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Writer's Guild Pushes Bargaining Chips over Digital Residuals


The modern Wonder

The Writer's Guild of America and Hollywood studio executives begin contract renewal talks this week in what one negotiator calls "the most complex" labor discussion in 25 years, reports Reuters. The topic? How the Internet has altered show biz.

The talks revolve around residuals, bonus payments for writers when their work enters secondary markets, like cable TV reruns, distribution overseas, and DVDs.

This year, writers will push to get residuals when their content is beamed to digital platforms like the internet, mobile phones and iPods.

On the other side, producers want the old style of carving out residuals from a production's gross revenue to factor in development, production, distribution and marketing costs.

Producers have suggested the two sides study those issues and return to the contract talks in three years. But the Writers Guild condemned the suggestion as a stalling tactic.

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