Bear Sterns, the Wall Street financial giant, calls bullshit on Studio claims of dire straits (via United Hollywood):

From Wall Street’s perspective, we estimate the impact of accepting the [writers'] proposal is largely negligible," Bear Stearns wrote in a report last week.

The firm estimates that the $120 million figure would carry an average impact of less than 1% on annual earnings per share for the media companies. That does not factor in any concessions by the writers’ side (the WGA), where the principal issue is a desire for a piece of ad dollars from new-media distribution.

The potentially small financial impact suggests that studios (Alliance of Motion Pictures and Television Producers) are more concerned about setting a precedent in new-media revenue sharing. However, Bear Stearns wrote that the writers’ forecast for that market "strikes us as fairly aggressive." The firm hinted that studios are looking to the future. They are concerned that a favorable settlement would embolden directors and actors in their coming renegotiations. (emphasis mine)

The studios are more interested in their own greedy, grasping potential future profit margin growth than cutting a fair deal with anyone on the creative end of things. Never mind that it is the creative work that makes all that money for them in the first place. Without a solid, well-written product, the studios have bupkis.

This is a prime example of bloated ego leading the way in negotiations, rather than common sense and solid business numbers. The studios are digging in and making much ado about nothing…because they think they can get away with it with little to no cost to them from viewers.

Wrong.

Please take some time today to write a few letters to the studios — and let them know that they should negotiate with the WGA or risk losing your viewing dollars. Meanwhile, Comedy Central is forcing Jon Stewart and Stephen Colbert back on the air — without their writers, and they’re refusing to even negotiate with them. You can sign a petition to Comedy Central and tell them to cut the crap here.

Speaking of support, the WGA has strike swag available — the profits from which go to the strike fund to help out writers who need a hand during this strike.

There are rumors that the DGA may be stepping in to try and broker a deal between the obstinate studio heads and the WGA. Nikki Finke has more rumors on what has been going on behind-the-scenes. I have to say, a united front between the WGA, SAG and the DGA along with the various production unions would be a formidable array at a negotiation table — I just hope their idea of "brokering" isn’t undermining the writers.

It is well worth a mention that with "ad lib" television coming to a late night broadcast near you (not exactly a ratings bonanza — "waxing Jay Leno’s car collection, day 9") and with the upcoming awards season likely to be filled with pickets including stars in couture in front of empty red carpets, this is a perfect time to put more public pressure on the studio heads to stop being so damned pig-headed and greedy.

Unless, of course, the networks want to front out Joan Rivers’ snippy ad-libbed reviews of picket signage in front of an empty red carpet…


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