hollywood
Hollywood Crews Vote 'Yes' on Strike Authorization, Raising the Stakes for Streaming Giants
Ratcheting up the stakes in an already tense labor battle, members of the International Alliance of Theatrical Stage Employees (IATSE) have voted to authorize union President Matthew Loeb to call a strike, the group announced Monday.
The decision could lead to the most significant industry walkout since World War II, should negotiations with a powerful trade group remain deadlocked.
53,411 behind-the-scenes workers in entertainment participated in the vote, and more than 98% of those voters supported the strike authorization, the union announced. "The members have spoken loud and clear," said Loeb in a press release. "This vote is about the quality of life as well as the health and safety of those who work in the film and television industry."
The vote will be used as a bargaining chip in ongoing talks with the Alliance of Motion Picture and Television Producers (AMPTP), which represents Disney, Apple, AT&T and other giants in entertainment and tech.
It comes as the rise of streaming has ramped up the tech industry's influence in Hollywood, ensuring that Amazon and Netflix have a seat at the bargaining table alongside major studios such as Sony Pictures and Paramount.
"Every single local that voted far exceeded the 75% threshold for strike authorization," John Lindley, president of the International Cinematographers Guild, said in a message to IATSE Local 600 members on Monday. "We are now scheduled to return to the table tomorrow, October 5th, to hear from the employers."
IATSE consists of camera technicians, editors, makeup artists, location managers and a host of other workers in entertainment. In negotiations for a new contract — also known as a basic agreement — IATSE representatives have pressed for "meals and breaks during the day; rest periods between shifts and on the weekends; a living wage for the lowest-paid people; and some appropriate adjustments to new media [streaming] based on its maturity," Loeb said recently.
But talks have stalled for weeks on a number of issues, from raising the wage floor to funding IATSE members' pensions through a greater cut of streaming profits.
While IATSE has yet to declare a strike, the AMPTP warned last month that a walkout would "have a devastating impact on the industry and inevitably will result in thousands of IATSE members losing their income, failing to qualify for health insurance benefits, jeopardizing funding for the pension plan and disrupting production."
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With reports of a new $1 billion fund in the works, The Chernin Group (TCG) is doubling down on media's continued transition from simple entertainment into a vehicle for commerce.
News of the fund was first reported on Tuesday by Axios. TCG confirmed to dot.LA that it was hiring three new partners, Maureen Sullivan, Luke Beatty, and Jarrod Dicker, all of whom should help the company expand into new verticals and guide future investment decisions. But, it declined to comment on the new fund.
The investment group, which was launched in 2010 by former Fox executive Peter Chernin and former media executive Jesse Jacobs and now totals more than 40 employees while managing more than $1 billion in assets, said the new hires will help them invest in more companies that have that coveted ability to turn brand loyalty into consumer action.
TCG has a track record of investing in media companies, with a portfolio that already includes Barstool Sports, Headspace, crunchyroll, The Athletic, Hello Sunshine and more. TCG focuses specifically on supporting companies that can turn media content into product sales. With such unprecedented access to content creators and brands, consumers rely on these parasocial relationships to guide their spending habits like never before.
"If you think about the media business historically, you're used to ESPN and MTV as consumer brands, but historically they haven't been consumer businesses; they were ultimately selling content through a disruptor—a directTV or a cable operator," said Jacobs. "The internet changed all that."
Jacobs said the Pink Whitney, a pink lemonade and vodka mixture sold by New Amsterdam Vodka in partnership with Barstool Sports, is a perfect example of their content-to-commerce model. The concoction was born out of a hockey podcast known as "Spittin' Chiclets" in which former NHL defenseman Ryan Whitney joked that he enjoyed pink lemonade as a mixer. For whatever reason, the idea caught fire. Fans of the podcast began sending pictures of their homemade "Pink Whitneys" all over social media, and a meme was born. In less than a year the official Pink Whitney drink was on the shelves all across America. They've sold more than 15 million units in less than two years with plans to expand into Europe and beyond.
"You feel like those people are such experts in that particular vertical that you're going to trust whatever it is that they say or whatever they recommend," said Jacobs. "You also feel like you're part of that community when you transact."
In particular, the firm seems to be targeting women's products, the outdoor industry and blockchain technologies — specifically as they relate to the creator economy. Sullivan brings experience from her time as president and chief operating officer of both a skincare company, Heyday, and subscription-based clothing rental brand Rent the Runway.
Beatty brings extensive experience with digital media and brands and recently led TCG's investment deal with The Pro's Closet, a Colorado-based company specializing in bike resale. "We have a view that there's a lot going on in the mountain town community," Jacobs said.
Dicker, the former CEO of the cryptocurrency Po.et, brings expertise in blockchain technologies. TCG is betting that the booming creator economy is ripe for blockchain adoption.
"If I buy [a Taylor Swift] ticket for $150 and resell it to you for $1000, Taylor Swift doesn't get anything [from the resale]," Jacobs explained. "Now if that ticket is on the blockchain, she can get a piece of every future transaction." In the world of Patreon and Kickstarter, TCG is also interested in how blockchain technologies can help give investors equity in the content they back.
"If a is created on the blockchain, you can ultimately own a piece of the economic interest in that. And then wherever it's distributed, however it's monetized, you can ultimately participate in that. That's an area that Jarrod [Dicker] spends all of his time on," Jacobs added.
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"We continue to believe that the HFPA is committed to meaningful reform. However, change of this magnitude takes time and work, and we feel strongly that the HFPA needs time to do it right," NBC said in a statement. "As such, NBC will not air the 2022 Golden Globes."
The network added that, provided the HFPA "executes on its plan" of reform, "it is hopeful we will be in a position to the air show in January 2023." The move follows revelations in February that the organization of 87 Los Angeles-based journalists who work for foreign media outlets lacks Black members — a gross omission that may have directly resulted in awards season contenders like "Ma Rainey's Black Bottom" failing to earn nominations for the "Best Picture" category in February.
As a result of widespread criticism in recent months, the HFPA introduced a plan that would increase the number of Black reporters, as well as other people of color, in its ranks, by admitting 20 new members in 2021, with a specific focus on Black recruits. The group also proposed new restrictions on gifts and payments they can receive for their work on committees.
But the proposed reforms aren't appeasing some corners of Hollywood. Netflix, Amazon Studios and WarnerMedia have all declined to participate in any more HFPA events until the organization enacts significant and demonstrable changes.
"We know that you have many well-intentioned members who want real change — and that all of us have more work to do to create an equitable and inclusive industry," Netflix co-CEO Ted Sarandos wrote in a letter to the HFPA's Leadership Committee last week. "But Netflix and many of the talent and creators we work with cannot ignore the HFPA's collective failure to address these crucial issues with urgency and rigor."
Hollywood talent have recently joined the backlash, as well. On Monday, Tom Cruise returned his three Golden Globe statues for his turns in "Born on the Fourth of July," "Magnolia," and "Jerry Maguire" in protest; last week, Scarlett Johansson, who has been nominated for four Golden Globe awards, urged the industry to "step back" from the annual awards.
"The HFPA is an organization that was legitimized by the likes of Harvey Weinstein to amass momentum for Academy recognition, and the industry followed suit," Johansson previously said in a statement. "Unless there is necessary fundamental reform within the organization, I believe it is time that we take a step back from the HFPA and focus on the importance and strength of unity within our unions and the industry as a whole."