This headline probably will be usable for years as the various parties in the entertainment food chain squabble over who gets what when. As guild contracts come up for renewal over thr next two years, compensation for digital media revenue looms as one of the hot points. Mike McNulty, national director of communications for SAG, told Reuters: “There’s a lot of gray. The real crux of the thing is which formula the studios are going to pay under.” The Writers Guild contracts expire next year with Screen Actors Guild and Directors Guild following in 2008. The current contracts are based on pre-broadband and mass mobile content technology. One popular argument by the studios and networks: streaming is promotional. But guild execs say that shouldn’t matter. Charles Slocum, assistant executive director, WGA: “Just by calling something promotional doesn’t mean there shouldn’t be residuals.” Downloads raise a different issue as the studios and networks push the older and lower home video rate.
Hollywood Reporter: One current pay drama looks to have a longer run than NBCU’s just-canceled “Kidnapping.” The National Labor Relations Board is siding with NBCU in a battle with the WGA. NBCU argues that it shouldn’t be forced to pay residuals for strictly promotional webisodes and that the guild improperly encouraged writers not to participate. The WGA insists that NBCU pays residuals. So far, the NLRB is siding with NBCU. A hearing is expected next month. NBCU: “We are pleased that the National Labor Relations Board has filed a complaint against the WGA supporting our position. We look forward to continuing to be able to create and produce Internet content to promote and supplement our programming.” The WGA denies any unfair labor practice.
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