I laughed so hard when I watched this -- Harlan Ellison is very funny. But it's true enough that writers are often not treated as professionals in their own right, and I've also heard many a writer complain that they are underpaid.
Who's to blame? While amateur writers may, as Malaysians say, "spoil the market", they also have less leverage. An established writer like Ellison can tell Warner Bros to go jump in the lake because he's well-known enough that Warner Bros might actually turn around and try to negotiate in order to gain the rights to his work; and if not, somebody else who is willing to pay an appropriate fee will likely eventually come along.
But a little-known writer is bound to be excited when approached by such a company as Warner Bros, and he knows -- or at least, he thinks -- that if he doesn't grab this opportunity, another company of this stature might not come along for a long, looooong time. Put it down to a lack of faith in himself, a desire for a 'shortcut' to get his name out there quickly, or perhaps just a very human tendency to grab whatever you can for fear you may never get a better deal (a bird in the hand is worth two in the bush, remember?). He may know he is being shortchanged, but he may choose to discount that due to the other factors mentioned above, and console himself with the thought that at least this will look impressive on his portfolio or resumé.
I once attended an interview at a publishing company where I was informed that the editorial staff frequently stay overnight in order to meet tight deadlines, and "Do you have any problem with that kind of schedule?" Then I discovered that they were not willing to pay above RM2,500. Leaving aside my four years of writing experience, the fact that the job would require such long hours -- even weekends might need to be sacrificed, I was told -- caused me to feel that the remuneration offered was inadequate.
But such things are so subjective; what I consider inadequate, another job applicant might consider acceptable, or even fair. Isn't this what a market-driven economy is all about?

