Writers Guild Strike

This is what I found on it… apparently the want a larger cut on DVD’s and the same cut on online media (which it appears that they’re currently getting nothing for)

The key financial issue in the talks involves changing the formula for paying writers a share of DVD revenue, then applying the same equation to money made from material offered over the Internet and other digital platforms.

Studios, represented by the Alliance of Motion Picture and Television Producers, are dead set against increasing DVD royalties.

Writers and actors have been fighting for years to reverse what they see as a huge mistake made at the dawn of home video, when no one was sure if selling movies on VHS cassettes would ever make money.

The unions agreed to ignore the first 80 percent of revenue from the tapes and later DVDs, assuming most of the money represented the cost of manufacturing and distribution.

Writers settled for just 1.2 percent of the remaining 20 percent, a figure that amounts to about 3 cents on a DVD that retails for $20.

Writers are now asking for their share to be calculated on 40 percent of revenue and argue the same formula should be used for digital distribution because studios have almost no costs associated with that technology.

Consumers are expected to spend $16.4 billion on DVDs this year, according to Adams Media Research.

By contrast, studios could generate about $158 million from selling movies online and about $194 million from selling TV shows over the Web.

http://www.foxnews.com/story/0,2933,307491,00.html