“The volatile issue of how writers, directors and actors are to be paid when TV shows are downloaded is heating up again, with their unions accusing the ABC network of violating collective bargaining agreements,” Richard Verrier reports for The Los Angeles Times. “The Screen Actors Guild, the Writers Guild of America, West, and the Directors Guild of America all issued statements this week criticizing the Walt Disney Co.-owned network for deciding to pay residuals on TV episode sales to video iPod users under the same payment formula for DVD sales.”
Verrier continues, “That interpretation has angered guild leaders, who contend that Hollywood talent is getting shortchanged by an antiquated formula. They said networks should pay a more generous rate when consumers purchase shows online. The union leaders threatened to file claims. Under the current DVD formula, producers retain 80% of home video revenue to cover manufacturing and other costs, and actors, writers and directors receive a cut from the remaining 20%… Labor leaders don’t want to repeat what many view as a big mistake when negotiators in the early 1980s agreed to the video formula. At the time, studios contended that the rate was crucial to getting the then-fledgling videocassette business off the ground. The guilds then watched as VHS, and later DVDs, mushroomed into a multibillion-dollar-a-year, highly profitable business for the studios.”
Full article here.
Just a note that the sales are actually to iTunes Music Store (iTMS) users, not “video iPod users” as written in the first paragraph. iTMS TV show watchers might happen to own a 5G iPod or they might not. Of course, you don’t even need an iPod to watch the shows you purchase from Apple’s iTunes Music Store (a store which grows increasingly in need of a new name with each passing day, by the way), you can watch them on your computer or on your TV if you hook it up your Mac or Windows PC. As for the issue at hand, hopefully all who contribute value to the process will be fairly compensated.
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Related article:
Hollywood unions want slice of Apple’s video pie – October 14, 2005
you are exacly right Pino. It sounds mean, and unjust… but people don’t understand that they would be better off. There are so many examples in history of how the strong hand of government ruins societys, but nobody cares to listen.
Liberals are all knee-jerk reactionary morons who can’t look 2 feet past their own nose.
I’m normally no great fan of unions, but even this hardcore Free Marketeer will say that these guys have a valid claim to some share of the additional studio revenues that flow from downloads.
“Auto workers getting paid for used car sales when they’ve already been paid for the work” doesn’t quite hold up as an argument for me. Ford doesn’t get paid for the sale of a used Focus. But, BIg Giant Studio *does” get paid new money for delivering a TV show or movie in a different format or method of delivery. The parties may disagree about the percentage (as they do here), but it seems only fair that Big Giant Studio share *some* of that added revenue with the people who produced the content for them, especially since the precedent of that sharing has been established in other areas.
Apple’s iTunes Music Store (a store which grows increasingly in need of a new name with each passing day, by the way)
iTMS = iTunes Media Store. There. Problem solved.
I don’t like “iTunes Media Store”. The term “media” is too dry. It sounds like something Microsoft would come up with.
My guess? They’ll eventually drop “Music” and just call it the “iTunes Store”. Hell, most mainstream consumers just say “iTunes” to refer to the store anyway. The ads on the TV networks reminding you to buy their shows usually just refer to the store as “iTunes”.
We now return you to “Liberals vs. Conservatives: Death Match”, already in progress…
Examples of ‘knee jerk’:
1. There are poor people.
“oh wow, we need to give them money… as much as we can. They need to survive don’t they? After all, they have 3 kids to take care of, and they have to pay rent!”
How a conservative sees the problem:
2. You give a man a fish, and he eats for a day. You teach a man to fish, and you feed him for life.
“oh wow, we need to find a way to get them jobs. They need to survive, but they also need to be self sufficient and personally responsible. If they have 3 kids we need to make sure that they can have a good job and be able to teach those kids the value of a honest days work, which will attempt to stop the cycle. and by the way… don’t let those morons pay rent! They need to purchase a house, and pay off a mortgage. Ownership is key, not paying $500/month and having nothing to show for it.”
db – You recommending others take economics is the height of irony. Did you just read Ayn Rand or maybe the Libertarian party platform or do you really just believe that corporations are looking out for the good of the people? Either way you’re two dimensional perspective of the world does not reflect reality. All you need do is actually read and understand the history of the USA to realize that what you’re advocating is rubbish. The playing field is not level, never has been never will be. Is there a perfect system? No. The question is always to look for what is equitable and best for society in both the near term and the long run.
Communism doesn’t work as it ignores the inherent greed and power lust of the individual and Libertarianism (read unchecked capitalism) doesn’t work as it unquestionably celebrates greed and power lust. Thus the need for rules, regulations and even unions to bring about just solutions to issues such as who gets what from the profits on online distributed media.
Apple is positioning Front Row to be a replacement for iTunes Music Store, at least for the video side of things. In a future update, you’ll be able to purchase content directly from Front Row.
Unions whining. Shocker.
Actually, I think you’ll find the reason the US auto industry went down the tubes is that the products, whilst having a low sticker price in comparison to Europe, are – pardon my French – shit (and I’m being charitable).
Cheap plasticky interiors, suspension that was developed in the Fifties, unbelievably inefficient engines that have completely ignored the multi-valve revolution, quality control that sucks.
Hey other other Mark…parts are being made all over the world, and what you see in a Ford might be the same as you see in a Mazda.
However, the billions that Ford pays to retired workers every year (some in excess of $100,000 in payment and benefits annually) is particularly draining. Not that Ford hasn’t done a whole slurry of other problems, but the unions have definitely contributed to the downfall.
Whoops, the first two paragraphs in my last post are supposed to be in quotes from Other Other Mark…
ajg,
I never once said that corporations are looking out for the good of people. Corporations are greedy, and thank God! The number one goal of business is to have success, survive, and make money. This is how it should be, and this is what makes our society prosper. This success is the means to the end. The ‘end’ is a society where the majority is living in good conditions with a high quality of life.
You point me to the history of the United States… how would you say that we have come to this period of wealth in our country? Socialism? Communism?
our economy is designed to make money, not jobs, and that it is doing well, especially for the top 1%. The middle class is shrinking, when it’s gone, the whole thing collapses, not fun. GM and Ford’s problems stem from the fact that they forgot how to innovate car production, and instead fixated on their ‘banking business’, i.e. fast, easy credit via GM financing, and Ford Credit. why mention only the union workers retirement costs without a word on Golden Parachutes for ex-excutives?
“Apple is positioning Front Row to be a replacement for iTunes Music Store, at least for the video side of things. In a future update, you’ll be able to purchase content directly from Front Row.”
Haha…Sounds nice but i can’t imagine entering my iTMS password with that silly little Apple Remote.
god made man to serve the economy.
it’s interesting to skim the opposing posts re the unions. in the blue corner we have a bunch of folks who say that greed is good (in corporations) and that it further breeds success. and in the red corner we have a bunch of folks who say fighting for more money (which is in itself greed) is wholly justified and good.
therefore, although they are saying different things, they are in fact agreeing (greed is progress).
there we go, everyone’s on the same side. isn’t that nice
MW:soon – soon, all arguments will be made this way
What I don’t understand is royalties. If I work for a highway construction company why shouldn’t I continue to be paid by the drivers using that road. That’s the same as a actor getting paid each time a movie is shown. There are many examples one could use.
Actors were well remunerated when they made the move, save your money make another film. Don’t expect to be paid over and over again for the same work. Same goes for the movie and music houses as well.
Personally, because of the movie and music industry attitude I’ve quit going to the movies and purchasing music. For my entertainment and enjoyment I’m spending my disposable money in other areas.
Bubba, that’s because there’s only one road which people share.
if you make a movie and only ever sell one dvd which gets passed around from person to person you only get one payment then too.
if you sell 1000 copies of your movie, you would expect each of the 1000 purchasers to pay the same, even though you already made to movie – yes?
now all you need to do is extend the ‘me the movie maker’ to ‘us the movie makers’ as no major movie is made by only one person.
i know i have simplified it but that’s it in principle
MW : shown