It’s finally over! This week we’ve heard the news that the lengthy dispute between the WGA and talent agencies over packaging fees has finally drawn to a close- fast approaching three years after the matter was first raised. This victory for the WGA comes as the final holdout, WME, signs an agreement with them.
This means that all major agencies have now signed some form of deal with the WGA. Not only does it act in WGA member’s favor in incidents of packaging, it also sees major talent agencies agree to minimize their interests in production companies. This means they have, in effect, returned to the older 10% commission business model we haven’t seen in play for over a decade.
Specifically relating to the WGA and WME, this also signifies the death of the antitrust lawsuits each had against each other, citing their renegotiation of terms and settlement. Endeavor (speaking for the WME) is now on record as looking forward to moving on from the conflict, and honoring writers as part of the ‘lifeblood of WME’.
While the WGA’s campaign to end these ‘problematic’ practices first began in 2018, April 2019 marks the point at which the most divisive split for WME’s writer-clients occurred, and the return to ‘business as normal’ with their agents of choice will be the first for them in almost 2 years. It’s probably not too surprising that WME proved the final holdout, as they have the most corporate structure of the larger agencies. Also, Endeavor Content, its production-distribution affiliate, has over 300 projects currently in development, and winding down to a sub-20% interest will not be easy.
While it’s been a long road to reach this point, the dismissal of both antitrust lawsuits against each other and the return to ‘business as normal’ for the agents and writers most affected by the power struggle can no doubt be seen as a welcome step to refocusing on the pandemic-wrought struggles in the industry. BLAKE & WANG P.A Entertainment Lawyer Los Angeles wishes them well.
