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November 7, 2007

business

Eisner tries to sic writers on Jobs

Posted Nov. 7, ’07, 9:58 AM PT by Dan Moren
Category | Business

Eisner and JobsIt was only a matter of time before the writers’ strike crossed over into the realm of Apple relevance, but it was the unlikely figure of former Disney CEO Michael Eisner who acted as the bridge.

A bridge of jackassery.

In a conversation with everybody’s favorite Fox Business News pundit Neil Cavuto, Eisner said that the writers’ strike (which he termed “stupid”) ought to be aimed not at the studios, but at the real culprit: Steve Jobs.

The studios “make deals with Steve Jobs, who takes them to the cleaners. They make all these kinds of things, and who’s making money? Apple! They should get a piece of Apple. If I was a union, I’d be striking up wherever he is.”
Smooth, Mikey, real smooth.

I just don’t get it. Okay, well I suppose I get it. NBC reputedly tried the same tactic of trying to get a piece of iPod profits and failed miserably. Which, frankly, they should have. The fact is that Apple sold plenty of iPods since before the iTunes Store even existed, and by all accounts the store operates just above break even as it is. Without the iPod, the iTunes Store likely wouldn’t even have come about. It’s the iPod that enables the store, not the other way around. But profiting off of other people’s creations is bread-and-butter for the studios, so I won’t pretend to be shocked that they went down this road.

Eisner, who’s currently involved in setting up his own online video venture that nobody’s ever heard of, says that the money the writers want simply isn’t there, and that writers should wait a few years before demanding a fair cut of the profits. Because I’m sure the same same corporations who’ve shafted writers by giving them a meager cut of $0.04 per DVD sale in a rate established in 1985, will totally be willing to part with their money three years down the road.

He’s right about one thing: this is about the future and, specifically, the future of television. And Apple’s done more to push television into the next phase of its existence than anybody else, including the studios, who’ve had to be dragged kicking and screaming. So don’t try to pawn off blame on Steve Jobs: it’s kind of sad and pathetic.

[hat tip: Jon Seff]


2 Comments

Aaron Izbicki said:

I couldn't agree more. 1st off the studios are playing a game of misdirection even bringing digital downloads up in the press when the real issue that killed the negotiations was DVD residuals.

As a long time member of SAG who still gets DVD residuals I have watched the industry build more and more of a business model on "ancillary" sales. And they don't want to shareany of this income.

1st they claimed that there wasn't enough money and they needed "further study" of the issue. Now that it is clear that they are making money hand over fist in DVD sales they are crying poverty and pointing at online sales as if it is an issue.

The fact is that once the DVD money proved to be a real revenue stream, they built a business model around it and now they really do need it to prop up their numbers. Since when is it the responsibility of the talent that helps make these products possible to have to take an income hit because of business decisions that the studios make. No other industry has this business model with their partners.

If the iPhone had been a flop Apple wouldn't then try to not pay Intel for chips for iMacs. That would be crazy.

The studios also are digging in their heels because this battle has 2 fronts. If they cave to the writers than they are going to have a heck of a time not giving the same to the actors when their contract expires.

November 7, 2007 11:53 AM
Craig Gorsuch said:

What is worth remembering here? The studios (movie, TV, radio, music, etc...) are all producing dreck that no one wants to watch. That's the reason they're losing money.

The execs, of course, being eternal narcissistic teenagers at heart, never look at their own decisions as contributing to the problem, mush less being the problem!

Note to all TV and Movie studios: start making things that I and my family can actually watch and is not purposefully meant to offend my sensibilities!

November 8, 2007 11:23 AM

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