AMPTP POSITION STATED TO THE WGAW AND WGAE TODAY
BY AMPTP PRESIDENT NICK COUNTER
We’ve been working hard to come up with a package in response to your last proposal. But we keep running up against the DVD issue. The companies believe that movement is possible on other issues, but they cannot make any movement when confronted with your continuing efforts to increase the DVD formula, including the formula for electronic sell-through.
The magnitude of that proposal alone is blocking us from making any further progress. We cannot move further as long as that issue remains on the table. In short, the DVD issue is a complete roadblock to any further progress.
This cannot come as a surprise. Before the negotiations began, Writers Guild of America West President Patric Verrone met with many CEOs. The consistent message from the CEOs was that, for overriding business reasons, the home video formula would not be changed. Nevertheless, you proposed to increase the DVD formula in these negotiations.
We want to make a deal. We think doing so is in your best interests, in your members’ best interests, in the best interests of our companies and in the best interests of the industry. But, as I said, no further movement is possible to close the gap between us so long as your DVD proposal remains on the table. In referring to DVDs, we include not only traditional DVDs, but also electronic sell-through -- i.e., permanent downloads. As you know, we believe that electronic sell-through is synonymous with DVD.
There are pending claims with regard to electronic sell-through that will be resolved through the arbitration process. But to make any new agreement with you, residuals for the DVD market, including electronic sell-through, must be paid under the existing home video formula.
We are ready and willing to proceed to reach agreement with you. We call upon you to take the necessary steps now to break this impasse so that bargaining can continue for our mutual benefit and the good of everyone else who works in this industry.
After Nick Counter presented the above position, the WGA advised us that they were not prepared to continue tonight. When asked about tomorrow, they said no, we have a membership meeting. When they were asked about Friday, they advised they would call us.