The Hollywood debate follows the same logic. Writers point out that movies and TV are expanding into new media such as cable, DVD, and the Internet. They want more of the profits from these media. Producers reply that the growing array of media choices is splintering rather than simply expanding the market. Smaller audiences for network TV shows mean lower ad rates.
More movies means fewer tickets sold per movie.
Like free-trade economists, producers argue that there will be lots of profitable transactions for everyone, but only if there isn't lots of profit in each transaction. Writers fall back on the arguments made by fair-trade advocates. If they let the industry move into areas where labor rights are unprotected, writers who are currently protected will lose their leverage in a race to the bottom. To forestall this scenario, they're hustling to unionize writers in animation, demanding payments to writers for the use of their work on the Internet, and blasting the producers for resisting these changes. As for the producers' proposal that writers give up some rights to be paid for reruns, the writers point out since networks can air reruns instead of first-run scripted programs, writers would in effect be lowering the cost of their competition.