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Striking Writers, UA Studio Reach Agreement

Cruise Company First To Reach Independent Studio Deal

POSTED: 9:13 am PST January 8, 2008
UPDATED: 9:58 am PST January 8, 2008

"United Artists has lived up to its name. UA and the Writers Guild came together and negotiated seriously. The end result is that we have a deal that will put people back to work," said Patric M. Verrone, president of the Writers Guild of America, West.

United Artists is the independent production unit of Metro-Goldwyn-Mayer Inc., and it plans to make just four to six movies a year. UA is controlled by actor Tom Cruise and his producing partner, Paula Wagner.

The agreement was struck, however, without the blessing of MGM, which had discouraged UA from negotiating independently with the guild, preferring instead to rely on talks led by the Alliance of Motion Picture and Television Producers.

In a statement, MGM officials said the studio "understands the desire of United Artists to resume its business activities, but respectfully disagrees with its decision to sign an interim agreement with the WGA. MGM remains committed to working with AMPTP member companies to reach a fair and reasonable agreement with the WGA that positions everyone in our industry for success in a rapidly changing marketplace."

Details of the agreement were not released, although WGA officials said the pact "addresses the issues important to writers, including new media."

"This agreement is important, unique and makes good business sense for United Artists. In keeping with the philosophy of its original founders, artists who sought to create a studio in which artists and their creative visions could flourish, we are pleased to have reached an agreement with the WGA," said Wagner, UA co-owner and CEO.

The strike began Nov. 5 over a dispute focusing on residual payments to writers for work distributed via the Internet, video iPods, cell phones and other new media.

Negotiations to end the strike broke off Dec. 7 over the WGA's demand to extend union jurisdiction over so-called unscripted series and animated programs and to permit work stoppages when other unions go on strike.

The latest casualty of the WGA strike is the Hollywood Foreign Press Association's Golden Globes ceremony. The HFPA announced on Monday that it was dumping its "traditional" awards show.

Instead of the traditional Globes show featuring a boozy, glitzy dinner party and awards presentation, the winners will be announced in an hourlong news conference at the Beverly Hilton Hotel, the press association said.

A Los Angeles Times report, citing an NBC memo e-mailed to movie studios, said there were plans for other Globe-related shows, including a "Dateline NBC" program with clips and interviews with nominees, and a show covering Globe parties.

The decision came after Screen Actors Guild President Alan Rosenberg announced Friday that the union members appeared to be in "unanimous agreement" that they would not cross the writers' picket line to attend the Golden Globes ceremony, either as award nominees or presenters.

This year's Globe nominees include such A-listers as Angelina Jolie, Denzel Washington, Tom Hanks, Daniel Day-Lewis, George Clooney, Keira Knightley, Cate Blanchett and Johnny Depp. Among the nominated films are "There Will Be Blood," "American Gangster" and "Sweeney Todd." But faced with a potential celebrity vacuum, the association and NBC Universal Chief Executive Jeff Zucker had to devise another approach.

The association will forgo any network payment -- reported to be $5 million -- for the broadcast, said a person close to the show who was not authorized to comment and requested anonymity. But NBC will have exclusive electronic rights to the show and will be able to sell advertising for it, the person said.

Although other TV media won't be given access, print outlets will, according to the agreement between NBC and the association, the person said.

NBC was also in talks with Dick Clark productions, which produces the ceremony, for an hourlong Globes retrospective.

There was no announcement by the association or NBC on regarding further programming.

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