Studios withdraw demand involving residuals in contract talks with writers

[Omaha Steve]

http://www.mercurynews.com/news/ci_7195192

By GARY GENTILE AP Business Writer
Article Launched: 10/16/2007 04:39:06 PM PDT

LOS ANGELES—Hollywood studios said Tuesday they will take a divisive demand involving residual payments off the table in contract talks with writers in hopes of avoiding a costly strike.

The Alliance of Motion Picture and Television Producers said it will no longer demand that companies recoup their entire investment in films and shows before sharing any of the revenue with writers in the form of residuals.

"We do this because we have concluded that we will be unable to reach an agreement with you if we continue to pursue a recoupment initiative," J. Nicholas Counter, president of the alliance, said in a statement.

Members of the Writers Guild of America had called the demand a deal-breaker and threatened to walk out when their contract expires Oct. 31.

The guild praised the move but said the studios' remaining demands "would gut our contract and will never be acceptable to writers."

"By maintaining our resolve, we will come out of these negotiations with a good contract that not only benefits writers, but the entire entertainment industry and the communities that depend on it," the guild said.

FULL story at link.

[Cronus Protagonist]

1. I'm surprised they haven't made this into a reality show...

:P