Question for FilmTVLaw.com:
Hi there. I work as a writer and occasional producer in TV, but I’ve been on a hiatus for the last few years. With the demise of agency packaging, it seems like the industry has opened up a whole lot, and I need to get up to speed on the shift. Would you mind digging a little deeper into the changes and new potential out there for people like me?
Answer by Brandon Blake, Entertainment Lawyer:
You are right, some big changes in the past two years. There’s been a landmark shift in how business gets done in Hollywood since the successes of the protracted WGA writers’ strike in 2020-2021. I’ll go into a little more detail on it in a minute. While it created a huge change in how business gets done in Hollywood, it was very much for the best, not only for WGA and non-WGA writers, but for the industry as a whole and the way independent television development works. If you’d like to stay up-to-date with these sorts of shifts in the entertainment industry, you’re welcome to spend some time with my other in-depth entertainment industry articles at https://filmtvlaw.com/entertainment-lawyer-qa.
Recapping the 2020-21 WGA Strike
To recap for any other readers not in the loop, the WGA enacted strike action sought to bring an end to the then-common practices of paid packaging and affiliated production. Lasting an epic 22 months, a key cornerstone of the action was removing an ‘agent’s right to negotiate packaging fees’. They also wanted to see a reduction in the interests of agencies in production houses- which, as you can imagine, led to a rather self-serving cycle where cash flowed only one way.
WGA-affiliated writers were told to avoid using agents who hadn’t signed the new agreement. With all of the then-’Big Four’ having significant interests in the production side of the business, the strike was a protracted one indeed, with the major agencies being the key holdouts. Eventually, each signed their own version of the deal, requiring them to reduce production interests to under 20% and cease packaging. The WME was the last to sign.
Why Was It Needed?
As you can imagine, agents are well placed to ‘package’ differing talents together, as they can represent cast, writers, and more. In theory, packaging wasn’t a problem- it was simply the process of matching talent with writers and presenting a ‘bundle deal’ to the production companies, studios, or networks. That’s why packaging per se isn’t dead- in fact, it can still be a bonus for some indie script pitches- but the key word was paid.
The problem arose due to (somewhat hidden) conflicts of interest, where the production companies/studios were paying for the packaging. This created an atmosphere where it was possible the agent was working less in the writer’s best interest (hunting the best deal) and became more about working on the production side as an extension of the studio. Being well positioned to guide a project through development is fantastic, but not while working against the primary client’s best financial interests.
The Current Landscape
With this shift, we return to a place where agents are working not for production companies, but on getting the biggest fees possible for their writers. Whether packaging did disproportionately affect writers specifically, as the WGA claimed, can be debated- but the overall result is a healthier atmosphere for everyone, including those involved in independent television production and development.
Firstly, it makes finding agency representation a bit easier for writers, if that’s a route you want to go, as onboarding talented new clients has moved back to the agencies’ main prerogative. More importantly, however, writer-producers in the indie industry can still leverage the benefit of ‘packaging’ their works with an interested cast. Studios do like having the burden of gaining interest in a project removed, after all, as it makes their lives easier and the project more viable for them. Nor does it short agents, as renewed demand for their client list will finally be seen as a good thing.
So it wouldn’t be hyperbole to say an unintended side effect of the WGA deal was opening up an entire new era in independent television development.
What About Production Companies?
Plus, the production companies don’t lose out, either- and the playing field is a lot more level for smaller companies. Under the old system, you would be locked to the directors, cast, and writers represented by just one agency (and thus heavily favoring larger companies). This need to have everything repped by a one-stop shop has fallen away, in-house production companies are rarer and with less agency interest, a better balance can be struck.
Again, this makes a particularly favorable shift for indie outfits of all sorts, which now have a much better chance of getting that coveted ‘foot in the door’. Now, instead of being in a quasi-investor role, forced to only accept what agents bring to the table, production companies can fully control their own development and packaging and invest in the product.
The Role of Representation
However, to make the most of the new era of independent television development we are now in, quality representation of some sort is a must. Most networks and studios will only work with proposed packages from known representation they have worked with before, for liability reasons. It no longer has to be an agent- a great entertainment lawyer will open as many doors (if not more) than the classic agent structure on the development and producing side of things.
I have personal contacts through almost every major network and studio out there, and their top executives will happily pay attention when our firm submits. In fact, few entertainment legal firms have the depth of relationship and scope of contacts I do. Let alone in as many fields- I’ve handled everything from dramatic and comedy series for networks and streamers through to feature films, docuseries, and reality work.
So if you’re looking to self-develop your next indie TV product, feel free to get in touch. As always, I provide these articles as general information, not specific legal, tax, or accounting advice. So always seek your own experienced and individual legal counsel before making financial or legal decisions.