New Media Still a Sticking Point for SAG

The Screen Actors Guild has rejected the latest (and “final”) offer from the Hollywood studios, and new media is once again at the center of the impasse.

SAG released a statement explaining its position:

“In the six months since the Directors Guild of America reached a deal with the AMPTP, the landscape in digital media has dramatically shifted. The seven global conglomerates that own the motion picture studios and television networks are so confident in digital media prospects, that they are putting up huge dollars to fast track their technology deals.”

And the big sticking point is, what else? Money, specifically residuals from web shows.

“The AMPTP’s recent offer to SAG doesn’t include residuals for programs made for new media and streamed again on ad-supported new media platforms. So a program originally made for ABC.com could be available for re-viewing on ABC.com, or any other ad-supported Internet outlet, as often as possible and forever with no residuals, no matter how much money is generated or how many times it is shown.”

The Alliance of Motion Picture and Television Producers (AMPTP) fired back with its own statement:

“Today, SAG’s chief negotiator said he could not accept AMPTP’s offer because the digital media “landscape has dramatically shifted in the six months since the DGA” reached its deal. This statement is not just factually untrue; it ignores the truly seismic shifts we have all seen over the last six months in the rapidly deteriorating economy, the worsening credit crisis, and the skyrocketing price of energy.”

Each side has a point. Online is playing an increasingly important role for networks and studios, with services like Hulu gaining in popularity, Netflix streaming some of its library and dedicated web spin-offs of shows like The Office still being made. And a recent study from the Diffusion Group projected that professional online video will account for 96 percent of video ad revenue.

But a report from Lehman Brothers earlier this month cast doubt on the possibility that media companies will be able to maintain their revenue through digital distribution. As Liz pointed out, our own tracking of industry stats has pegged U.S. broadcast TV advertising at $46.6 billion in 2007, while online video advertising was worth just $471 million.