A coalition hopes to build on momentum behind a U.S. tax incentive to restore a version of 'fin-syn' rules It doesn’t mean much to anyone under 45, but for older folks in Hollywood, the term “fin-syn” evokes a golden age of mansions, yacht parties and cutting-edge TV. The FCC’s “financial interest and syndication” rules forced TV networks to buy shows from superproducers like Norman Lear and Grant Tinker rather than making them in-house. And ever since the FCC did away with fin-syn 30 years ago, producers and agents have been longing for its return.
Now, with momentum building behind a U.S. film incentive, they are hoping the moment is ripe to recreate fin-syn for the streaming era. They argue it would bring a jolt of creativity and a spirit of enterprise to a business stuck in a creative slump. The major agencies — WME, CAA and UTA — announced last week that they are forming a coalition with production companies including Imagine Entertainment and Legendary to push for legislation that would force streamers to buy at least 50% of their original content from independent producers.
The legislation would also limit the length of licensing terms, reviving secondary markets that have largely withered away. Their message is that Hollywood ails not only from runaway production, but also from a consolidated ecosystem that limits creativity and makes it harder for producers, writers and actors to profit from their labor. They’ve got incredible pricing power,” saying the streamers are ordering 30-40% fewer hours of programming than they were a few years ago.
Getting the idea through Congress will be an uphill battle, and will face adamant opposition from Netflix, Amazon and the other streaming platforms. The effort also has the potential to sow division within an industry that has united behind the goal of passing the first-ever federal film incentive. Supporters wanted to some version of their ideas into the tax credit bill that was introduced to much fanfare in September.
But while they had some positive meetings, they were ultimately rebuffed. They are now aiming for 2027, when Democrats are expected to take control of at least one of the houses of Congress. Laura Friedman, a co-author of the tax incentive as well as a former producer, said in a statement that she sympathizes with producers’ concerns about industry consolidation and the threat to diverse voices in entertainment.
The Streaming Innovation Alliance, which includes Netflix and other streamers, issued a statement on Thursday calling the proposal a package of “blunt government mandates” that would “only dampen production and discourage creative risk-taking.” The Federal Communications Commission adopted the fin-syn rules in 1970, when there were only three TV networks. The rules prevented networks from owning syndication rights in their shows, and later, from owning shows that aired in primetime. The rules are credited with leading to an era of groundbreaking TV, including “All in the Family,” “The Mary Tyler Moore Show” and “The Cosby Show.” The repeal of the rules in the mid-90s spurred a wave of vertical integration, as Disney acquired Capital Cities/ABC and Viacom acquired CBS.
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