BREAKING — UPDATE: DGA Announces Tentative Deal with Studios
UPDATE: BREAKING: DGA has announced a tentative deal with the Studios. Details below.
Read what the DGA says HERE
In a statement, the Directors Guild of America said Thursday that they had reached a preliminary agreement with the Alliance of Motion Picture and Television Producers over a new three-year contract, to take effect when the directors’ existing deal expires on June 30. The union, which represents about 13,500 directors and associated production workers, must still submit the deal to its board and members for approval.
The accord achieves a breakthrough for union members by doubling compensation for television shows that are downloaded via the Internet, and raising by 80 percent the rate for movie downloads. In addition, directors — for the first time — will be compensated for advertising-supported streaming of shows.
Over all, the agreement was designed to reflect the directors’ belief, bolstered by an independent study of industry economics, that digital media will render the companies a negligible amount of revenue during the life of the contract, and will become significant only after 2010.
Key provisions of the contract assure that its formulas governing new media will not become a precedent in the next negotiation, when the economic prospects from new delivery forms are expected to be much clearer. The deal, in effect, postpones a fight that writers are waging now.
Posted 1418PT 01/17/08