Month 6: Playing Monopoly by the actual rules, we found ourself creating the same downward housing market! Weird!

Truth be told, I didn't like this class. Coming from a family of lawyers, my negotiation skills are pretty sharp. The best part about this class (or at least my favorite) was that we played Monopoly... using the actual rules... something I've never actually done before. Using the power of negotiation, bartering, investing in one another's property and cutting deals we found ourselves at a standstill. No one wanted to build on property because of separate interests, lack of funds and materials... too many houses were being built and no one could afford them, no one was making any money. We created the housing crisis, in four hours, without realizing what we were doing! Now that, I found amazing! We all learned a valuable lesson that day. Stay away from real estate...

It was in month 6 that I played my first MEISA open-mic. I figured that if I couldn't contribute in a leadership role than I would participate in entertainment and music portion of MEISA. My music regularly went over very well with the crowd. I became a staple at MEISA open mic's and other music events, championed by the President Matt Kenny.

Below is my leadership portfolio assignment for month 6 as well as a case study on the Writers Strike completed this month:

To: Susan Bain

From: Jarrad Stallone

Re: Leadership Portfolio – Interview with Jon Heller, Creative Services Project Manager at Campbell Soup Co.

Date: March 23, 2009

The Situation:

This weekend I had the opportunity to entertain my good friend and former colleague at Campbell Soup Co. here in Orlando. Jon Heller, Creative Services Project Manager at the Campbell Soup Co., and I worked together years ago. Jon has been with Campbell’s in this role for over 5 years. Jon manages projects within the creative services department including, but not limited to internal resources photography, including web content and photojournalism for uses in annual reports and internal communications. Jon is also responsible for shooting and editing all video for use in corporate functions, marketing and sales presentations. He is an encyclopedia in relation to new media technology and an incredible asset to the Campbell’s family. Jon and I have known each other for over 5 years and I was in his bridal party for his wedding. For my business plan, I am planning on creating a travel television show that will be HD heavy and in need of someone with Jon’s unique skill set. Another strong point about Jon is that he is currently attending Rutgers University for his MBA and is interested in pursuing a career in brand management. Having known Jon for as long as I have, I thought it would be valuable to sit down with him to try and recruit him for the project.

Pre-negotiation analysis, Research and Planning:

Knowing that Jon’s particular skill set is currently in high demand, a wealth of knowledge around the new media spectrum I planned on sort of buttering him up over the weekend. Taking him out to cool places around Orlando and showing him a good time. Entertaining potential business partners is a great way to disarm their initial pretenses or apprehensions about the project. I approached Jon as a friend not as a business partner. I also, over the weekend peppered my television production company project (ON TOUR! Productions) into conversations, attempting to get feedback, showing him things like my projects I have done in other classes, showing him the potential office space and real estate in the Winter Park area, knowing that he and his wife have been discussing relocating outside of the Philadelphia area.

Deal Making Experience:

After discussing a partnership opportunity with Jon all weekend, we came to terms that Jon was not the best fit for the role I need for my company. I am looking for someone who can take the reins on the creative end of the television show, someone who can make critical decisions on what gear to use to get a unique feel to the show. I also need someone who is willing to spend over 3 months on the road working at least 12-hour days for the months on the road. The remainder of the year this person would be responsible for edit the show. The role would also pay $70,000 per year including benefits.

After extensive discussions with Jon he expressed that his biggest concern was the months on the road. He has been married for over 2 years now and he and his wife have been discussing having children. They already have 2 high-energy dogs to take care of. Another concern is Jon’s ambitions to become a brand manager at a Fortune 300+ company.

He did note that the position sounded phenomenal given different circumstances. He said that the pay and that the opportunity to travel were enticing. He urged me to pursue candidates with less personal responsibility. He said that there are videographers who are just as talented that with less of a life outside of their work. He also urged me to not offer a partnership to these people. He said that the salary and personal and professional benefits associated with this role were more than enough to draw in the right person.

Deal Points with Jon Heller

No deal was made with Jon Heller.

My Performance:

I felt that I did the best I could do under the circumstances. I did expect that Jon would bite a bit harder on the opportunity. Had I presented this opportunity to him 2-3 years ago I feel that he would have jumped on it. However, once someone’s mind is made up regarding personal life it is hard to sell that person on something that impedes on his or her personal life. I did my best trying to sell Orlando and my television show, however his heart was in a different place.

Other Parties Performance:

Jon had performed well. This was not an in class exercise, nor did I make it aware that I would be reporting our weekend for school. His responses were honest and exact. This was a solid negotiation, and he as the talent had all of the power in this conversation. He knows what he is worth and what he wants; this opportunity wasn’t to his immediate liking so he had to decline.

My Strengths and Weaknesses:

I feel that I presented my case strongly. I did my best at entertaining and sharing the concepts of the television show. I feel that I did everything I could to get Jon to agree to work with me. Unfortunately, the timing was not right on his end. I feel that my greatest weakness came when I attempted to mix both our friendship and what I felt was a good business opportunity. I feel that I might have come on too strongly as a “friend” and less like a business partner, which could have sent mixed signals.

Other Parties Strengths and Weaknesses:

As stated before, I feel that Jon was unwavering in what his intentions were. He has certain responsibilities that are far more important to him than simply a “cool” opportunity. All of the chips were on his table and he knew it. Again, I feel that his weakness was treating this conversation as friends. I feel that we both negotiated as friends and not as business partners. We used safe contexts to seemingly not offend each other.

What Went Well:

I feel that all of the discussions went fairly well even though Jon declined the opportunity. He was able to give me great feedback on both the television show and the business venture itself. He was also able to give me guidance as to what type of person I was looking for. I left the conversation knowing that even though this wasn’t the job for him that I had his complete support. I know that once this gets underway I can reach out to him for his feedback and I will get honest and effective criticism.

What Could Have Been Done Better:

As stated before, I feel this might have gone more smoothly had we not approached the conversations as friends. Had there been more of a professional business-recruiting feel to the weekend I feel that perhaps he might have taken the proposal more seriously. Knowing his level of expertise and current position in his career and personal life I should have known that this wasn’t the right fit for him.

	Abstract

The Writer’s Strike: It’s Negative Impact Jarrad Stallone March 27th 2009 To: Susan Bain, NDM Full Sail University

Introduction

The Writers Guild of America Strike (better known as “The Writers Strike”) took place November 5^th 2007 and lasted until February 12^th 2008. This 100-day strike turned the film and television entertainment industry upside-down. What began as a seemingly reasonable negotiation for increase in residuals for the writers from the producers and media conglomerates turned into a virtual bloodbath for the industry.

At the time, the end of the strike was seen by many as a victory for the Writers Guild of America (WGA) and the Screen Actors Guild (SAG) over the Alliance of Motion Picture and Television Producers (AMPTP). In retrospect, I as well as many other veteran industry professionals and entertainment critics view the strike as detrimental to the industry and economy as a whole.

What lead to the strike? Why did the strike turn so bitter and ugly? What were the repercussions of the strike? Who, if anyone benefited from the strike? Now just over a year later it is far easier to answer these questions.

What Lead To The Strike?

In 1988, amidst the early and quite expensive stages of Betamax and VHS the WGA negotiated a deal with the AMPTP regarding residuals (or payments made to the creator of a piece of performance art based on repetition, such as reruns as it pertains to television shows). In 1988 the videotape and early laser disc market was still viewed as an unknown market – even thought Betamax broke onto the scene in 1981. The cost of manufacturing was quite high roughly $40 for laser disc! The WGA and the AMPTP settled into a contract allowing the writers to recoup a .3% of the first million reportable gross tapes sold and .36% thereafter, known in the industry as the Minimum Basic Agreement (or MBA) . Within a few short years VHS and DVD manufacturing costs dropped dramatically and popularity increased 100 fold. Throughout the past 20 years new technologies and media formats such as streaming Internet content makes the sale and distribution more and more cost effective for the producers of content. At the same time, the WGA is still operating under the MBA clause at 3%. (Wikipedia, 2008) Today the cost of the average DVD cost for the producer is near 50cents and they in turn sell them for an average of $20. So why not increase the residuals for those who created its contents? For every $20 DVD sold the writer of that content gets paid 4cents. What the WGA wanted was 8cents. These residuals help to pay writers healthcare benefits and aide them in times of unemployment, which for writers can be quite frequent as they are victims of ratings. (wgaamerica, 2007)

Another major reason for the strike was that the writers of reality based content and animations were not included under the MBA clause to begin with. When the writers of these shows showed interest in joining the WGA in their efforts to secure an increased residual the majority of them were fired in retaliation. (Wikipedia, 2008)

Why the Negotiations Turned Ugly

The major sore spot for both sides of the table were the issues surrounding new media content, the streaming videos online as well as the iTunes distribution networks. For these methods of distribution the SAG and WGA members were receiving nothing. They felt entitled to residuals surrounding these forms of sales. The WGA rallied around the slogan “If they get paid. We get paid!” (McNary, David Young Defends Writers Strike, 2009)

The AMPTP argued that the streaming video content was for promotional use only even though websites such as ABC.com, NBC.com and HULU.com ran full episodes complete with advertising revenue. The WGA argued that if they are earning revenue than their members are entitled that earning. This is what led to the 100-day strike. (wgaamerica, 2007)

What They Finally Settled On

The deal that was struck between the WGA and the AMPTP was far less beautiful than what the WGA sought after. After 100 days the came to an agreement to pay the writers 3.5% across the board as opposed to 3% on all residuals – this includes writers involved on reality based shows and animation. The 3.5% residuals is also included on the new media forms of distribution, with an exception, the writers are paid a flat fee for the first year of usage excluding the first two weeks after posting the title where the said title is considered promotional use. (McNary, WGA, Producers Reach Tenitive Deal , 2008 ) This agreement has proven to be pointless. A recent study shows that the majority of streaming viewership occurs between the first 24 – 72 hours after airing online. (McNary, WGA, Producers Reach Tenitive Deal , 2008 )

Though the strike seemingly produced a less than stellar deal, WGA executive director David Young remains positive in regards to the outcome.

"The strike meant a quarter of lost earnings, and then the economy went into a severe recession followed quickly by a collapse in the financial markets. These events have caused hardship and loss of income for many people, and writers are no exception. But these difficulties don’t change the fact that writers together achieved gains that will stand the test of time." – David Young (McNary, David Young Defends Writers Strike, 2009)

Negative Impacts of the Strike

There are countless negative ramifications of this strike. The first and most obvious being that for the 100 days out of work, the entertainment industry reportedly lost $2.1 in lost economic activity, according to a report issued in June by the Milken Institute. Another $2.5 billion in lost wages for workers in Los Angeles alone. (LITTLETON, 2009) As a result, major production houses have slashed budgets and are now not able to employ many of the workers that went on strike. They are now less likely to pick up new programming or take a chance with new writing talent.

“It's probably more difficult to break into Hollywood now, because (the studios) are going to buy less, and they're going to buy from those high-end writers and show-runners that they believe in already, so, there will be (fewer) slots for flyers or new writers. It will be more difficult for that guy who just has a great sample to come in and pitch a show." – Anonymous Writing Agent (Idelson, 2008)

Those high-end writers are now seeing a dramatic decline in fees being paid to them upfront. (LITTLETON, 2009)

Also, since the strike took place during the sweeps months where new original content was airing, many shows were forced to cut their seasons in half, leaving viewers waiting for new episodes of their favorite shows. This lead to dramatic declines in ratings for formerly popular shows resulting in the early cancelation of these shows. (LITTLETON, 2009)

Former WGA executive director John McLean feels that the agreement reached is no good. Stating that the deal was one of the worst deals he’s seen. He also feels that now, even with a deal in place the major conglomerates are now not honoring the deal, rather devising ways around it. McLean says, "I think it is a terrible deal - perhaps the worst deal ever negotiated by the creative guilds." (McNary, Industry Vets Reflect on WGA Strike , 2009 )

What Could Have Prevented Or Softened This Strike

Cynthia Littleton in her article on Variety.com entitled WGA Stike: One Year Later, hits the nail on the head saying, “By many accounts, what largely prevented the WGA and AMPTP from cutting a deal and averting a strike was the lack of communication or relationship-building on both sides in the years leading up to the contract talks. By the time the negotiating teams met across the table, they weren't even speaking the same language.” (LITTLETON, 2009) Effective communication and perhaps having a moderator from the beginning of the contract re-negotiation could have saved the industry billions of dollars and kept the film and television industry healthy and kept the writers happy. Their unwillingness to negotiate properly lead to one of the most devastating collapses the entertainment industry has ever seen.

Another aspect that could have severely lessened the impact of the strike in my opinion would have to held out on a physical strike until the end of the sweeps months allowing more time to better negotiate. The WGA’s reasoning behind placing the strike during the sweeps was due in part because they felt they would have better leverage over the AMPTP once advertising revenue was lost due to lack of new programming. What they didn’t foresee was that the AMPTP would hold out the way that they eventually did. The WGA also did not assume that their strike would lead to lower wages and fewer opportunities as a result of billions of dollars lost to the strike.

Who Benefitted From The Writer’s Strike?

At this time there is no evidence that can rule anyone a winner in this negotiation. The industry and local economies lost billions, thousands of jobs were lost, budgets were slashed as a result. Big studios are more hesitant than ever to take a risk on new programming and talent and many long time previously successful writers are either unemployed or making considerably less money upfront. The .05% in my opinion was not worth the collapse of U.S. entertainment industry.

Works Cited

Idelson, K. (2008, June 3). Writers Face Tough Post-Strike World . Retrieved March 20, 2009, from Variety.com: http://www.variety.com/awardcentral_article/VR1117986813.html?nav=news&categoryid=1985&cs=1

LITTLETON, C. (2009, feb 10). WGA Strike: One Year Later . Retrieved march 2009, from Variety.com: http://www.variety.com/article/VR1117999957.html?categoryid=1066&cs=1

McNary, D. (2009, Feb 27). David Young Defends Writers Strike. Retrieved March 26, 2009, from Variety.com : http://www.variety.com/article/VR1118000684.html?categoryid=1066&cs=1

McNary, D. (2009 , Feb 10). Industry Vets Reflect on WGA Strike . Retrieved March 23, 2009, from Variety.com : http://www.variety.com/article/VR1117999950.html?categoryid=1066&cs=1

McNary, D. (2008 , Feb. 9). WGA, Producers Reach Tenitive Deal . Retrieved March 26, 2009 , from variety.com: http://www.variety.com/index.asp?layout=festivals&jump=story&id=2476&articleid=VR1117980589&cs=1

wgaamerica. (2007, November 2007). Why We Fight . Los Angeles , CA , USA .

Wikipedia. (2008). 2007-2008 Writers Guild of America . Retrieved March 23, 2009, from wikipedia.com: http://en.wikipedia.org/wiki/2007_Writers_Guild_of_America_strike#Background