The previous comment did most of the work for you. Writers, actors, crew, and generally everyone involved in the entertainment industry does not have a salary gig like office workers. They aren’t working consistently–which has only gotten worse in the streaming era–and thus rely on royalties as part of their total compensation.
So, in summary, they are completely different situations that cannot be directly compared.
I don’t think I’m ignorant of the gig-work nature of these things - I am, by choice, a contractor, but in a different field (engineering services). But my contracts specify that the deliverables are “works for hire” and that the client owns all IP, and I am not entitled to residuals or royalties or any other income from the work I’ve done under such contracts.
I just genuinely don’t know if writers thought that they should be getting more. And if so, why?Because there are plenty of analogous (i.e. IP-generating) jobs that don’t have such arrangements.
This is about who holds the IP. Sometimes, depending on the employer and contract, an engineer will get to share in a patent created in the course of the job. Or might have incentives such as Employee Stock Ownership Plans (ESOPs) or options.
So it’s not true that the IT folks are exclusively paid salary. Many share in the risk as well as the returns of their firms.
Let’s unpack that.
Yes, there are ‘writers for hire’ in licenced tie-in fiction and comics. These authors get a flat advance BUT they still get royalties based on the number of books or comics sold. That is - base payment and then returns based on success if the product.
Film and television writers are compensated by residuals in addition to salary. The studio owns the IP but the creators have a stake. It’s a risk and return sharing relationship with the studio. That’s the standard arrangement.
How is this different from an ESOP or options as an incentive remuneration?
How would an IT employee feel if a firm licenced the IP and then excluded its value from the calculation of ESOPs and options due, or the dividends on the nonvoting shares issued to employees?
I just genuinely don’t know if writers thought that they should be getting more. And if so, why?
What do you mean by “more”, and relative to what? The main complaint from writers are that in recent years the trend has been them all getting paid significantly less. Not just a few percentage points, more like 1-10% of what they used to get.
So, they want to get paid the same as they used to, which is more than currently but not “more” when looked at from a longer time frame.
It’s different with writers, because if their contracts worked like ours did they would have no hope of retiring. So when a fat fish like Suits comes along everyone who has a hand in making it is hoping to swing that either into money or more lucrative work.
That’s the way I’ve come to see it. Actual writers may disagree
There are freelance/gig workers in other industries. Programming has had a massive freelance market for ages. It’s practically unheard of for them to receive royalties, so it seems like you don’t need to rely on royalties.
And writers do have a salary gig in the vast majority of cases. It’s just usually not a long term position. They are hired for the duration of the project, and then need to find something new.
That’s not unique to writers or Hollywood at all. Many people are hired for the duration of a project, including managers, engineers, construction workers and so on. None of them receive royalties.
The previous comment did most of the work for you. Writers, actors, crew, and generally everyone involved in the entertainment industry does not have a salary gig like office workers. They aren’t working consistently–which has only gotten worse in the streaming era–and thus rely on royalties as part of their total compensation.
So, in summary, they are completely different situations that cannot be directly compared.
I don’t think I’m ignorant of the gig-work nature of these things - I am, by choice, a contractor, but in a different field (engineering services). But my contracts specify that the deliverables are “works for hire” and that the client owns all IP, and I am not entitled to residuals or royalties or any other income from the work I’ve done under such contracts.
I just genuinely don’t know if writers thought that they should be getting more. And if so, why?Because there are plenty of analogous (i.e. IP-generating) jobs that don’t have such arrangements.
“Works-for-hire” is exactly the key point here.
This is about who holds the IP. Sometimes, depending on the employer and contract, an engineer will get to share in a patent created in the course of the job. Or might have incentives such as Employee Stock Ownership Plans (ESOPs) or options.
So it’s not true that the IT folks are exclusively paid salary. Many share in the risk as well as the returns of their firms.
Let’s unpack that.
Yes, there are ‘writers for hire’ in licenced tie-in fiction and comics. These authors get a flat advance BUT they still get royalties based on the number of books or comics sold. That is - base payment and then returns based on success if the product.
Film and television writers are compensated by residuals in addition to salary. The studio owns the IP but the creators have a stake. It’s a risk and return sharing relationship with the studio. That’s the standard arrangement.
How is this different from an ESOP or options as an incentive remuneration?
How would an IT employee feel if a firm licenced the IP and then excluded its value from the calculation of ESOPs and options due, or the dividends on the nonvoting shares issued to employees?
What do you mean by “more”, and relative to what? The main complaint from writers are that in recent years the trend has been them all getting paid significantly less. Not just a few percentage points, more like 1-10% of what they used to get.
So, they want to get paid the same as they used to, which is more than currently but not “more” when looked at from a longer time frame.
It’s different with writers, because if their contracts worked like ours did they would have no hope of retiring. So when a fat fish like Suits comes along everyone who has a hand in making it is hoping to swing that either into money or more lucrative work.
That’s the way I’ve come to see it. Actual writers may disagree
There are freelance/gig workers in other industries. Programming has had a massive freelance market for ages. It’s practically unheard of for them to receive royalties, so it seems like you don’t need to rely on royalties.
And writers do have a salary gig in the vast majority of cases. It’s just usually not a long term position. They are hired for the duration of the project, and then need to find something new.
That’s not unique to writers or Hollywood at all. Many people are hired for the duration of a project, including managers, engineers, construction workers and so on. None of them receive royalties.