Written by Chris Albrecht
Posted Wednesday, December 3, 2008 at 8:05 AM PT

 

Hollywood Clashes Over New Media Money

Hollywood is in a bit of a mess right now as the major studios are clashing with not one, but two labor guilds over new media payments. Talks between the Screen Actors Guild (SAG) and the studios broke down last month over Internet shows, and the Writers Guild of America (WGA) says the studios have yet to pay the online residual owed to the writers.

SAG is making moves to authorize a strike from its 120,000 members — but given the economic climate we’re currently in, there’s deep division amongst the membership over whether that’s a good idea. Perhaps smelling blood, the studios roiled the water over the weekend, posting an open letter in the LA Times saying that should the actors strike, they would lose more money than they’d ever get back.

Speaking of the LA Times, it has a great piece today on why new media is such a big deal for both the actors and the studios. The actors see a big upside in web programming and a chance to get in on the ground floor. The studios say the money isn’t there yet. And neither side is really wrong.

Even if a strike is averted, according to the WGA, there’s no guarantee they’ll get what’s owed. The writers guild, which went on a 100-day strike last year, alleges that the studios aren’t honoring the new media payment portion of its contract. In response, the studios said that some studios had made payments — but others are still implementing new accounting systems to make those payments.

Sphere
Topic: Hitlines, Legal
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Comments & Trackbacks

  1. [...] Some SAG leaders want online actors to work under a union contract. Studios say they can’t afford to pay what the union wants, because online shows aren’t making much money. Most third party estimates put total online video revenue from such shows in the tens of millions, not billions. [...]

    Hollywood applies industrial labor model to new media revenue, fights itself » VentureBeat on December 3rd, 2008 at 12:07 pm - Permalink

  2. [...] Hollywood Clashes Over New Media Money. It’s just like Hollywood to use a strong word like “clashes” over something that is more [...]

    The Week in Review: Money Issues #17 - MoneyRemix on December 4th, 2008 at 8:21 am - Permalink

  3. I’m the lead in a “New Media” show and felt I should comment on this ad.
    Truth is, as I found out 1st hand, the money IS THERE. I’m shocked at what producers are doing just because they can. In other words, and to put it bluntly, since there are no rules they take about 95% of the money (NO LIE) and stick it in their pockets. Then the poor people doing all the work have to beg their friends for favors to get the projects done. There’s some VERY unethical and shady stuff going on here. They are forcing us to strike. I keep reading speculation from people on the outside, but I swear on all that is holy I’m telling you exactly what’s happening. I don’t know how these people sleep at night but someone has to keep them in check.
    How would you like to work twelve hour days, watch someone buying houses and cars from your work, then they tell you there’s no money left to pay you? That’s EXACTLY what they do.

    Lagolas on December 11th, 2008 at 5:11 pm - Permalink

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