A Web Site’s Fumble Points Up the Challenges of Mixing Old and New

It seemed like the perfect mix of Hollywood glamour, Internet excitement and the current craze for real-life stars. On Tuesday, a group of industry and Internet heavy-hitters announced the launch of an innovative Web site that would allow anyone to bid for roles in a feature movie.

The site, called “Who Wants to Be a Movie Star,” was announced with great fanfare by executives at Blockbuster, the William Morris Agency and Yahoo Auctions.

But within a few hours of their announcement, the California labor commissioner informed them that auctioning off employment to the highest bidder was illegal. The labor office demanded that the site either be taken down or restructured in a way that would not require money in exchange for employment, a violation of the state’s labor code.

It was an embarrassing oversight, according to those involved in creating the Web site--and a cautionary tale for those venturing into the unknown terrain of the Internet. It comes at a time when many Hollywood insiders are hoping to use the vast reach of the Internet to sell their films as well as discover new talent.

“No one was using their head on this,” said one source close to the production.

A day after their much-ballyhooed launch at the Peninsula Hotel in Beverly Hills, the site’s founders were regrouping, trying to figure out a way to continue with their Web site and comply with labor laws.

“Outside counsels did look at this, and they said it was OK,” said Rich Godwin, brand manager for Yahoo Auctions. “We saw this as being an auction, not an application [for a job]. It’s kind of like the new economy versus the old economy, and this rule was written 50 years ago. I think this might be looked at with fresher eyes later. But we wanted a resolution so that we could go in and get this going.”

After a day of negotiations, the site’s lawyers and the labor commissioner came to an agreement. Instead of auctioning off the roles directly to a potential star of the movie, they will be auctioned off through “sponsors.” The sponsors who win the auction will then get credit in the film and select the person for the role.

“They have made their modifications, which appear to bring [the site] into compliance,” said Dean Fryer, spokesman for the state labor commissioner. “You cannot give someone money and have them bid on the position. It’s their responsibility to make sure this stays in compliance. If any violations are brought to our attention, we will proceed with enforcing the labor code.”

There is no way for the labor commissioner to know if those sponsors were hired by the wannabe stars of the movie. “We make it clear that it’s not allowed. The [labor commissioner] will probably be watching to make sure the rules are in place,” Godwin said.

The Web site ran afoul not only of the labor commissioner, but also the Screen Actors Guild. Already in the midst of a bitter strike involving actors in commercials, leaders at SAG are not happy about the “movie star” site taking opportunities away from professional actors.

“We told them we thought this was a horrendous idea and something that in no way, shape or form could we ever support,” said Greg Krizman, spokesman for the Screen Actors Guild. “This idea was roundly dissed on our part.”

The 450 bids that had come in by Wednesday were canceled when the new site was launched. (The new site will keep the same Web name.) Before the original site was closed, the lead-role bid was up to $30,000.

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The bidding, which runs through July 17, is for 14 on-screen parts, and as many as seven behind-the-scenes roles, including executive producer or assistant to the director. The untitled film will be produced by Dan Hassid (“Sugartown”), directed by Tony Markes (“Welcome to Hollywood”) and written by Adam Rifkin (“Detroit Rock City”).

The backers of the “Who Wants to Be a Movie Star” site say it was born out of frustration with the way movies are made in Hollywood. Increasingly, they say, to receive financing for a film, producers must have the movie’s cast lined up with big-name actors.

“We were trying to figure out a way to do something outside the box and [find] an interesting way to change the dynamics [of filmmaking],” Hassid said at Tuesday’s launching in Beverly Hills. “This was one way for some of us to have control.”

In addition, the filmmakers and financiers could capitalize on the craze for reality-based TV shows like “Survivor” and the game show “Who Wants to Be a Millionaire.” Referring to “Survivor,” Greg Creel, director of acquisitions for Blockbuster, said: “It’s not people starving and eating rats, but the timing couldn’t be better.”

Once the winners are selected, they will meet in Los Angeles with the filmmakers. Rifkin will write the movie based on the personalities of the people who land the roles--keeping it as close to reality as possible.

“I wouldn’t yank someone from a gas station in Iowa to play Shakespeare,” said Hassid. “We will design a story around who people are.”

Once the film is completed, Cassian Elwes, vice president of independent film at William Morris, will handle the distribution negotiations. Blockbuster video signed on with exclusive video rights and will pay part of the costs for theatrical publicity and advertising.

Yahoo Auctions has more than 2.5 million listings in 16 countries and has access to parent company Yahoo’s global audience of 145 million people a month. The site does not charge a commission to participate in the auctions.

Hassid said the site isn’t trying to cause problems but find a way to integrate new technology into the traditional ways of doing things in Hollywood.

“It is not our intention to be the rebel pirates,” said Hassid. “Some of the kids who are not known today may be the next generation of stars.”