DVD a key in SAG negotiations

Actors could strike if terms not met by June 30

By Susanne Ault -- Video Business, 6/5/2008

JUNE 5 | Another Hollywood work stoppage is a real possibility, just months after the writers went back to work, and this time, DVD is in the thick of things.

The Screen Actors Guild is currently negotiating with the Alliance of Motion Picture and Television Producers on a new contract defining actors’ payments and benefits for the next few years. If SAG and AMPTP can’t come to terms before June 30, there is the chance that actors will boycott film and TV sets, as the Writers Guild of America members did from November until February.

SAG and AMPTP are reportedly far apart on certain issues, including the payment of DVD residuals. SAG has been arguing for a significant hike in residuals, or revenue actors receive from DVD work. But the AMPTP has granted zero DVD residual hikes in negotiations with the Directors Guild, the American Federation of TV and Radio Artists and the WGA.

SAG has tried compromising on its DVD demands. Earlier in the year, the guild was seeking to double its residuals. But since May, SAG leadership has been asking for the equivalent of a 15% increase.

A producer source indicated the AMPTP is sticking to their guns on little, if any, DVD increases to actors. “We have made no secret that this is not the time to be decreasing the amount of revenue that comes in [from DVD],” the source said. “That money is critical for greenlighting projects, as it makes up the big production deficits.”

SAG and AMPTP spokespeople declined comment.

While DVD retailers are concerned about any potential strike, some are less alarmed with the experience of the WGA strike behind them.

“DVD sales were consistent during the [WGA] strike and most probably gave some people an alternative resource throughout the TV reruns,” said Virgin Megastores buyer Chris Anstey. “But there’s no question that we’d much prefer a strong slate of good DVD releases coming from a healthy, working industry.”

Todd Zaganiacz, president of the National Entertainment Buying Group, said “that any strike in Hollywood has the potential to hurt us … But we saw some customers coming in to rent things because there was nothing new on TV, or they wanted to catch up on shows that they may have missed.”

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