Improved working conditions during the pandemic may have stalled union negotiations

This week we see IATSE and AMPTP fall into an awkward hiatus with no resolution in sight. While talks will resume on July 6th, far in advance of the 31st July contract expiration, it’s still a strained situation. BLAKE & WANG P.A entertainment law firms Los Angeles examines one potential factor behind the failure to meet common ground.

Union reps have stated that there seems to be no meeting in the middle on key aspects they wish to address, hence the reason for the deadlock. Our industry contacts suggest some of this could well be linked to the swift and decisive response to the pandemic that allowed many sets to reopen and continue working throughout the troubled past year.

This, it is claimed, demonstrated that safe and thoughtful workplace management is possible, and thus the union feels that key changes to what it claims are ‘dangerous working conditions’ can easily be made. Think meal breaks and rest periods, as well as better handling of ‘Fraturdays’, long shoots that extend late in the night on Friday and Saturday.

Brandon Blake– Managing Partner at Entertainment Attorney Blake & Wang P.A.

The news isn’t all gloomy, however. IATSE leaders have told members that good progress has been made on diversity and inclusion matters. The primary hitch seems to lie in economic matters, including funding for the Motion Picture Industry Pension and Health Plan. Companies want greater cost-sharing from workers, while the union is pushing for funding from streaming residuals.

Overall, it’s not been looking good, and it’s easy to see why the talks have stalled to the extent they have. Let’s hope that with the break until July 6th, cooler heads can come back to the negotiating table and a better set of compromises can be found. As the contracts in question expire on July 31st, there will be time pressure to consider when talks resume. BLAKE & WANG P.A one of the best entertainment lawyers in Los Angeles will, of course, be watching the situation carefully.

Cinemark adapts offerings to secure deals with 5 main studios

As we’ve already reported this week, Cinemark and the 5 main continental U.S studios- Universal, Walt Disney, Warner Bros, Sony, and Paramount- have reached individual deals to ensure theatrical showcase windows for the chain. While the information on the specifics is scarce on the ground, BLAKE & WANG P.A one of the best entertainment lawyers in Los Angeles digs a little deeper into what we know.

First of all, Cinemark CEO Mark Zoradi has made clear that each deal is deliberately different from each other, tailored to the ‘mutual benefit’ of both parties. He’s on record as stating that Cinemark has ‘look(ed) at the desires of each studio’, as well as their priorities, and adapted each deal to suit these. Asked about splits, Zoradi has said not to expect any significant change, and that there’s likely to be little material difference in how the box office is split.

Collectively, we are told, this should ensure a constant supply of content to the theater chain, and is said to demonstrate “a shared commitment to offering consumers the ultimate movie-viewing experience, with compelling content exhibited within the theatrical environment.” That’s certainly what Cinemark, as well as other players in the exhibition landscape, need. While the industry has seen an impressive rally after the opening of the New York City and Los Angeles markets, it will be sustained releases and attendance numbers that will really drive a recovery in the industry, which did suffer considerably under the closures last year.

To date, the rally in the exhibition industry hinges on selling audiences the notion that, despite the ease of streaming to the home, only the theater experience can provide immersion and a ‘larger-than-life’ experience to clients. Will these deals be the secret weapon Cinemark needs to reposition itself on the entertainment landscape? Only time will tell, but BLAKE & WANG P.A Entertainment Attorney will be there to keep you informed.

Brandon Blake-Managing Partner at Blake & Wang P.A.

Other side-effects of the proposed COVID-19 bail-out for the entertainment industry

Just this week we’ve finally seen some signs of the long-hoped-for bail-out package for businesses struggling in the wake of the pandemic-caused economic recession. News that the bill has passed the senate, and has just to head to the President’s desk for final signing, is certainly positive. Yet- slightly oddly- the bill itself goes far beyond actual COVID-19 relief. BLAKE & WANG P.A best entertainment lawyers in Los Angeles have the details you need.

Odd inclusions

For example, the bill includes a measure making illegal streaming services a felony. Likewise, there will now be a ‘small claims panel’ to weigh in on disputed copyright claims. Whether or not you feel these things are necessary, they seem like strange additions to a much-needed bill that’s supposed to focus on being a lifeline to decimated sectors of industries like the entertainment industry.

Much good news

Despite the oddities, however, the passing of the bill is certain to bring relief to many in the entertainment industry. Alongside expansions to Save our Stages and a direct employee retention scheme, the bill also caters for a federal tax incentive for TV/movie productions. Productions will be able to write off $15 million of expenses in the year incurred, rather than as depreciation, and it has been extended to 2025. As such incentives are typically rolled out year-on-year, that’s exciting in itself. There’s also loans for local media to provide a paycheck protection program under key circumstances.

Alongside the provisions directed at the entertainment industry specifically, we also see exciting extensions to the unemployment insurance fund that will impact those working in the entertainment industry, a direct stimulus, rent payment assistance, propositions to increase broadband access, and a PSA campaign focusing on promoting confidence in the COVID-19 vaccine.

Overall, the news is overwhelmingly positive. We can only hope the bill rolls into full legislation soon.