New Media Terms to End WGA Strike

Courtesy of Ian Schafer, via PaidContent (or is it the other way around?), here are the tentative terms to be voted on by the WGA that would put an end to the strike, and bring new TV programming (and web!) back to our screens.

Highlights include:

— Download Rentals: 1.2% of distributor’s gross receipts.
— Download Sales (Electronic Sell-Through): 0.36% of distributor’s gross receipts for the first 100,000 downloads of a television program and the first 50,000 downloads of a feature. After that, residuals are paid at 0.7% of distributor’s gross receipts for television programs and 0.65% for feature films.
— Television Ad-Supported Streaming (New Programs): Ad-supported streaming of television programs is payable at 2% of distributor’s gross receipts one year from the end of an initial streaming window.
— Residual Payment (Network Prime Time): In the first and second years of this contract, after the initial window, for network prime time television programs, a fixed residual of 3% of the residual base. In the third year of this contract, the 2% of distributor’s gross formula is applied immediately after the initial streaming window.
— Residual Payment (All Other Programs): 3% of the residual base is paid for each of up to two 26-week periods in the first two years of this contract. In the third year of this contract, the payment rate rises to 3.5% of the residual base.

Score one again for us (er, just me – Ben disagreed - and Shelly Palmer, too) for suggesting a reasonable contract term that could be revisited as the dynamics of the online video industry mature. Three year deal seems pretty damn reasonable, and they can begin to renegotiate in plenty of time if a true and massive paradigm shift does occur in less time than that.

Off to party for the b-day……