Lionsgate, A Studio With No Conscience

 

It's an outrage, especially in New Orleans, that Lionsgate is releasing Disaster Movie on the 3rd anniversary of Hurricane Katrina. The studio that has hawked torture porn for years has now decided to make a buck off the suffering of hundreds of thousands of people, and on the eve of another terrible storm about to strike the Gulf states. "Around these Katrina-scarred parts, Aug. 29 is still -- and will be for some time -- a black-armband kind of day," criticized Mike Scott, the movie writer for the local newspaper The Times-Picayune. "For Lionsgate studios, however, Aug. 29 isn't quite as sacred. For them, the third anniversary of the day the levees were breached and New Orleans slipped under is something on the order of perfect timing: a ripped-from-the-headlines release date." Lionsgate is quick to point out that the pic's disaster isn't meteorological; it's an incoming meteor and claims the opening date is an unfortunate coincidence. "The film does not depict or parody any actual natural disaster, and the release date of 'Disaster Movie' is in no way a reference to or joke about the anniversary of Hurricane Katrina," read a studio statement prepared for The Times-Picayune. As the newspaper noted, "That's a hard line to swallow. Tasteless humor and B-movie comedies have their place. But this confluence of dates isn't just a cheap laugh. It's a cheap shot to an entire region still digging out from an all-too-real disaster."

Especially when the film was shot in Shreveport, "the place that started siphoning film business from New Orleans within weeks of the storm," Scott wrote. "Neither Friedberg nor Seltzer can credibly plead ignorance to the significance of Aug. 29 or its continued impact on this part of the country. They shot their previous spoof, Meet the Spartans, in New Orleans last year during the July and August lead-up to the second anniversary of Katrina. Surely they ventured far enough from the coziness of their hotel rooms to witness the lingering devastation of one of the worst natural disasters in American history." Oh and irony of ironies, the film's box office will be impacted this weekend by another bad storm. So most Gulf Coast state residents will be too busy making evacuation plans for Gustav which is heading their way now. "Lionsgate might find that funny. New Orleans isn't laughing," Scott concluded. I say this move by Lionsgate is unconscionable. Shame on studio bosses Jon Feltheimer and Joe Drake. 

URGENT! Actors Guilds And Advertisers Agree To 6-Month Contract Extension

I just received the following announcement:

New York and Los Angeles (August 27, 2008) – Screen Actors Guild (SAG), the American Federation of Television and Radio Artists (AFTRA) and the advertising industry’s ANA/AAAA Joint Policy Committee on Broadcast Talent Union Relations (JPC) today jointly announced an agreement to extend, through March 31, 2009, the terms of their Commercials Contracts. The extension adds six months to the previous two-year extension the parties agreed to, which covered the period from 2006 to 2008.  That extension was set to expire on October 29, 2008.

The news at least delays whether or not SAG and AFTRA will negotiate the next contract jointly or separately.

More Back & Forth Between SAG/AFTRA

TOLDJA! Alli Shearmur Joining Lionsgate

I was out of the office yesterday but DHD readers already knew what Joe Drake finally announced: that Lionsgate hired Alli Shearmur to head a new production arm as part of the studio's expansion. See my previous from July 18th: Major Expansion At Lionsgate

TheDeal.com Also Says MGM Is For Sale...

So my sources, BusinessWeek's sources, and now TheDeal.com's sources all report that MGM is for sale despite the studio's denials. Last night, the well-known financial website (whose articles require a subscription) noted that MGM doesn't need Goldman Sachs because it already has relationships in place to, quoting from a statement it released Monday, "explore enhancements to MGM's long-term capital structure." The website cited in particular existing MGM arrangements with J.P. Morgan Chase & Co. and Royal Bank of Scotland Group plc. "Veteran film financier John Miller of J.P. Morgan, which with Credit Suisse Group committed $4.25 billion in debt financing for MGM's acquisition by a consortium in April 2005, was described by one source as the go-to guy should MGM wish 'to rework the credit facility.' RBS, meanwhile, has been trying to raise a $500 million credit line for the studio for six months."

So, asked TheDeal.com, what's left for Goldman to do? "Something it does really well, sources speculated, which is investigate M&A opportunities."

Sources told TheDeal.com that Goldman Sachs may help MGM take on additional equity partners as well as holding a sale of the company."

TheDeal.com adds more detail to what I've noted previously -- Goldman Sachs' long history with selling MGM. Kirk Kerkorian retained the investment bank in the spring of 2004 to co-run its auction of the studio with Latham & Watkins LLP. In addition, Goldman provided the fairness opinion advising MGM's public shareholders to accept the $12 per share offer that allowed it to go private and led to the studio's $5 billion sale to a consortium consisting of Sony Corp. and Comcast Corp. as strategic investors, as well as Providence Equity Partners Inc., TPG Capital, DLJ Merchant Banking Partners and Quadrangle Group LLC as financial sponsors.

The Deal.com also counted three shifts in the business model employed by MGM: monetizing its 4,000-title library, offering itself as a distribution platform to others, and attempting to return to major-studio status with a full production slate. "That no model has yet panned out explains why MGM's $3.7 billion in debt is trading around 75 cents on the dollar in an increasingly tough credit environment. " 

As for MGM's denial that it's on the block, TheDeal.com notes that "MGM's financial sponsors have little risk in testing the market. Unlike their strategic partners, who have already written down their investments in the Lion, the consortium's
private equity members can defer mark-to-market revisions until they exit."

The financial site also predicted that UA's Merrill Lynch financing could disappear, too, after UA's development and production delays under the administration of  Paula Wagner and Tom Cruise. "Sources also took issue with MGM's contention that 'existing financing arrangements are sufficient.' Even the much-discussed $500 million facility for the studio's United Artists Corp. division (secured last August from Merrill Lynch & Co.) may not last its anticipated production run of 15 to 18 movies over five years. Because it's really a revolving facility, one source explained, UA films
must meet certain hurdles to avoid 'defaults.' But given UA's performance with Lions for Lambs and the budget overruns already recorded for Valkyrie, a year-end release, it's conceivable the facility won't cover more than a total of four films."

  1. 'Valkyrie' Nazi Extras Sue Tom's UA Studio
  2. MGM Now Claims It's Not On The Block
  3. Goldman Sachs Shopping MGM -- Again
  4. Now Bond Plays Xmas Release Date Game
  5. Look What Tom Cruise Made Harry Say...
  6. Paula Wagner Is DOA At United Artists; But Was It Suicide or Murder By MGM?
  7. Another Top Executive Exits United Artists
  8. Hey, Harry Sloan, Show Us MGM's Money
  9. New Joint Premium TV Channel Venture By Viacom/Paramount/MGM/Lionsgate
  10. Hey, What's With MGM's Hiring Spree?
  11. Desperate MGM Studios Throws Hail Mary

Pellicano/Christensen Trial Goes To Jury

terrychristensen2.jpgapellicano.jpgkerkorian.JPG

The conspiracy and wiretapping case against ex-Hollywood P.I. Anthony Pellicano and Terry Christensen, the managing partner of the powerhouse entertainment law firm Christensen, Glaser, Fink, Jacobs, Weil & Shapiro, will be in the hands of the jury after federal prosecutor Dan Saunders ends his closing argument this morning. Patty Glaser, Christensen's law partner who's also defending him, spoke for 3 hours yesterday. According to the Los Angeles legal newspaper Daily Journal's Robert Iafolla (the only reporter providing daily coverage of the 5-week-old trial), both closing arguments focused on the contents of Cristensen's and Pellicano's 34 recorded conversations. "With each side playing the same tape during closing arguments Tuesday, they again offered jurors radically different interpretations. According to Assistant U.S. Attorney Daniel A. Saunders, that first recorded conversation was 'the birth of a criminal conspiracy' between two men with 'an insatiable need to win' without regards to their methods. In their initial talk they forged a secret pact to wiretap a litigation opponent, a 'shocking display of greed, corruption and arrogance' memorialized on more than six hours of recordings, Saunders argued.

"But lead defense attorney Patricia Glaser asserted that first conversation had nothing to do with a wiretapping plot. Instead, Glaser argued Christensen hired Pellicano to discover the paternity of a child born in 1997, not to supply intelligence about litigation that was ongoing [between Kirk Kerkorian and his ex-wife] in 2002. The recordings are proof that Christensen was a 'victim of [Pellicano's] illegal recording, not a perpetrator,' she said."

Pellicano, who once again is representing himself, declined to deliver a closing argument.

In the last Pelliano trial, witnesses testified that several Los Angeles attorneys made use of Pellicano's illegal investigative techniques, but Christensen is the only lawyer indicted in the scandal because Pellicano taped conversations with him. But there's no actual wiretapping presented as evidence because of Pelicano's fail-safe method of computer encryption. But, during closing arguments Tuesday, Saunders said the Christensen-Pellicano tapes were "much better," the Daily Journal quoted. " 'When you get recordings of defendants actually discussing crimes in their own words, there's not a lot you can do to get away form that,' he told the jury. Saunders likened the defense's argument that no recordings of a wiretap means there was no wiretap to 'standing over a body with 10 bullet holes and saying you can't prove murder because there's no gun.' "

This is Glaser's first criminal trial, and the convetional isdom is that she decided to rep Christensen to avoid becoming a witness in the trial herself. "True to her reputation as one of the fiercest litigators in Los Angeles, Glaser pushed the line during her closing, sometimes crossing it," the Daily Journal said. "The judge sustained more than a dozen prosecution objections against her on the grounds that she was arguing facts not in evidence, misstating testimony or misstating the law."

Daily Journal articles are only available online with a subscription.

  1. Closing Arguments Set For Today In Pellicano/Christensen Trial: End In Sight
  2. BIG LETDOWN: Kerkorian Says Nothing Really New At Pellicano/Christensen Trial
  3. UPDATE: Kirk Kerkorian Called To Testify Wednesday At Pellicano/Christensen Trial
  4. Kirk Kerkorian Will Testify For Defense In Pellicano/Christensen Wiretapping Trial
  5. Pellicano Sequel: 'The Odd Couple' Or 'The Incredible Two-Headed Transplant'?
  6. Tapes Heat Up Pellicano-Christensen Trial
  7. SHOCKER! Kirk Kerkorian And Steve Bing May Testify in Christensen-Pellicano Trial
  8. Pellicano Trial Starts For Christensen; His Law Partner Patty Glaser Defending Him
  9. It's Official: Pellicano To Be Tried Twice
  10. Could Pellicano Go Through Two Trials?
  11. Pellicano: Feds Want NYT Source Waivers
  12. Pellicano Hearing: NYT Covering Itself
  13. NYT Unveils Pellicano/Christensen Tapes
  14. Pellicano Scandal: Indicted Christensen Still Talking, His Law Firm Still Troubled
  15. Pellicano Probed? H'wood Attorney Patty Glaser Says "Absolutely Not"

SAG Board Slates To Be Web-Interviewed

The two competing slates in the SAG election, Membership First and Unite For Strength, will be interviewed today at 2PM and 4PM via live Internet streaming using a novel technology known as user generated television. It's U4S leader Ned Vaughn vs MF's current SAG board members David Jolliffe and Ann-Marie Johnson -- but not in a debate format. (I understand MF asked to hold a town hall-type debate early on and U4S declined.) Unfortunately, the host of today's interviews is Jonathan Handel, the entertainment attorney who likes to portray himself as objective but whose pro-AMPTP/anti-WGA opinions quoted regularly by the mainstream media were nauseatingly anti-guild during the writers strike (which is why he was such a favorite talking head of Variety and the Los Angeles Times and The New York Times). Regarding SAG, Handel has demonstrated he thinks all of Hollywood's guilds should be nothing but compliant to the demands of the employers.

IATSE Member Petition Urges Leadership To Stop 'Corporate Welfare' For HBO

I'm told a group of IATSE members are circulating a petition that lobbies IATSE leadership to end what they say is a sweetheart deal enjoyed by HBO at the expense of below-the-line IATSE employees. "With all the labor management strife in recent months, it is important to call attention to us non-striking IATSE members who are under constant attack from studios that continue to insist on concessions and rollbacks from their least powerful employees," one of the insiders emailed me. Here's the petition that advocates the elimination of substandard wages and conditions which are currently part of IATSE's contract with HBO:

NO MORE CORPORATE WELFARE for HBO
To: Elected Officials of IATSE
Sponsored by: FAIR PAY FOR IATSE

We the undersigned IATSE members petition the IATSE leadership to renegotiate our labor contract with HBO.

The current contract sets wages and overtime pay far below the basic television agreement.  While these concessions may have been necessary to bring a fledgling HBO into the union fold, that is no longer the case. HBO has achieved record profits due in no small part to the sacrifices of our IATSE brothers and sisters. We believe it's time for this to end.
  
Presently, most crews on HBO productions work at rates 10% to 30% below scale. DGA, WGA and the Teamsters all work under a basic television agreement with HBO.

Only IATSE has a sub standard contract. 

The current agreement calls for double time to be paid after 14 hours, rather than the standard 12. This concession encourages producers to regularly schedule 14 hour days with little thought to the crew's well-being. We must restore the 12 hour overtime deal and curb this crew abuse.

Hit shows like The Sopranos, Six Feet Under, Curb Your Enthusiasm, and The Wire have made HBO strong and prosperous. We believe it's time they stand on their own and no longer rely on our concessions.

Make HBO honor the IATSE basic agreement!

Delay Those Flights By At Least A Day...

Labor Day Weekend is usually a big getaway for Hollywood types. But if you're boarding a commercial plane today -- DON'T. An FAA flightplan computer glitch has created a mess at airports nationwide. This is also affecting general aviation.

Closing Arguments Set For Today In Pellicano/Christensen Trial: End In Sight

Both ex-Hollywood P.I. Anthony Pellicano and Terry Christensen, the managing partner of the showbiz law firm Christensen, Glaser, Fink, Jacobs, Weil & Shapiro, are charged with wiretapping and conspiracy. Lawyers rested their cases on Friday.

SAG Warns Agents, Managers, Producers, Casting Directors: Hands Off Our Election!

This statement from the Screen Actors Guild is on the big actors union's website. UPDATE: I just found out this is not in response to anything in particular. SAG says it posts this every election cycle:

TO AGENTS, MANAGERS, CASTING AGENTS, AND PRODUCERS
REGARDING RESTRICTIONS ON CAMPAIGN CONTRIBUTIONS

This statement from the Screen Actors Guild Hollywood and New York Division Elections Committees is to inform you of various obligations imposed on you by federal law in connection with the upcoming SAG internal union elections.

Federal law prohibits any employer including employers who are agents, managers, casting agents or producers from contributing anything of value to candidates for any SAG elected office. In addition, federal law may require that candidates who receive such contributions report them to the Department of Labor.

This prohibition includes indirect, as well as direct, expenditures. The prohibition against the use of employer money includes any costs incurred by an employer, or anything of value contributed by an employer, in order to support the candidacy of the member. The use of an employer's office equipment without charge has been construed to be an impermissible contribution by an employer.* (* This restriction does not extend to ordinary business practices that might result in a benefit such as a discount on the cost of printing campaign literature made available on the same terms to other customers of the employer. Such discounts must be made known and available to all persons. The discount cannot be a “donation” to an individual candidate or slate of candidates.)

The following are examples of the application of these legal obligations to situations which commonly are confronted by candidates for Guild office:

No employer may provide any contributions or assistance of any kind to any candidate. Thus, for example, no candidate may solicit the support of any employer that is a talent agency for an individual’s candidacy nor may any talent agency lend such support –- through financial contributions, solicitations of support through emails or mailings, etc. –- even if the candidate did not request the support. Even forwarding emails may be a violation of this policy.

Employees may make contributions only if those employees are not acting on behalf of their employer.

Engaging in any of the conduct described above may jeopardize the integrity of the SAG election process. Please do not violate SAG Election Guidelines or federal law.

'Valkyrie' Nazi Extras Sue Tom's UA Studio

There's more bad news for the movie studio part-owned by Tom Cruise and Paula Wagner with MGM. Last summer, 11 extras dressed in Nazi army uniforms fell out of the back of a World War II-era troop carrier truck as it swung around a corner in central in Berlin during the filming of Tom Cruise's biopic Valkyrie, sending the actors to the hospital with injuries. Now, the actors are suing Cruise's United Artists for $11 million, according to the German magazine Der Spiegel. It reports that the extras' lawyer claims United Artists knew the trucks used in the filming were not entirely safe because there was an internal studio memo about the rickety railings.

Cinemax Going All HD Starting September

HBO announced today that, beginning September 1, the Cinemax main channel becomes the first and only 24/7 premium channel that's "True HD". Unfortunately, it's 1080i -- not 1080p -- according to the news release. Maybe the HBO bosses don't know the difference? This includes Cinemax's library of movies and documentaries and short-form programming.

MGM Now Claims It's Not On The Block

MGM issued the following statement today after I and BusinessWeek received tips that Goldman Sachs had been retained to shop MGM. (See Goldman Sachs Shopping MGM -- Again.) Back when MGM was last on the block in 2004, Goldman Sachs handled that deal, too. Sony and Comcast and Providence Equity Partners and TPG paid roughly $5 billion in debt and equity to acquire then publicly traded MGM from its majority owner Kirk Kerkorian. But one of my financing sources has this to say about MGM's denial today: "What utter bullshit double-speak 'to explore long term enhancements to your capital structure'. What they did is just confirm that they have retained Goldman Sachs.":

LOS ANGELES, CA (August 25, 2008) -- Contrary to recent media reports, Metro-Goldwyn-Mayer Studios Inc. (MGM) is not for sale. There is no "asking price" for the company.  MGM's existing financing arrangements are sufficient to meet its needs.  Goldman, Sachs has been retained to explore enhancements to MGM's long-term capital structure.  All of the MGM shareholders, including Providence Equity Partners, TPG, Sony Corp. Of America and Comcast Corp, are pleased with the Company's current momentum and are committed to the future growth of the studio.

Primetime Pilot Panic: ABC Picks Up 5

EXCLUSIVE: Because of the writers strike cutting short this past spring's pilot season, ABC delayed its development so that most of the network's new primetime scripted series would go midseason. Pilots were shot in July, and today ABC finally started making decisions. None of this has been officially announced:  

Better Off Ted -- The formerly untitled laugher from Victor Fresco (Andy Richter Controls The Universe) and 20th Century Fox stars Portia de Rossi.

Single With Parents -- Starring Alyssa Milano, Annie Potts and Beau Bridges, this sitcom is from ABC Studios and DreamWorks Television and was created by Kristin Newman who's exec producing with Darryl Frank and Justin Falvey. 

The Unusuals -- This Sony Pictures Television show was written by Noah Hawley who's exec producing with Peter Tolan. It stars Amber Tamblyn and Adam Goldberg.

Cupid -- The ABC Studios/Sony show was written by Rob Thomas (who remade his 1990s series starring Jeremy Piven) and stars Bobby Cannavale and Sarah Paulson.

Castle -- This ABC Studios/Beacon TV show was created by Andrew Marlowe who's exec producing with Armyan Bernstein and Laurie Zaks. Rob Bowman directed the pilot which stars Nathan Fillion.

(There's a lot of talk that Prince Of Motor City and Captain Cook's Extraordinary Atlas are possibles. Prince Of Motor City, from ABC Studios, is the well-received hour-long written by Jessica Goldberg and Hamish Linklater who are also exec producing with Chris Brancato and Bert Salke. Starring Annie MacDowell and Aiden Quinn, it's had good buzz from the start. And Captain Cook's Extraordinary Atlas, the Warner Bros TV show, is from writer-exec producer Tom Wheeler and directed by Tommy Schlamme. It's got a high concept and high budget.

'American Idol' Adds 4th Judge; Other Changes Planned To Stop Ratings Slide

You can't pay me to watch Fox's American Idol where the singing sounds like strangled cats. But it's been no secret that the network and the show's producers are planning changes to reverse its declining ratings. This morning, Fox officially announced that Grammy-nominated songwriter Kara DioGuardi will join Simon Cowell, Randy Jackson and Paula Abdul as a judge. But Fox sources tell me there will be "more significant things happening in the small massaging of the format itself" as the network and producers look for ways to "shore up" the ratings. That doesn't mean the bigwgs intend to present a whole new Idol. For instance, there's no plan to get rid of host Ryan Seacrest (darn the luck...). Instead, I'm told the powers-that-be think the early rounds where viewers watch wannabes fall on their faces have become "too repetitive". Instead, this season will spend more time with the contestants once they arrive in Hollywood. Says my insider: "The strength of the show is that the audience wants to meet those 20 contestants. So we'll spend more time with them." Other changes are a result of Nigel Lythgoe stepping down as executive producer of American Idol and stepping back from the day-to-day producing. That now means the show's music can be more updated. "At one point, we had Neil Diamond on, and Andrew Lloyd Webber and Dolly Parton. Nigel wanted to be old school. But the show needs younger music," a Fox source informs.

DioGuardi's background as an award-winning songwriter and producer should help bring an Industry perspective to critiquing the contestants when the 8th season gets underway in January. “We are turning the heat up on Idol this year and are thrilled to welcome Kara to the judges’ table,” said creator and executive producer Simon Fuller.  “She is a smart, sassy lady, and one of America's most successful songwriters.  We know she will bring a new level of energy and excitement to the show.” Executive producer Cecile Frot-Coutaz claims the show "originally intended" for the U.S. version to have four judges like the international series do. Fox non-scripted guru Mike Darnell made it into a gender bender. "For the past seven seasons, Paula has had to endure the experience of being the only woman at the judges’ table. She’s been as an island of consideration and gentle criticism between Randy and Simon, offering her invaluable expertise as a performer and No. 1 artist to the thousands who have competed on American Idol.  With Kara by her side, Paula finally has some back-up and now there is going to be a lot more ‘girl power’ on the show.” 

According to the press release, DioGuardi’s songs have appeared on more than 100 million records and her songs have been recorded by Kelly Clarkson, Christina Aguilera, Gwen Stefani, Celine Dion, Faith Hill, Carrie Underwood, Santana, Pink, Britney Spears, Avril Lavigne, Pussycat Dolls, Miley Cyrus, The Jonas Brothers, Natasha Bedingfield, Jewel, Ashley Tisdale, Katharine McPhee, Taylor Hicks, Bo Bice, Clay Aiken, Ashlee Simpson, Hilary Duff, Jessica Simpson, Kylie Minogue, Enrique Iglesias, Nick Lachey and Marc Anthony. Over the last four years, she has been awarded 10 BMI Pop Awards for having written the most performed songs on radio. From her catalog of several hundred songs, over 264 have been released on major labels worldwide; and over 165 have appeared on multi-platinum selling albums. DioGuardi co-owns Arthouse Entertainment, where she develops and mentors fellow hit writers, producers and artists.

According to her official Fox interview, DioGuardi says getting the gig was a shock. "My agent called me and he said you are on a short list to be the 4th judge on American Idol and I said 'Are you calling for me or did you dial the wrong number?' They were like, 'No, seriously, this is going on. This can happen,' and I was like. 'There is no way they are going to pick me. Why wouldn’t they pick someone famous?  Someone everyone knows?'  But you know, I guess they saw something about me that they thought was good and they wanted to put somebody who was from the industry on the show and so, I got the job."

DioGuardi had a history with the show already. She'd written songs that have been performed and released by Idols.  "I co-wrote Walk Away from Kelly Clarkson and with Kelly Clarkson.  I co-wrote the Real Thing for Bo Bice. I’ve written with Katherine McPhee and for Katherine McPhee on her record.  Clay Aiken and I co-wrote The Way.  Taylor Hicks. Oh, and I actually have a song now on the David Archuleta CD that’s coming out, I think soon.  I co-wrote with David Cook."

She thinks she'll bring to the show "a unique experience in the sense that I sing and was a singer and I write and I produce and I sign talent and I'm very involved in the day to day of the music industry, like Simon. So I think I’ll bring that perspective, but I’m also very opinionated and pretty feisty and not afraid of a good confrontation, so I’m looking forward to it. Bring it on." Here's what she'll for in contestants: "I am gonna be looking for a unique spin, you know somebody who steps in front of me has something to say -- who has a unique look; who has a great voice; a unique tone; isn’t trying to imitate everybody else that’s out there. And, has incredible self confidence because anybody who has ever really made it, steps on that stage and they own it from the minute they step out there. So I think it’s important that you know they really be themselves and that they’re interesting and that they keep me engaged."

As for what makes an American Idol successful in the music biz, DioGuardi opines, "Well, I think there are a lot of things that go into being a successful artist. Obviously you know you have to have the right look, you have to have the right sound, but you have to have the right song.  We’ve seen that even in the Idols some of them have been very successful and some of them haven’t. It’s about that winning song. You know Since You’ve Been Gone was a huge song that catapulted Kelly into absolute stardom. So, it’s really important that everything happen at the same time -- great voice, great look, great stage presence and a great song.  And all that coming together and just somebody who wants it that bad, because it’s a lot of hard work, it’s not easy."

SAG Election: Eric Bogosian, Independent

Eric Bogosian, an independent candidate for SAG's New York Division, sent out this statement:

Dear New York SAG members,
It saddens me to see our union divided while we are trying to negotiate a new contract. I honestly don't understand it. I see names of good friends listed on the anti-leadership slate and I don't get it. You voted our leadership in to do a job, let them do it. Contract negotiations are never easy. But if we want a new contract, we have to let the two sides work it out. And don't believe the producers' argument.

It comes down to this. Either you like residuals or you don't. Either you like have a union protect you or you don't. I've been in SAG for about 25 years now. I joined not to get work, but because I had been employed on a non-union movie in 1983 and was frightened by the dangerous work conditions, lack of adequate breaks and merciless turnarounds.

Since joining SAG, I have worked hard in a healthy environment. I've had the benefit of health care for myself and my wife. Two kids born and raised on SAG health care. I have a pension and I get residuals.

So why do I think those things being threatened? Because whether you like it or not, the internet is the future. And all film and TV will be on the Internet within the decade. And the producers don't want to pay residuals for that distribution.

That's all. You want to believe the producers and AFTRA leadership that this is a good deal? It's your option. But exhibit A is what happened to DVDs. We are still waiting for a reasonable deal on that front.

Of course we all want the two unions to unite. And we want to get along. But I'm still waiting for someone to explain to me why AFTRA began negotiations during the SAG negotiations. Doesn't make sense. I also don't understand why prominent members of the union criticize our national negotiators publicly. What good can that do?

I am not part of a slate. I am keeping an open mind and I am ready to listen to both sides of every argument. But I don't want to mislead you, either. I feel every single one of our hard-earned union benefits will be eroded if we cave to the producers' offer right now. Patience is a virtue here. By the way, we don't need a strike. We just need to hang tough. Right now, the big studios need this contract more than we do.

Someone fought for those rights, those residuals, that health care. Someone did this for me. That's why I'm running. The union has been very, very good to me. I want to make sure it's there for future middle-class actors.

Again, I am not part of a slate. I am offering my hard work and attention to bring honesty and stubborness to these negotiations. Like I said, some of my best friends sit on the other side of the fence on all of this. I look forward to working with them toward a new, strong, healthy contract for all our members.

SAG Election: Brenneman, Jolliffe

More SAG election candidate statements: Unite For Strength's Amy Brenneman responds to Martin Sheen (supporting MF), and Membership First's David Jolliffe replies to Mike Farrell (supporting U4S):

From AMY BRENNEMAN
Before you vote, consider this:
Membership First is lying; Unite for Strength has the SAME position on members’ voting rights as they do.

In an email from Martin Sheen introduced by JoBeth Williams, Membership First has tried to frighten voters away from Unite for Strength by claiming that we plan to take away members’ voting rights. This is absolutely false – and Membership First knows it.
 
Early this year, some of us asked the board to consider limiting voting on the TV/Theatrical contract to members who worked an average of one day per year under that contract. Over 1500 members signed a petition of support, and even Membership First candidates Clancy Brown and Jo Beth herself agreed with the idea.
 
But from the start of our campaign we’ve made it clear that this proposal was not part of Unite for Strength’s platform because we recognized that nothing matters more than bringing our unions together. And to eliminate any doubt, we even made a public pledge that if we’re elected we will take no action to limit the voting rights of any SAG member. We can’t state our position any more clearly than that.

The real choice in this election is whether you want SAG and AFTRA to fight for us together, or continue fighting each other.

Membership First is obsessively focusing on the empty “voting rights” charge because they’re stuck; they just can’t explain how their battle with AFTRA will give actors more power at the bargaining table. Everyone understands that competition between our two unions makes it harder to get fair pay for our work. In the years Membership First has controlled SAG, they’ve done nothing but lash out at AFTRA and it hasn’t done us any good at all. More of their leadership will just bring more competition, making things even worse.
 
We know that one union representing all performers is the better strategy.
 
That’s why unions exist in the first place – to unite for strength.

---

From DAVID JOLLIFFE
Re: Latest From Mike Farrell

Well, as usual Mike is out with another letter filled with untruths, obfuscation and name calling. With no real solution on how to get a good deal for actors NOW.

Mike gets it wrong, right off the bat by saying Doug Allen “was hired by a small faction now in control of our union”.

Mike... Doug's hiring was approved by the entire SAG National Board, UNANIMOUSLY.

Then Mike defaults to name calling. Calling MembershipFirst “Agent Haters”. Well, I for one was married to one of the top agents in this town and still love her dearly. I have nothing but the utmost respect for those that represent us.

What Mike is referring to is the attempt back in 1999 and 2002 by SAG's then leadership to allow our agents to be owned by studios. A complete and blatant conflict of interest. First by a waiver that would have allowed agents to be solely owned (100%) by any and all production entities. This attempt was narrowly defeated in the boardroom (52-48) by those same “crazies” Mike refers to throughout his diatribe. Then another attempt by Mike himself who championed a deal that would have also allowed agents to be owned by studios and/or production entities. An attempt that was defeated in referendum by the membership (not those “crazies) of SAG by a margin of 55% to 45%.

Then Mike goes off on the 2000 commercial strike, again placing blame on those same “crazies” in Hollywood. What Mike fails to recognize is that the strike, as well as the proposal package, was voted up UNANIMOUSLY by both the SAG's and AFTRA's National Boards. (Some 220 to 0 - For the first time in joint history)

The Joint Commercial Negotiating Committee, (made-up 50-50 SAG and AFTRA) was polled throughout the entire process. Those votes to go on strike and stay on strike were ALL UNANIMOUS.

I know – I was there. I was the SAG Chair of those negotiations.

Mike goes on to claim that hundreds of millions of dollars were lost. What Mike fails to admit is that the Commercials Contract was worth $550 million in 2000 and is worth $800 million today. And Mike readily admits that he wasn't around much. If he was, he would have understood that commercial actors couldn't make a living in 2000 because of the poor cable residuals formula. (A formula that was increased 140% in that one/single negotiation.) And that the advertisers were adamant in taking away Class-A network residuals.

The 2000 Commercial strike garnered:
-- The largest single increase in our unions history – 140% increase in cable residuals.
-- Internet jurisdiction
-- Protection of Class-A residuals
-- Increases in the P&H contribution
-- An added $1 million per year for monitoring commercials

And I take personal offense when someone like Mike Farrell (who wasn't there) makes a claim that “instigators grudgingly got out of the way” to “let the adults resolve the strike”. Who were these “adults”? No personnel nor committee member changed throughout the entire strike. We all did it together. I told you... The votes were always unanimous.

Then Mike blames MembershipFirst for the defeat of the AIMA Plan. Hey Mike... There was no MembershipFirst then!

There was a group called SAVESAG. Who made their case against the plan and enough of the membership agreed with them to defeat that plan. The MEMBERSHIP, Mike. Not some clandestine group of “crazies”.

As far as “paying off (staff) contracts at huge expense”... Weren't YOU in charge when Pissano was “paid off”?

Mike claims that MembershipFirst has “spent the union into debt”. Again... NOT TRUE! SAG has on hand some $33 million in cash and cash equivalents. Up some $13 million from when Mike was a 1st VP. All three years MembershipFirst has had the majority, the union has operated with a surplus. ($3.8 million surplus for fiscal year 2006/2007. And a $4 million surplus for fiscal year 2007/2008.)

Now let's fast-forward to these current negotiations.

Yep, Mike is absolutely right. SAG was fed-up with AFTRA having half the say in our contract negotiations. A contract where AFTRA does ZERO work in movies and 5% in Prime-Time Television. Especially in the light that they'd been on a scorched-earth campaign to decimate SAG's cable contract by undercutting them to the extent of eliminating residuals down to 10-15 free exhibition days. We thought it only fair to have proportional representation given the facts of which union earns the overwhelming majority of the Contract. And that when AFTRA was delivered the costs for the 2000 commercials strike, they said they only did 10% of the work, therefor they were only going to pay 10% of the costs. Yep... You heard right. AFTRA insists on half the say – But when it comes to paying for that half say, they run for the hills.

Mike says that SAG was “unable to deliver what they'd long promised with tough talk”. And that it was up to “AFTRA to step in and negotiate like professionals”.

Well, let me tell you Mike, ANYBODY could have delivered the deal AFTRA took. It's a bad deal!

Then you say that it was “an act of desperation” that SAG went out and told it's members what a bad deal AFTRA took.

What were we supposed to do, Mike? Sit silently, knowing the deal's bad? Sit silently thus sending a message to the AMPTP that we wouldn't fight the deal? Sit silently, and not tell our dual members working for the exact same employers that deal was bad for actors? Because, Mike... The point you fail to address and accept is that the DEAL IS BAD!

Let's go over the deal AFTRA calls “groundbreaking”, shall we:
-- No guaranteed union jurisdiction in New Media. (This means Universal, MGM, Sony, Disney, Warner Brothers, etc. can do made for Internet productions without our members.)
-- No residuals in made for New media (except in a very rare circumstance that doesn't even exist at this time.) Both of these first two items go against SAG's core principals established by a unanimous vote of 68 -0 by SAG's National Board on 7-26-08. Principals that clearly state that all acting work done by our signatories must be union – And that all union acting work deserves a residual of some kind.
-- No mileage increase. (We've had the same 30 cents a mile for nearly 30 years. Even the IRS allows for 58.5 cents.)
-- No increase in home-video/DVD. With actors still paying there own P&H contribution.
-- No protection for forced endorsements. Actors have no rights to say NO. (This not only harms us in TV/Theatrical, but the more commercial endorsements are embedded into TV product the more erosion we'll see in actual commercial airings. Thus lowering the amount commercial actors will earn in reuse.)
-- Elimination of the Force Majeure protections we've had for 60 years.
-- French Hours – Meaning no actual lunch break. (Eat when you can.)
-- No residuals for Stunt Coordinators
-- An increase of only ONE background performer in TV.
-- This deal now makes it a “condition of employment” that an actor gives up his/her right to negotiate for clip use. It is a false assumption that any journeyman actor will be able to NOT sign away these rights.
-- All product produced before 1974 is sold out in New Media. If the residuals have paid-out then the actor will get NOTHING.
SAG has made many concessions in an attempt to make a deal.

SAG has tentatively agreed to much of the AMPTP New Media template. A template that when applied to actors results in things like 17/24 days of free airings on the Internet. And a residual for the next 6 months at 3% of scale. (That's $22.77 for the day player, Mike. And a maximum residual for the series regular of just under $100.00).

I do agree with Mike that what happens here will “affect actors for a generation”. A bad deal now WILL affect us all for generations to come. We must learn from the past. We've seen that when a bad deal is made, it never goes away.

I wish Mike Farrell would come join us in trying to get a fair deal for actors in this negotiation.

SAG Election: Membership First's Jo Beth Williams Replies To Unite For Strength

MF's Jo Beth Williams has asked me to post this reply to U4S leader Ned Vaughn per my, SAG Election: 'Unite For Strength' Slate Releases 'Membership First' Emails:

"When the issue of Qualified/Affected Voting was brought to my attention several months ago, I was interested in knowing more about it. I had always been concerned with what I perceive as a conflict of interest when S.A.G. members who make their living as producers, with active production companies, are allowed to vote on S.A.G. contracts. But after taking a considerable amount of time vetting the issue, I came to the conclusion that Qualified/Affected Voting would not be appropriate for S.A.G. members, given the ups and downs of the actor's life. To disenfranchise so many,  just to exclude so few, is not fair and would diminish the strength of our union. This is one of the reasons I fully support Martin Sheen's August 21st letter to the membership."
JoBeth Williams
Screen Actors Guild National Board Member

Cheers & Jeers For NBC's Beijing Olympics

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NBC is crowing its Beijing Olympics has been the most watched American TV event of all time. That's for 16 days on NBC and its cable channels that showed the games. Final figures won't come in until Monday after tonight's carnival-themed closing ceremonies, but already the 211 million viewers have surpassed the 209 million from the previously record-setting 1996 Atlanta Games. Here's the asterisk, though: this statistic doesn't account for the fact that there are more people and more televisions nowadays. So don't take it all that seriously even though it sure sounds swell. Meanwhile, think about what a lost promotional opportunity this was for NBC Universal because its fall primetime schedule is a wasteland when it comes to both quantity and quality of new shows and specials. (How pathetic that Christian Slater's lame "my evil twin is me" series was all that NBC had to market over and over ad nauseum during the games. It's already clear that Jeff Zucker's brilliant idea to save money by killing pilot season backfired big-time, and NBC will wind up in 4th place yet again.) Still, at a time when U.S. networks even have trouble attracting dougle-digit Nielsen ratings for shows, the Olympics is a big reminder that eyeballs and not just demographics do matter to advertisers. NBC reached a record $1 billion in ad sales before the start of this Olympics, and pulled in another $25 million after the games began. Which is why  next time around NBC is going to face stiff competition for the U.S. broadcasting rights to the Olympics after its contract expires in 2012. For instance, ESPN and Fox said last week they plan to be in on the bidding process for at least the 2014 Winter Games and 2016 Summer Games when the IOC begins the auction process next year. I say a change is long overdue, especially after NBC's coverage in Beijing was over-edited, ridiculously compliant to the Chinese government (Bob Costas is no Jim McKay, and he clearly was afraid to ultimately ask hard questions or adequately express pathos over the unthinkable tragedy of a murder and near-murder at the games, much less arrests or human rights), and still failed to let viewers watch what they wanted when they wanted on TV or online despite all the hype promising just that.     

Ben Stiller's 'Tropic Thunder' Hops Past 'The House Bunny' For No. 1; Overall Box Office Equal To 2007 Summer's Record

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SUNDAY: Sony's low-budget comedy The House Bunny, starring Scary Movie's Anna Faris and featuring Hugh Hefner's trio of Playboy blondes in this blatant rip-off of their TV show Girls Next Door, almost beat out bigger budget movies. But after winning Friday, the $25M sorority spoof hopped back to No. 2 behind last week's No. 1, DreamWorks / Paramount's Tropic Thunder, which cost considerably more. The R-rated Ben Stiller-Jack Black-Robert Downey Jr satire about moviemaking regained the top spot Sunday with a $16.1M weekend after taking in $4.8 million Friday and $6.5 million from 3,352 venues for a new cume of $65.6M. It held up well at the box office midweek and was down only 38% this weekend to wind up the third movie this summer to repeat as #1. Overall, this Memorial Day to Labor Day domestic box office is just a few percentage points down from last summer's record $4.16 billion, to Hollywood's surprise and amazement. But that's because the major studios churned out more edgy and original fare than the predictable and tired prequels, sequels and threequels of a year ago. Meanwhile, PG-13 The House Bunny found enough of the girl power audience (the script is written by Legally Blonde masterminds Karen McCullah Lutz and Kirsten Smith) to earn $5.8 million Friday and $5.2 million Saturday from 2,714 theaters for a $15.1M weekend. It was produced by Adam Sandler's Happy Madison company.

Coming in a close No. 3 was Universal's Death Race starring British action star Jason Stathem which debuted to $4.6 million Friday and $4.4 million Saturday in 2,532 dates for a disappointing $12.2M weekend despite attracting an ethnically diverse audience that was only 38% Latino and 12% African American. Warner Bros' mega-blockbuster The Dark Knight wound up No. 4 after raking in another $2.9 million Friday and $4.4 million Saturday from 3,163 plays for what was a $10.3M weekend. The pic is closing in on an amazing $500 million North American cume (now $489.1M) before the end of August -- which will set yet another record. Coming in No. 5 was LucasFilm/Warner Bros' animated Star Wars: The Clone Wars which earned a $5.5M weekend weekend from 3,542 venues for a new cume of $24.9M. And, making it three comedies in the Top 6 movies at the box office, Sony's Judd Apatow-bannered R-rated comedy Pineapple Express managed another $5.6 million weekend from 2,620 runs for a $73.9M cume. The only other newcomer was Dimension-MGM's Ice Cube football comedy The Longshots, which eked out just a $4.3M weekend from 2,089 theaters for 9th place. (No wonder there's news that MGM's investors have put the flailing studio up for sale.) And, finally, Fox Atomic's leftover The Rocker opened stillborn Wednesday and finished 12th Friday with only $2.7M for the weekend and a 5-day cume of just $3.8M. Usual powerhouse Fox has had a truly lousy summer.

The rest of the Top 10 were holdovers: #7 Fox's Mirrors posted a $4.8M weekend and new $20M cume, #8 Universal's Mamma Mia! had another $4.3M weekend and new $124.4M cume, #10 Universal's The Mummy 3: Tomb Of The Dragon Emperor took in a $4M weekend and new $93.8M cume.