Packaging fees and agency production create conflicts that distort writers’ compensation
Evidence
After a breakdown in negotiations with the Association of Talent Agencies on April 12, 2019, the Writers Guild of America (WGA) took the unprecedented step of instructing its members to fire their agents. More than seven thousand writers—92 percent of the guild—dutifully did so. At issue was the WGA’s new code of conduct that prohibited agents from taking packaging fees (which the WGA claims is a breach of fiduciary duty, as it incentivizes agencies to negotiate a lower fee for talent) or engaging in production (which it claims is a conflict of interest, as the agencies are again incentivized to lower fees). Smaller agencies signed on to the code of conduct, but the big agencies—Creative Artists Agency (CAA), Endeavor (formerly William Morris Endeavor Entertainment), United Talent Agency (UTA), and International Creative Management (ICM)—filed lawsuits against the WGA, initiating a drawn-out, costly legal battle. Though the big agencies were backed by massive private equity firms like Texas Pacific Group (TPG) and Silver Lake Partners, this bold labor action by the WGA was ultimately successful, a rare victory for solidarity against financial capital. — Andrew deWaard, Derivative Media, 239
Categorization
- DEFINE: Packaging fees and agency conflicts of interest are defined concretely via the WGA’s code of conduct rationale.
- ADDENDUM: Not directly any of the three articles, but the theme of labor solidarity against financial capital resonates broadly.