As the Writers Guild of America (WGA) is poised to strike television and movie producers this Monday, The Wall Street Journal reports how compensation for video on the Internet and cellular phones figures prominently in the discussions.
This is not a cut-and-dried issue.
Writers receive at least $21,000 for a half-hour on-air script and at least $31,000 for a one-hour script. Writers also may receive tens of thousands of dollars more if they are granted “producers credits” as well as receiving additional compensation for syndication and overseas rights, the article says.
For DVD sales writers receive .3 percent on gross revenues on the first $1 million and .36 percent after $1 million.
Internet, cellular compensation models
Writers don’t receive compensation for free programs viewed on the Internet, even if revenues are generated by advertising. If viewers pay for the content, writers receive the same compensation as for DVD sales, the WSJ reports.
For Web-based episodes, writers are paid on a case-by-case basis, the article says.
The WGA wants writers to receive 2.5 percent of the distributors’ gross revenues for Internet and cellular phone programs. The article says, however, “Negotiating a deal would be much easier if distributors could estimate what percentage of their online or mobile-phone viewers would be new to the show, and what percentage would be regular viewers simply changing their viewing habits.”
Revenue uncertainty
However, no one is sure of what viewers’ habits will be in the future. For example, TV shows that also are posted on the Internet are currently used more for marketing than generating revenues, the article says.
Cellular-based videos also figure into the marketing strategy as writers are increasingly asked to develop short clips and promotional content for phones as well as for the Internet. “Those emerging platforms are proving among the most contentious, with the union trying to wrestle Webisodes under their control,” the WSJ says.
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