A golden age of independent television produced hits like "Hill Street Blues," "Seinfeld" and "St. Elsewhere," which aired on CBS, ABC and NBC but were owned by studios unconnected to those networks. Government rules known as Fin-Syn, the Financial Interest and Syndication Rules, enforced that separation until they were repealed in the 1990s. Since then, many entertainment companies have aired programs from studios they own, making it harder for independent producers to survive.
Amid a painful, four-year downturn in the entertainment industry, a new group called the American Entertainment Alliance is pushing for legislation to revive a version of Fin-Syn for the streaming age. The proposal would require major companies, including Netflix, Disney, Amazon Prime Video and Skydance, to allocate half of their original content budgets to shows and movies from independent U.S. producers. Supporters argue this would reignite the television market, increase the number of shows made and create more jobs.
The alliance includes a rare coalition of rival talent agencies, including Creative Artists Agency, William Morris Endeavor and the United Talent Agency, along with producers such as Jason Blum, Mark Burnett, Peter Chernin, Ron Howard and Brian Grazer. Bryan Lourd, chief executive of CAA, said that who finances content is the central issue. Research suggests the number of dramas, comedies and limited series has fallen roughly 40 percent compared with four years ago.
Passing the bill through Congress will be difficult. Many streaming companies have large lobbying operations in Washington and are likely to fight it, arguing that they already buy plenty of content from outside studios. Separately, Hollywood has also pressed Congress and President Trump for federal tax credits to bring production back to the United States.
Source: New York Times Business · Summarized by HeadlinesBriefing