How To Break The Hollywood Writers StrikeThe 1.5 Percent Solution
source: http://www.techcrunch.com/2007/11/05/how-to-break-the-hollywood-writers-strikethe-15-perce...
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It may be hard to sympathize with the TV and movie writers on strike. As the New York Times describes it, instead of hard hats and work boots, the people on the pickets had arty glasses and fancy scarves. But there are some serious issues at stake in this strike, particularly how the people who make TV shows will be compensated for the use of that material online. This actually is important because if Hollywood gets it right, it could set a precedent for all Web video.
Currently, the Writers Guild of America wants a flat 2.5 percent of all gross profits (as defined by Hollywood accounting) for video shown on the Web, over mobile networks, or any future unspecified digital delivery networks. The producers want to keep the current rules, which give writers nothing for ad-supported video streams and 1.2 to 2.5 percent for videos that consumers actually pay for (whether downloads or streams). The producers are hiding behind the fact that the business model for Web video is still unknown in order to get out of paying the writers much of anything.
But if one thing is becoming clear it is that ad-supported video could be a bigger opportunity than paid downloads (Amazon, iTunes, and Netflix notwithstanding). There is nothing stopping the studios from negotiating to give the writers a percentage of future profits, even if they are difficult to estimate. If no profits are generated, then the studios wont have to payout anything. But if the Hollywood bosses figure out how to make a killing on the Web, then the writers (and actors, directors, and other contributors) should get a small cut.
Currently, the Writers Guild of America wants a flat 2.5 percent of all gross profits (as defined by Hollywood accounting) for video shown on the Web, over mobile networks, or any future unspecified digital delivery networks. The producers want to keep the current rules, which give writers nothing for ad-supported video streams and 1.2 to 2.5 percent for videos that consumers actually pay for (whether downloads or streams). The producers are hiding behind the fact that the business model for Web video is still unknown in order to get out of paying the writers much of anything.
But if one thing is becoming clear it is that ad-supported video could be a bigger opportunity than paid downloads (Amazon, iTunes, and Netflix notwithstanding). There is nothing stopping the studios from negotiating to give the writers a percentage of future profits, even if they are difficult to estimate. If no profits are generated, then the studios wont have to payout anything. But if the Hollywood bosses figure out how to make a killing on the Web, then the writers (and actors, directors, and other contributors) should get a small cut.
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- groups:
- Writers' Guild Strike 2007
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- tags:
- Writers' Guild Strike 2007, New Media, Online Video, WGA, 1 more
