Entertain Yourselves

It seems that the WGA is going on strike. So what?

Frankly, I possess a weak understanding of the economics of the entertainment industry, but from what I've been able to observe, financiers, producers, writers, and actors all assume that profits will keep growing at a steady rate as the economy in general grows. If the growth stops, there's something wrong. But isn't it possible that DVD sales could keep going up for a period as people built their libraries, and then plateau? If this is the case, then slowing growth isn't anything to get alarmed about. Besides, can't they just make cheaper pictures?

As far as TV goes, maybe people don't watch as much TV as they used to. Maybe people go online for entertainment. Anything could be used as a substitute for TV, from social networking sites to YouTube to craigslist to message boards. Reality TV substitutes for scripted TV. So, what exactly do we need unionized writers for? What do we need producers for? What do we need studios for? If anyone can pick up a camera, create, promote, and distribute a movie or a show, what do we need Hollywood for?

Of course, most people will point out that most online content sucks compared to Hollywood fare, and also point out that as major Hollywood studios produce content for the web, there's not much of a distinction between old media and new media. What I don't get is the collective bargaining approach to making entertainment. If you make something that Joe Blow would have a tough time making - say, an automobile - then you can go on strike and the corporation that employs you as well as the public will have a tough time replacing you. But if you make entertainment, then couldn't people very easily find a substitute for you?

We could make like most other industries and offshore it, get content from overseas. Would it really be so bad if we watched foreign films that were subtitled for a year, or a decade? Would the world or this culture or our economy really be that worse off? Basically, our culture can be divided into two camps - those who will watch material from overseas, and those who watch a lot of reality programming and/or repeats of old shows. New scripted American content needn't figure into the equation.

The logic of a strike implies that there's something exclusive or superior to what Hollywood creates. Hollywood created "superior" fare in part b/c of the tightly-knit social network of nepotism and reputation that keeps things running relatively smoothly. They also had a monopoly on equipment, sets, and funding. But now, everybody else can get in on the entertainment game. More importantly, everyone can form and maintain the social networks needed to produce the collaborative arts of film and TV.

Hollywood's promotional muscle is overrated. Big advertising budgets are capable of spiking the sales of a product at first, but the quality of the product determines its long-term profitability in the long-tail economy. Initial promotion matters with products that require constant streams of funding to be produced, like material objects or a high-budget TV series with unionized workers. It doesn't matter with a low-budget 30 ep web series that catches on via word of mouth or based on the existing reputation of the artists involved.

Producers, studios, and big-name stars had writers over a barrel for decades. Ultimately, this might teach them that its the whole system that isn't needed by the public. What people really want is a good story, drama, characters they can relate to. Individuals (be they producers, writers, directors, actors) who can create those stories will always be of value. To me, this all seems like what the music industry went through post-Napster. Their economic models predict growth, but that's just b/c they assumed an exclusivity that no longer exists. Inflexible unions and collective bargaining are relics of a less open marketplace. This is a golden opportunity for non-unionized entertainers (i.e. everyone with a camera, a laptop, and an ego) to become semi-famous, make a few bucks, and have some fun.