If Hollywood’s labor drama were a script, this would be the start of Act Two. On Wednesday, as writers walk picket lines outside the major studios, the Directors Guild of America will sit dow…
secured milestone agreements for unfettered jurisdiction over the internet and a residual formula for what was then quaintly known as “new media” exploitation of movies and TV shows.then had the same terms baked into its 2008 contract through “pattern bargaining,” which ensures a level of parity among the WGA, DGA and SAG-AFTRA.accord is by no means a sure thing.
A DGA deal could then be applied to SAG-AFTRA, which begins its negotiations on June 7, potentially increasing the AMPTP’s leverage with writers. The DGA also broke with tradition and declined to negotiate early with the AMPTP, saying in February that the studios weren’t yet willing to address key issues. That was a surprising development from the guild that has had the reputation for being coolly analytical and business-like when it comes to contract talks, in contrast to the WGA’s more pugnacious approach, at times.
In this round of bargaining, there is some overlap between the WGA and DGA agendas. In addition to an improved streaming residual formula, the DGA also wants hefty hikes in minimum rates to account for rampant inflation since the last round of bargaining. The rise in global streaming has become the centerpiece, however. In a message to members last month, the DGA laid out data showing that with the domestic streaming business reaching a plateau, the studios are looking to foreign subscribers for growth.
“The bigger the SVOD platform domestically, the higher the residual,” the guild stated. “However, under our current formula, no matter how many millions of global subscribers a service might have, the Studios only pay you a fraction of the domestic residual to compensate you for all of the global audiences that
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