Chapter 309

Los Angeles, Malibu Point, Pointe Dume.

Charles and his mother Evelyn came to check out their newly purchased mansion, which covered 2 acres with a living space of 950 square meters.

"This place is nice, quite peaceful," Evelyn said, her taste had improved greatly, and she had no objections to Charles investing in some real estate properties.

"I also bought a beachfront villa near Little Dume Beach on the east side, a two-story glass villa with a private beach right at the front door, 870 square meters," Charles said as he pointed in that direction. "You know, if you don't like Beverly Hills, you can stay here."

"Aren't house prices dropping? Why are you buying now?" Evelyn, who had been living in the affluent area of Bel Air near the ETA headquarters, only a few minutes' drive away, asked.

"Not too expensive, they've been dropping for a few months, and waterfront luxury homes don't drop much. Because the seller urgently needed cash, I paid $15 million in cash for these two houses," Charles explained.

"Alright, I'll come here to stay on weekends; it's indeed quieter," Evelyn said, forming a favorable impression of Pointe Dume.

Actually, Evelyn had also bought three properties in recent years, but unlike Charles, who often paid tens of millions in cash, Evelyn loved old houses with historical feel, which she would then renovate in her own style, whereas Charles preferred modern architecture, especially glass and stone styles.

"Mom, I just can't understand how you spent $2 million on that big wooden house in Simi Valley," Charles said, perplexed about some stones and wood materials.

Evelyn sighed, "Charles, you know, it's been just over a year, and guess how much my place is worth now? $4 million; someone offered me $4 million to buy that villa!

Forget it, I guess if you don't like it, you won't like it no matter what. Your mother personally supervised the renovation to match the style with the surrounding rocks and tree scenery."

In the afternoon, Charles enjoyed afternoon tea in Malibu with his mother.

"Isn't your company facing a lot of debt crises among its employees?" Charles asked.

Evelyn nodded, "Directors and actors are relatively better off; many screenwriters are indeed having issues!"

"This year, the Producers Guild and the Writers Guild's agreements are expiring," Charles said, sipping his coffee. "Economic recession, rising unemployment, the writers will likely make a move."

Evelyn laughed, "The Writers Guilds on both coasts in Hollywood now have over registered writers; most have low incomes and many are unemployed. Even so, 40% of the writers hired by your major film companies are non-union members. Now, many writers are demanding increased shares from the Internet and new media, as well as higher DVD royalty agreements."

The Writers Guilds on both coasts combined cover about 55% of the nation's employed writers, so there definitely was power.

Hollywood film companies liked hiring non-union members for cost-saving and easier management.

Charles tapped the table, remembering the Hollywood writers' large strike from late 2007 to early 2008.

"The Writers Guild has gone on strike six times now, the biggest being the 1988 strike for VCD and videotape share profits!" Charles shook his head, remembering when the Writers Guild covered over 90% of working writers.

"The DVD profits are highly valued by the Producers Alliance. For the Writers Guild to increase their actual profits here is like taking a bite from the meat held by the Producers Alliance," not just Capet Pictures, all film companies were preparing ahead.

Many projects needed to complete their scripts quickly to avoid disruptions from the likely writers' strike.

After all, a lot of big budget movies and popular TV shows used star union writers, who would certainly support the strike.

"Actually, it's inevitable; the increasing use of non-union writers by film companies is leaving more union writers unemployed. The income disparity within the union is enormous too. The average annual income for a writer is $60,000, yet 80% of writers earn less than $40,000 annually. Ten percent earn relatively more, and 1% are the top earners, with annual incomes ranging from $300,000 to $500,000."

Evelyn was well aware of the stalemated negotiations between the Writers Guild and the Producers Alliance.

Charles merely smiled; currently, it was Writers Guild versus Producers Alliance. In the future, it would be Writers Guild against talent agencies and the Artists' Manager Association.

"What about Capet Pictures? Capet is now recognized as one of Hollywood's Major Seven," Evelyn always supported her son wholeheartedly. "You should get the scripts for upcoming projects ready."

Charles nodded, "Don't worry, I know what to do!"

"However, Capet Pictures, Capet Television has quite a few projects in the works, including movies, TV shows, and reality shows. Not sure if we can handle it all."

Especially TV shows, which require longer use of writers, isn't predictable.

Capet Television's long-running series produced for USA Network, ABC, and CBS had already gained significant reputation.

"Alright, but Capet Entertainment can't match the number of programs produced by the other six majors. The Producers Alliance will undoubtedly focus on the major six, and so will the Writers Guild," Evelyn reminded.

"Relax, it's just labor agreements; they always get signed eventually. Hollywood doesn't value writers as much as Europe and Japan, there's always a way!"

The Hollywood Producers Alliance's main targets were the three major unions - the Directors Guild, the Actors Guild, and the Writers Guild.

Perhaps Charles' Capet Entertainment would need to hire more non-union writers for projects, at least increasing the proportion of non-union members in their writing teams.

As a capital side, unions are really a pain!

*****

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