Cynthia Littleton Business EditorUpcoming contract negotiations between the Writers Guild of America and Hollywood’s biggest employers are expected to include an echo boom of another industrywide conflict from the recent past.The WGA declined to comment, but industry sources say there is growing momentum for the guild to press for big economic gains, piggybacking on the guild’s successful campaign to eliminate packaging fees.
In 2019, the WGA took aim at the long-standing practice of producers paying packaging fees to talent agencies that help assemble TV series and some independent films.The WGA went to war with the largest talent agencies after the guild implemented new rules that barred talent agents who represent WGA members from receiving packaging fees.
Those packaging fees were typically about 3% of a project’s license fee upfront, with the promise of more percentage points flowing in down the road in success.
The WGA’s packaging-fee fight came to a head at a time when the practice was already under pressure due to the changes in the way TV shows are produced and monetized in the streaming era.
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