Hollywood Wants In on Video iPod Racket
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Posted by George on October 15th, 2005

It didn’t take long before the vultures stake their claim on the new iPod video download revenue. The only time you will ever see unions working together is when they are all after the same thing, in this case, the pot of gold at the end of the iPod video downloads. Don’t worry people, I doubt they will raise the download above $1.99 anytime soon.

In a show of unity, five unions representing actors, writers and directors issued a joint call for talks to make sure their members get a cut of revenue generated by the sale of TV shows on Apple’s iTunes software.

Under the WGA contract, writers are entitled to 1.6 percent of the license fee paid by networks to the producers of a show. The ABC hits “Lost” and “Desperate Housewives,” are produced by Touchstone Studios, Disney’s TV production arm.

Actors are entitled to 3.6 percent of the license fee.

A conflict could arise if studios decide to treat the Internet downloads the same as a DVD sale, which might result in lower payments.


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