Question for FilmTVLaw.com:

Just read that UTA is going to get out of packaging. Is that a good thing for an indie producer? I don’t understand how this is going to effect me if I wasn’t repped in the first place.

Answer by Brandon Blake, Entertainment Lawyer:

Nothing more ground shaking going on in the entertainment industry these days than what has become the massively successful campaign by the WGA to get signatory agencies to stop the practice of packaging. It’s nothing but a good thing for WGA and non-WGA writers and producers and represents a whole new era in Hollywood. In addition to this article, I share more than a hundred in depth entertainment industry articles on my website at https://filmtvlaw.com/entertainment-lawyer-qa.

PACKAGING – TWO PHONE CALLS OR A LOT OF WORK?

At the heart of all of the controversy between WGA and the agencies is packaging. Up until the past two years, agencies dominated packaging, because they represented writers and cast, so they were able put together projects with their own clients and then present those projects (as representation) to production companies, networks and studios.

But the problem emerged when it turned out that the packaging at the agencies was in fact being paid for by the production companies and studios. The WGA believes this created a conflict of interest, because the agencies became an extension of the studios and large production companies, working to put together projects, rather than getting the best rates for represented writers.

What has not been addressed is the fact that packaging is a lot more than just “two phone calls.” While it does rely on an extensive database of contacts, to be successful it also requires developing the properties, knowing network and studio mandates, and basically guiding a project through development. That takes a lot of time and is something that production companies and studios should be paying for since it benefits them. That is what major agencies did in the past to package a project, and it wasn’t cheap, easy or done in two phone calls.

NEW FREEDOMS

If the WGA can get either CAA, WME or ICM to join into the packaging ban, then they will have officially won the fight on behalf of their writers. Agents will no longer be working on the behalf of production companies, studios and networks, but instead will be working on collecting the biggest fees they can for their writers. This means that WGA writer fees on new television series and feature films should go up, which is a serious victory for creators. For decades writer fees have stagnated compared to the increases in rates that A-list cast were collecting. That could be because agency packaging disproportionately hurt writers, which explains why SAG and DGA have not fought the same battle that WGA did against packaging.

For writer-producers who are not currently represented by a major agency this is a double win. First off, if agencies get back to representing writers and talent, rather than packaging and producing movies, they should have more time and more incentive to bring on new writers. That means that more writers should be able to find agency representation.

Second, writer-producers can begin to package their own projects, putting together the same thing that studios and networks got used to getting from the major agencies. A whole new era is starting of independently packaged and developed projects, all of which will be done with the blessing of agencies, because now when there is demand for their clients, they will actually be happy about it.

GOOD NEWS FOR PRODUCTION COMPANIES TOO

This is also great news for production companies, big and small. In the past, production companies would go to one agency and get the agency involved with packaging their project. The problem creatively, and economically, was that now the production company was locked into writers, directors and actors that were represented by just one agency.

Creatively production companies were shepherded into a walled garden, where every element of the project would need to be repped by the same agency. Then add on top of that the in-house production companies, and the production companies were basically urged to sign a financing or production deal with the same company providing the cast and the creative elements.

In a lot of ways, production companies were simply viewed as investors, the ones that actually brought cash into this whole closed ecosystem of packaging and development.

REPRESENTATION

With the end of agency packaging, representation for production companies and writer-producers is more important and valuable than ever. To bring a packaged project to a studio or network, the studios and networks require that a production company have known representation with which they have worked before for liability reasons.

I have personal contacts at nearly all of the major studios and networks, and can guarantee that top executives will review projects submitted through our firm. Very few firms have the scope of contacts or depth of relationships in all fields of entertainment, from feature film to network and cable dramatic and comedy series, reality series and docuseries, I have creative executives in all genres reading great new material.

Rather than simply investing into a WME packaged and developed project, production companies can now grab the reins and invest in their own packaging and development, so that critical development dollars go to where it ought to be spent, in the development of their own project.

Feel free to contact our firm about film or television packaging. As with all complex entertainment matters, please seek experienced entertainment legal counsel before making legal and financial decisions. This article is for informational purposes only and does not represent legal, accounting or tax advice. Do not act on this article without hiring legal representation.

- By Brandon Blake, Entertainment Lawyer