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Monday
Dec172007

The Writers' Strike: A New Development

The Los Angeles Times discusses an interesting development in the Writers Guild of America strike here. Matthew Yglesias offers this analysis: "The TV and movie studios business models are fundamentally all about controlling the channels of distribution -- the very thing the rise of the internet disrupts. But they still have a massive leg-up in the new medium simply because of all the embedded human capital in the form of relationships with the talent.

"They seem to have decided, however, that the dawning of the digital age is mostly a good time to try to claw back compensation from their workforce rather than a time when good relations with their workforce are becoming more important than ever in a world where control of the distribution channels is becoming less and less important."

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