Striking Writers Talk to Venture Capitalists

Thanks to reader Debra Cash for pointing out this LA Times story: writers are talking to sources of money to see if they can create their own web site outlets:

At least seven groups, composed of members of the striking Writers Guild of America, are planning to form Internet-based businesses that, if successful, could create an alternative economic model to the one at the heart of the walkout, now in its seventh week.

Three of the groups are working on ventures that would function much like United Artists, the production company created 80 years ago by Charlie Chaplin and other top stars who wanted to break free from the studios.

Oh, this is smart on two levels. At the most basic, writers need to find ways to lessen their dependence on studios. That means going into business and developing their own production outlets for their scripts. Although venture capital firms have shied from pure entertainment plays in the past because of their risk, the money plunked down for YouTube has got them reconsidering. Their business model is fund something to get it going and then either take it public or sell it off to make their profit. And theater has often gone to wealthy individuals to bankroll shows on Broadway and other places. When the backers have enough money, they don't miss it much if it doesn't pan out, and, oh, the parties they get invited to. So now is the time for all writers to be considering how they can take what they have and make a "product" out of it. For the purists among us, don't forget that at one time, virtually all art and music was possible because of the generosity of patrons.

The other reason this is a smart move is purely negotiation. Studios stall on talks when they think they will get more leverage that way. But when they see that someone might be making money without their getting a cut, the situation becomes a powerful inducement for a rapprochement.