While the industry’s fingers are collectively crossed that strikes against the feature/TV studios by the Writers Guild of America (WGA) and the Screen Actors Guild (SAG) can be averted, there are concerns in the ad community over possible ripple effects that any strike action could have on the spot production business—particularly in an already-tightening economy.
Yet even though the country is currently in the throes of an economic downturn, the conventional wisdom has been—and history has proven—that the advertising industry inherently retains some measure of recession-weathering staying power. In the past, a significant number of major, forward-thinking advertisers have stepped up their investments in the midst of a sluggish economy, reasoning that branding and getting the word out become all the more valuable for both short- and long-term company prospects.
But an uncertain twist on that scenario is possibly looming—namely that a strike or strikes might adversely impact the new fall TV programming season. Even the most bullish advertisers may curtail their original spot production if they find the new season of TV shows to be lackluster and unable to reach the desired demographics. On the other hand, several sources indicate that the broadcast and cable networks—as well as first-run syndicators—have a decent stockpile of programs at the ready, having pushed through production over the last few months in preparation for a possible strike or strikes.
The latest film permit figures in Los Angeles show a continuing escalation in location lensing of features and TV shows. According to the Entertainment Industry Development Corporation (EIDC)—the private/public sector partnership that oversees the joint Los Angeles County/City Film Office—permit production days in March for TV programs totaled 1,228, which represents a 4.7 percent increase over the same month in 2000. The tally from January through March of this year is 3,194 days—a 14.7 percent hike for the same three-month period in ’00. Feature production location shoot days in Greater Los Angeles have gone up a whopping 45 percent for January through March ’01, as compared to ’00.
just in case
The networks have formulated strike contingency plans. ABC, for example, reportedly has slated a fall lineup that includes Monday Night Football, Who Wants To Be a Millionaire?, Whose Line Is It Anyway, 20/20, The Mole, a new reality series tentatively titled The Runner, and an inventory of existing and new series, TV movies and theatrical motion pictures.
However, ad buyers have expressed concern that a strike action could prompt an overload of reality and news shows, representing a mix not as inviting as the perennial menu of first-run sitcoms and drama series.
Still, many commercial houses remain guardedly optimistic that a strike or strikes won’t come to pass, and that even if one or two do, the fall schedules will have enough attractive fare to lure advertisers and fuel spotmaking. A couple of production companies added that they are making significant headway on new media ad projects in that advertisers, who have adopted a wait-and-see attitude on the Hollywood labor front, have seen fit to move ahead and invest in experimentation in such areas as interactive television and Web-based ad initiatives.
The current WGA contract with feature/TV studios runs through May 1. The SAG pact is slated to expire two months later. Optimism that settlements can be reached is grounded in the fact that common sense dictates compromise—and reportedly the dollar gap between the WGA and management is surmountable. However, many would argue that common sense isn’t necessarily so common on either side of the bargaining table as evidenced by the duration of last year’s strike against the advertising industry by SAG and the American Federation of Television and Radio Artists (AFTRA).
But that six-month-long strike might have ironically created a scenario more conducive to a negotiated settlement being reached by SAG and feature/TV studios this time around—at least that’s the assessment of attorney Ira Shepard, legal counsel to the Joint Policy Committee (JPC) of Broadcast Talent Relations for the Association of National Advertisers (ANA) and the American Association of Advertising Agencies (4A’s). The JPC represented the ANA and the 4A’s in last year’s negotiations with SAG and AFTRA.
Addressing last month’s ANA Television Advertising Forum in New York, Shepard alluded to the fact that SAG members lost in excess of $100 million in wages during the advertising strike. "They [SAG] can’t afford another strike," said Shepard. "I am confident they will hammer out an agreement."
Meanwhile, as earlier reported, the strike threat has also spawned a potential directorial crossover dynamic. Talent agents have been seriously exploring spot opportunities for their longform director clients in the event of a strike or strikes. Several ad agency producers have told SHOOT that they have received commercial availability feelers from feature and TV directors’ agents.
