Just days after the smoke cleared from last week’s devastating fires, Los Angeles began bracing for another firestorm-this time from the entertainment industry.
The union representing the 12,000 film and TV writers who make the world laugh, cry and sing is going on strike for the first time in almost 20 years. These are the writers who work behind the scenes, crafting storylines and bits that keep viewers enthralled day in and day out.
While an extended strike would cost the industry millions, not to mention the thousands whose paychecks rely on the health of TV and film, the wireless industry stands to gain some ground. In 1988, the last time the Writers Guild of America went on strike; the walkout lasted 22 weeks and cost the industry around $500 million.
Mobile to fix itch
If something on that level occurs again, viewers might start finding it difficult to get their TV fix come spring season. What’s ironic is that while the WGA is looking to get more residual payments for online and mobile content, among other things, a strike actually could push more viewers to get their television on those mediums. The Alliance of Motion Picture & Television Producers has steadfastly refused the union’s demands for increasing residuals from DVDs, online and cellphones.
“If people are more prone to tune into their mobile phones during this period, that’s great. We welcome that,” said Aaron Radelet, a communications manager focusing on entertainment services at Sprint Nextel Corp.
The No. 3 carrier has taken a determined approach to developing and acquiring exclusive content for its subscribers, even going so far as building its own studio in Chicago.
“You want to be able to have that draw,” Radelet said during an interview with RCR Wireless News last week as the strike loomed.
“We’re not saying this is ever going to replace your TV set,” he added. “The customers don’t necessarily care what Sprint is producing and what someone else is producing, they’re just looking for something cool that’s interesting in their lives.”
CBS, Fox, NBC and MTV declined to comment on how the strike could affect their increasingly tenacious push into the mobile space. Meanwhile, mobile broadcast TV provider MediaFLO USA Inc., which is a division of Qualcomm Inc., directed questions back to the networks.
Wait and see
The writers strike comes at a unique time for the wireless industry. Carriers and Hollywood are more closely aligned than ever before, yet this will mark the first time the wireless industry would have to weather a storm of this magnitude from mostly outside forces.
“Obviously we hope there’s no strike, but beyond that I’m not sure that we’re going to add a lot of value by giving specific comment on it,” AT&T Mobility spokesman Mark Siegel said.
“At this point we’re not seeing any effect,” Verizon Wireless spokesman Jeffrey Nelson said.
Carriers and networks that carry more diversified video offerings, such as music videos, animation and reality shows won’t suffer as much if an extended strike occurs because most of that work comes from non-union writers.
“When it comes to content, especially Vcast Video and Vcast Mobile TV services, there are a host of content providers,” Nelson added. And there’s plenty of non-union work to pull from because of that.
Still, the majority of video on mobile devices is aggregated from the networks’ normal programming. But, the exclusive programming that carriers have on hand is sure to help them as viewers seek new programming if at-home television offerings begin to diminish.
“For video, there’s no single magic bullet right now,” Radelet said. Sprint Nextel’s years-long strategy in video has been aimed at striking deals with new and old in the TV and film industry to give its customers everything from shows that enjoy mass audience appeal to niche, independent programming, he said.
