Oops. The AMPTP should have first checked with its bosses in Big Media before making that threat to SAG leadership to lower the employer offer on the table because of the dire outlook in this "deteriorating economy" for Hollywood movies and television. As it happened a lot of the infotainment CEOs were out of town at the annual Allen & Co. media conference. 
And they were making statements that were a lot more optimistic than the ones coming out of AMPTP headquarters. It's yet another case of the moguls talking out of both sides of their mouth -- by claiming strong results to Wall Street and pleading poverty to Hollywood guilds. (Remember, this telling YouTube video "The Voices Of Uncertainty" put together by WGA members that featured the Big Media CEOs boasting about the behemoth bucks their companies are making off the Internet?) Here's how the moguls answered questions at Camp Allen about their companies and the economic downturn:
-- NBC Universal President Jeff Zucker: “I think we'll hold up pretty well." (AP)
-- News Corp. Chairman and CEO Rupert Murdoch: “So far, entertainment and media is doing just fine.” (Bloomberg TV)
-- Sony Corp. Chairman and CEO Howard Stringer: “Our entertainment business is in good shape.” (Bloomberg TV)
-- Time Warner ex-chairman Richard Parsons, responding to a question on his outlook for the media industry: “I’m much more bullish.”
I'm sure there are many more quotes...
While I am no fan of “big media” the constant barrage of cynicism toward the media companies seems to ignore one of the most obvious barometers of ANY corporations health–the stock price. While a few of the big companies are treading water, some are at all time lows. CBS is down to 16 and change and TW is languishing at 13 and change. These companies are not in great economic shape by any measure. Of course the media moguls are saying that all is well. That is their job–to create the illusion that they are doing a good job. A healthy outlook and the promise of a better tomorrow helps them get bonuses. As a shareholder of a few of these companies I am dumbfounded that these senior managers are making ANY bonuses. But as someone who wants to see these stock prices grow, I am not keen on seeing talent get more money either. Your simplistic look at the issues by painting a “good guy” (writers/actors) vs. “bad guy” (AMPTP) is overly simplistic and just plain poor journalism.
Comment by Doug — July 14, 2008 @ 4:41 pm
Yup, the same thing happened during the writers strike, but the moguls’ statements to Wall Street didn’t make any difference whatsoever because the companies simply stayed away from the bargaining table until the writers’ resolve weakened to the point where they’d take any old shitty deal dictated by the AMPTP to the DGA.
(Seventeen-day free reuse window, my ass. A TV show’s “first use” should be considered to be over when the next episode airs; i.e., in seven days at the most.)
Comment by Bye-Bye Residuals — July 14, 2008 @ 5:36 pm
I’m not surprised.
I doubt it’ll do much to actual negotiations…
Comment by SomeAudioGuy — July 14, 2008 @ 6:26 pm
Hey Coup De Tet,
Put this in your pipe and smoke it!
Comment by PPS — July 14, 2008 @ 8:01 pm
What exactly do we expect them to say? These guys are the CEO’s of publicly-traded companies, with the responsibilities that go along with it. So despite what they say to the press, the feeling behind the scenes may be something else entirely.
I would say caution is the better part of valor in this case. Let them say what they need to to ’save face,’ and NEGOTIATE.
Comment by Not Surprised — July 15, 2008 @ 9:24 am