Friday, November 2, 2007

Hollywood Strike Coming Over Deadlock Over and Online Sales

Hollywood screenwriters and studios are still deadlocked, and talks are off, so Writers Guild of America could call for a strike anytime now. WGA says what it has said all along: DVD residuals for writers are stingy, have opposed a producer plan to extend that rate to digital sales. “The companies refused to continue to bargain unless we agree that the hated DVD formula be extended to Internet downloads,” the WGA statement said. Studios meanwhile have maintained that online is experiment, and they need to invest, and that higher residuals on DVDs and Internet downloads would stifle growth at a time of rising production costs, tighter profit margins and piracy threats. As it is now, writers get 1.8 percent of just 20 percent of wholesale DVD revenue. That formula translates to about $64,800 flowing to writers of a DVD that sells 1 million copies. The WGA would like to see that formula doubled, or more, when it comes to the selling of Internet downloads—even if, right now, sales of such are paltry when compared to DVDs. Also, for online ad-supported video, the WGA wants a piece of the ad-supported market and the AMPTP is balking.
http://www.paidcontent.org/entry/419-wgas-strike-possibly-coming-deadlocked-overdvd-and-online-residuals-eff/

http://www.reuters.com/article/newsOne/idUSN3135811720071101

http://www.hollywoodreporter.com/hr/content_display/news/e3ifabb1526bf6484228d8028cdf3ecd05b

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