talks have been highly contentious and both sides have spent months preparing for a showdown. Seeking to defuse tensions, the major studios on Tuesday withdrew a proposed revamping of the decades-old residuals payment system, removing a major stumbling block to negotiations.

But that decision came too late to have much effect on the vote because most guild members had already cast their ballots. Studios have held the line on the union's other key demands, such as granting residuals for shows streamed over the Web free and giving writers a bigger cut of home video sales.

"A strike authorization vote is a pro forma tactic used by every union in the country, and usually the vote is overwhelmingly in favor of a strike," said Nick Counter, president of the Alliance of Motion Picture and Television Producers.

"We are not surprised with the outcome of this vote, given reports of how this election was conducted. Our focus is on negotiating a reasonable agreement with the WGA."

Writers have rallied behind a theme that might best be summed up by the Who's hit song "Won't Get Fooled Again." Writers maintain they were shortchanged years ago when they agreed to a discounted pay formula for home video sales, only to see that business take off. And they're determined not to make the same mistake again as the digital revolution upends the entertainment industry.

"The guild made a bad deal 20 years ago and they've been angry ever since and they don't want to do it again," said Jonathan Handel, an entertainment industry attorney with TroyGould in Los Angeles and a former associate counsel for the Writers Guild. "That's why we're seeing a line drawn in the sand."

For their part, the studios maintain that DVD sales are needed to offset rising marketing and production costs, and they contend that it's too early to lock into pay formulas for shows distributed online because technologies are rapidly changing and they're still grappling with uncertain business models.

Although the vote drew wide support from writers, one of the guild's more prominent members blasted the union's handling of the ballots.

Writing on his blog Thursday night, Craig Mazin, whose credits include the films "Scary Movie 4" and the upcoming "Superhero!" accused the guild of breaking from a long-standing practice of conducting elections through secret ballot. Mazin wrote that a union "strike captain" called him, saying she had been informed by the guild that Mazin had not voted, and she urged him to do so.

"I'm disgusted with guild leadership for daring to be so bold, and for abandoning such an obvious and necessary prerequisite for a fair and decent democratic referendum," he wrote.

A guild spokesman said, "Members were encouraged to vote, but how they voted was completely secret."

Until recently, conventional wisdom was that the guild would not walk out immediately but would work without a contract until early next year, to line up its negotiations with the more powerful Screen Actors Guild, whose contract expires June 30. SAG representatives have been sitting on the sidelines of the writers' talks, and both unions have been closely aligned on a number of issues, especially concerns about Internet pay. As is often said, writers can't shut down production, but actors can. For that reason, many studio executives have been more focused on preparing for a possible actors' strike next summer.

In an effort to shift the spotlight back on their union, Writers Guild leaders have declared in recent weeks that members are prepared to walk out as early as Nov. 1. The change in strategy was partly an effort to jump-start negotiations that were going nowhere, according to guild insiders. Guild leaders also reasoned that they could inflict more damage by striking during the middle of the fall TV season than by waiting until early next year, when studios would have stockpiled more scripts.

Although networks have enough shows to carry them through the fall season, a strike next month would disrupt midseason programs that begin airing in January and next year's TV pilot season. A prolonged walkout could force the networks to cancel a number of series in advance of the key February sweeps period, when the networks showcase their best shows to drive up ratings that help establish the advertising rates for television stations.

Writers Guild leaders also were said to be concerned that the Directors Guild of America would negotiate an early deal, setting a framework for the other talent unions and potentially undercutting the Writers Guild's own goals. The Directors Guild has laid the groundwork for negotiations to begin this year, well before its contract expires in June.

Walking out next month, however, poses a considerable risk for the Writers Guild. Today's studios are better able to withstand a strike than in 1988 because they're owned by media conglomerates with deep pockets.

For their part, network executives have been preparing for a strike for months and say they will be ready should a walkout happen. They've ordered an unusual number of pilots for next year and have lined up a plethora of reality TV shows, sports programs and shows culled from their libraries to fill the airwaves during a strike.

Writers are rushing to finish scripts by Oct. 31, the deadline many studios have imposed. Some feature film studios have put a moratorium on signing deals with writers until the contract dispute is resolved.

Writers also are trying to grapple with far-reaching strike rules the guild recently announced. The rules could prove especially nettlesome for so-called hyphenates, writers who also work as producers and directors, who find themselves caught between two warring groups. To keep working, and to avoid possible fines and sanctions by their unions, some writers have signed contracts to work as "producer consultants," said one entertainment industry attorney, an arrangement that would allow them to cross picket lines.

Thursday, October 4, 2007

Global laying off 200 across Canada

"New digital technology will permit broadcast centres to insert graphics and sets that are tailor-made for the local news markets, while creating a look that will unify the newscasts under the Global and E! umbrellas."

From the Financial Post:

CanWest cuts 200 TV jobs; moves to more digital offerings
Barbara Schecter, National Post
Published: Thursday, October 04, 2007

TORONTO -- CanWest MediaWorks expects to shed about 200 jobs from its news operations over the next 18 months as it centralizes broadcasting operations in four cities and invests in new digital technology.

Christine McGinley, senior vice-president of operations for CanWest MediaWorks, which runs the Global Television and E! networks, said news coverage in cities including Hamilton, Montreal and Winnipeg will continue to be assigned, gathered and anchored locally, but newscasts will be broadcast from control rooms in Vancouver, Edmonton, Calgary and Toronto.

The reorganization does not require approval from the Canadian Radio-television and Telecommunications Commission because the hours of local programming required by the broadcaster's television licences will be maintained, said Ms. McGinley.
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"We are evolving from an analogue to a digital world, and we have to be there whether we want to or not," she said, noting a regulatory requirement for all Canadian broadcasts to be switched over to high-definition signals by 2011.

Production staff affected by the cuts announced Thursday are being encouraged to apply for 50 new positions at the four broadcast centres, which are all expected to be operational by the spring of 2009.

CanWest is investing $30-million in the new digital broadcast centres. The annual savings resulting from the job reductions will be determined when the exact number of layoffs is known, a company spokesperson said. One analyst estimated the savings would amount to about $7-million to $10-million a year.

The cuts will go further than production and technical staff in the Maritimes and Quebec, where news operations are unprofitable, said Ms. McGinley.

Six full-time and two part-time employees in Quebec City were given layoff notices Thursday, leaving two full-time news staff to cover events there, she said.

CanWest employs about 2,000 production staff across its broadcasting operations, with about 1,500 of those at its stations across the country.

Steve Wyatt, senior vice-president of news and information at CanWest MediaWorks, said the new digital technology will permit broadcast centres to insert graphics and sets that are tailor-made for the local news markets, while creating a look that will unify the newscasts under the Global and E! umbrellas.

Wednesday, October 3, 2007

American TV shows sweep Top 10 in Canada


"Once again, Canada television shows failed to crack the top 20 primetime list despite hundreds of millions of dollars being spent annually by the Canadian television fund."

From Digitalhome.ca


The first week of the fall television season in Canada is now complete and BBM Nielsen Media Research reports that, for the key adult 18-49 demographic that advertisers cherish, every primetime show in the top ten was produced in the United States and rebroadcast in Canada.

Once again, Canada television shows failed to crack the top 20 primetime list despite hundreds of millions of dollars being spent annually by the Canadian television fund.

The top five primetime shows in Canada among viewers 18-49 for the week of September 24th were House, Grey's Anatomy, Survivor: China, Heroes and CSI.

Nationally, House was seen by 1.93 million adults 18-49 while Grey’s Anatomy delivered 1.42 million and Survivor: China garnered 1.34 million viewers. Among all viewers aged 2+, the top show in the first week of the new fall season was Grey’s Anatomy on CTV delivered 2.6 million viewers while Survivor: China came second with 2.45 million viewers.

The following is a list of the Top 10 Primetime shows in Canada for the week of September among Adults 18-49 according to BBM Nielsen Media Research

  1. House (Global) - 1.93 million
  2. Grey's Anatomy (CTV) - 1.42 million
  3. Survivor: China (Global) - 1.34 million
  4. Heroes (Global) - 1.14 million
  5. CSI (CTV) - 1.11 million
  6. CSI Miami (CTV) - 1.1 million
  7. Desperate Housewives (CTV) - 1.01 million
  8. CSI New York (CTV) - 963,000
  9. Prison Break (Global) - 920,000
  10. Family Guy (Global) - 827,000


Canadian primetime television shows failed to crack the top twenty among Adults 18-49.




Wednesday, September 26, 2007

Shaw "extremely disappointed" he can't bring U.S.A. to CAN

Shaw Communications disappointed with CRTC denial of access to USA Network

CALGARY - Cable TV company Shaw Communications Inc. (TSX:SJR.B) says it's "extremely disappointed" with the federal regulator's decision to deny access to the USA Network, the major basic cable programming service in United States.

"The CRTC is continuing on a path of protectionism for the benefit of certain Canadian programmers at the expense of Canadian television customers," Peter Bissonnette, president of Shaw Communications, said Tuesday.

"Shaw strongly believes that Canadians deserve access to the best national and international sources of programming - that is what the Broadcasting Act promises."

In January, Shaw applied to add USA Network to the lists of non-Canadian services that Canadians are allowed to receive. The CRTC turned down the application on Sept. 19, citing the need to protect the niche Canadian digital service Mystery TV, which airs three of the same programs.

Shaw said CanWest Global (TSX:CGS), which owns Mystery TV with TVA, acknowledged in its intervention on the issue that "USA Network is truly a general-interest service. It does not limit itself to any one particular genre but is rather a leading provider of original series, off-network television shows, sports events and blockbuster theatrical events."

The CRTC's decision "is particularly surprising given its statements in recent speeches and proceedings about the need to focus on consumers and respond to the challenges of black market satellite, the Internet and other new technologies," Shaw said in a release.

Shaw Communications is a diversified communications firm with 577,000 kilometres of fibre, whose core business is providing broadband cable TV, high-speed Internet, digital phone, telecommunications services and satellite direct-to-home services through Star Choice.

On the Toronto stock market Tuesday, Shaw shares rose 15 cents to close at $25.25.

It's all about the "brand".

Corus revamp includes 53 layoffs
Canadian broadcaster offers 'focused' changes
By TAMSEN TILLSON
From VARIETY.com

TORONTO -- Toronto-based Canadian broadcaster Corus Entertainment issued 53 pink slips Tuesday as part of a streamlining process that began in July.

Changes include the merger of Corus' interactive team with Nelvana Studios, its animated division; cuts to broadcast and post-production departments; and the combining of acquisitions and original production at the pay channel Movie Central and its Corus Kids division.

In addition, the company's ad sales group has been retooled with the creation of a "platform innovation team" and a post, VP of non-linear business development, as well as the merger of kids' ad sales teams.

"These changes ensure a strong, brand-focused approach for creating superior content for audiences across all platforms," said a release from the company, whose cable channels include YTV, Treehouse, W Network, and pay channel Movie Central, as well as radio interests.

A publicly listed company, Corus is controlled by the Shaw family, which owns Shaw Communications, Canada's second-largest cabler.

Monday, September 17, 2007

Buy Low/Sell High

Friday, September 14, 2007

Subprime and the Alliance deal take 2

Though this article from the Globe and Mail briefly touches on the issue of the junk bond crisis (Subprime in other words), it's another glimpse into the reality of Leveraged Buyouts (LBO's), and how these nasty little schemes end up enriching the investment bankers who make the deals and hurt those who have no clue (the investors, the little guy....like the pensioners who unwittingly hold CanWest in their portfolios).

An excerpt (from Globe & Mail):

If there's a crisis brewing in the markets, CanWest always finds a way to step in the middle of it. After it bought Hollinger International's Canadian newspapers in 2000, it got caught in a credit squeeze, resulting in a horrible bond deal at usurious interest rates. When the company decided to float those papers as an income trust in 2005, it got hurt again; the deal closed just as it began to look like then-finance minister Ralph Goodale was going to tax trusts (he didn't). When it went to finance the Alliance deal this summer ... well, you know - it ran full-speed into the junk bond meltdown.


 
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