In two prior contract negotiations, the producers’ negotiating team, the AMPTP (alliance of motion picture and television producers), absolutely refused to consider changes in the writers and directors Guild’s residual formulas for dvd’s. They faced possible union strikes there too and refused to budge. Those unions have seen the AMPTP’s resolve and backed away. The question is: why might the AMPTP be so resolved?? This important question is rarely asked when discussed by performers. Or if it is, the ringing simplistic indictment is because of their “Greed.”
Such an easy answer; so little to do with understanding our opposition.
Some people will tell you that dvd’s generate $22 billion dollars. But about a third of that money goes to the retailers (Blockbuster, Walmart, Target, etc.- who pay us nothing) leaving about $14 billion. Still a heck of a lot.
Now eliminate $4 billion dollars of sales on porn and $1.5 billion on sports shows that on which the Guilds don’t collect residuals. The pie is now $8.5 billion.
Subtract out another billion, because those are sales of product made before 1960. Residuals weren’t invented before then. The pot is now worth $7.5 billion.
Now eliminate producer production costs and other items to arrive at the actual profit, which the producers are required to base the monies owed to us; the total pie is $1.5 billion. Still a large number.
But, of course, it would be since $1.5 billion represents profits on all the dvd’s presently on sale and covering decades worth of films and tv shows. The reality will be that the actors will only see a gain in dvd residuals on product either made or distributed after July 1st 2005. That will still be a lot of money, but not as much as is being touted.
Moreover because of the way the residual pie is shared, the lion’s share of the extra money made would go into the pockets of the leads. Even so it is a transgression that actors share in so little of this burgeoning market and that is why this decision is so hard and so acrimonious.
“The producers are greedy. We’re only asking to increase our meager 0.9% share to a 12 cent increase. ” Well, every union negotiator knows that the AMPTP has a hard and fast mantra - "pattern bargaining." Which means for every "give" (like higher residuals on dvds or contributions to pension & insurance) the pattern of “giving” must be respected for the other unions. The pattern is as follows: one share to the writers, one equal share to the directors, and three equal shares to the actors (1-1-3). So when the actors ask for 24 cents (a 12cent increase on the 12 cents we already get), the producers think 40 cents (8cents to writers, 8cents to directors, 24cents to actors = 40cents). The pattern is a force of nature and each union uses it when they can to their own advantage.
You begin to see the AMPTP’s reluctance to budge on dvd residuals. Especially, when the tri-Guild (SAG, AFTRA, DGA) residual study educated us on how much producers lose on all but the most successful TV shows. Hard to believe, but it is a substantiated fact.
we as actors really need to start thinking about things thoroughly before we consider striking. not to say many don't, and not to say strikes have not been justified--but just like the presidential voting in our country, many people form opinions without or before knowing all the facts from every side. i think we all have a tendency to jump to one set of opinions and stick to them pretty fiercely, often basing them on incomplete information. it's all well and good to defend your rights, stand up for your principles, etc. i just feel a need to start focusing more on whether they are the appropriate points in a looming situation.
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