Challenges As Opportunities: Writers Strike Benefited Indies

By Erin Somers

In the industry all are well aware of the Hollywood writers strike’s effects on upcoming TV seasons worldwide and the changes to the U.S. television industry. It remains to be seen if these changes are going to be permanent, as predicted, or just temporary, as hoped.

However, little has been said about the effects –– one way or another –– of the strike on the U.S. independents and foreign television production and distribution companies. At first sight, many independents seemed to have come out of the strike unscathed, and a lucky few even saw some benefits. VideoAge spoke to a cross-section of independent companies to find out if and why David fared better than Goliath during the writers’ crisis, which engulfed TV networks, studios, producers, distributors and even cities.
The city of Los Angeles lost an estimated $2.2 billion over the course of the 14-week industry-wide shutdown.  After the walkout, it took months to get scripted programming back up and running. Los Angeles-based industry veteran Irv Holender, who recently took the helm at Toronto-based Fremantle Corp., provided an overview of the strike’s effects. Overall, he said, “no one was immune to the shutdown because companies lost the momentum and continuity they were building when shows were put on hiatus.”

But in contrast to the millions lost by the networks during the three-month hiatus, the cost to independent companies was far less drastic. Still, Holender explained, indie-wise, the consequences of the strike varied from company to company. How a production company fared in the drought depended on product inventory, he said. “If you had plenty of product in the pipeline, you didn’t suffer.” He also pointed out that U.S.-based independent distributors with off-network products were in a good position to sell, as the stations were looking to fill holes in their schedules.

Herb Lazarus, president of Carsey-Werner International, cited the nature of his company as the reason it avoided catastrophe. Carsey-Werner’s properties are all syndicated shows, mostly classic sitcoms, and thus the firm requires no new content. “If you weren’t producing any programming, there was no effect,” he said. “The library that we deal with just keeps turning over and over whether there is a strike or not.” Lazarus also pointed out that the fact that some series did not return to the airwaves after the strike was a plus for small distributors. The shows that perished left gaps to be filled by syndicated shows or international content.

A non-American TV executive who wished to remain nameless concurred that non-U.S. companies also profited from the strike. He suggested that the dearth of content from the U.S. gave foreign production houses the opportunity to step in and serve local audiences. “Some of the locally-produced shows took off,” said the source, “And [TV] stations realized that they don’t have to spend so much money on American content when what they make domestically is just as popular.”

Some companies, like Toronto-based Cookie Jar Entertainment –– which employs predominantly Canadian writers who report to their own national union, the Writers Guild of Canada –– were able to avoid the WGA blackout. “We definitely hire some American writers and we had some live-action series that were put on hold during the strike,” said Ann Austin, head of Development for Cookie Jar. But because it had a lot of product in the can, Cookie Jar “wasn’t in a place where the three-month delay affected it drastically.” Additionally, because Cookie Jar’s programming is comprised mostly of animation, it was more or less business as usual.

Greg Phillips, president of London-based Fireworks International, pointed out that the industry is already bouncing back, and that, thankfully, “the strike did not go on long enough to have any major negative effects on the way business is conducted.” On the up side, he said, “it highlighted for the buyers an opportunity to give more serious consideration to non-U.S. network and non-U.S. major product.” Phillips summed up the consequences as “a qualified positive,” because although the industry as a whole suffered, it allowed high-quality content from indies and foreign producers to get some much-deserved attention.

Additionally, Phillips called attention to the fact that everyone knew the strike was coming and no one was blindsided by it. The shrewd foreign company, he said, took advantage of this knowledge and prepared accordingly by “setting the bar higher, carefully examining what the U.S. market needed and engaging itself fully with what the market required.”

Dan Waite, vp, International Sales for Burbank, California-based DIC, said his company also experienced minimal strike fallout. “We’ve been moving on as we normally do,” he said. Waite went on to explain that since DIC is a children’s animation studio, and animation writers are not covered by the WGA, it was able to continue work without interruption. Plus, he added, “we have our scripts done well ahead of time.”
Waite also added that, although his company emerged from the strike unharmed, the walkout had no positive effects whatsoever outside of the writers getting an agreeable contract. “I don’t think there have been any positives for anybody,” he said. “Any pluses pale in comparison to the amount of suffering everyone in L.A. underwent.”

Indeed, the industry was greatly harmed by the three-month stoppage. It was reported that $10 million were lost due to the cancellation of the Golden Globes alone. And that was only one night. However, for some indies, there was an undeniable silver lining.

From the beginning of the strike, it has been the norm that many TV executives, wishing to steer clear of the sensitive issue, have kept mum about the strike, and a number of companies contacted by VideoAge refused to comment, for fear of stepping on writers’ or studios’ toes. However, no matter how diplomatic the indies are being, studio paralysis during the strike created opportunities for the little guy. At this year’s L.A. Screenings, with studio content occupying only two or three hours of the buyers’ time, rather than whole days, perhaps the indies will get one last chance to take advantage of the strike.