SAG backs off on DVDs

Relaxes some demands as talks continue with AMPTP

By Leslie Simmons
SAG and the Alliance of Motion Picture & Television Producers will return once again to the bargaining table Monday for what will likely be two days of intense negotiations on the actors' contract, which expires June 30.

Although SAG has scaled back some of its demands, including its initial proposal to increase DVD/home video residuals, both sides still remain apart on several issues, including new media.

Friday was to have brought about a temporary halt to the talks, which began April 15, between the union and the producers, with SAG's sister union AFTRA waiting in the wings to start its formal talks on the primetime/TV contract Monday.

But Friday, SAG and the AMPTP announced that they had agreed to continue their formal talks through Tuesday. AFTRA has agreed to start up its talks on Wednesday.

While some have tied the extension to SAG's decision to scale back demands on DVD residuals, sources say that was not the core reason to continue talks and that both sides just wanted to "keep the talks alive."

Still, the extension offers a glimmer of hope for the negotiations, which seemed to have taken a turn for the worse on Wednesday when the AMPTP sent its members a six-page missive indicating there was little both sides have agreed upon.

The studios have so far held the line with other unions in terms of not changing the 22-year-old DVD/home video model. SAG's national executive director and chief negotiator Doug Allen and president Alan Rosenberg have been outspoken about their desire to make gains on the DVD formula. Both have been adamant that they won't follow in the steps of the WGA, which took the issue off the bargaining table in order to move forward in the talks.

The AMPTP has rejected SAG's demand to double the DVD residuals, which it estimated would cost producers $500 million. The producers also took issue with proposed wage hikes they claim could increase as much as 200%.

SAG is now seeking a 15% increase in DVD pay, an indication that Allen and Rosenberg are not giving up just yet. Given the studios past position on increasing the model, however, it's unlikely the AMPTP will budge now, one source close to the negotiations said.

SAG also scaled back its demands for increases in extra and guest star pay.

"That's still on the table," one source said. "There's still not a whole lot that's off the table."

SAG and the AMPTP also are hashing out dozens of changes by the actors union to the new-media formulas already approved by the WGA and AFTRA's Network Code.

SAG backs off on DVDs

Relaxes some demands as talks continue with AMPTP

By Leslie Simmons
SAG and the Alliance of Motion Picture & Television Producers will return once again to the bargaining table Monday for what will likely be two days of intense negotiations on the actors' contract, which expires June 30.

Although SAG has scaled back some of its demands, including its initial proposal to increase DVD/home video residuals, both sides still remain apart on several issues, including new media.

Friday was to have brought about a temporary halt to the talks, which began April 15, between the union and the producers, with SAG's sister union AFTRA waiting in the wings to start its formal talks on the primetime/TV contract Monday.

But Friday, SAG and the AMPTP announced that they had agreed to continue their formal talks through Tuesday. AFTRA has agreed to start up its talks on Wednesday.

While some have tied the extension to SAG's decision to scale back demands on DVD residuals, sources say that was not the core reason to continue talks and that both sides just wanted to "keep the talks alive."

Still, the extension offers a glimmer of hope for the negotiations, which seemed to have taken a turn for the worse on Wednesday when the AMPTP sent its members a six-page missive indicating there was little both sides have agreed upon.

The studios have so far held the line with other unions in terms of not changing the 22-year-old DVD/home video model. SAG's national executive director and chief negotiator Doug Allen and president Alan Rosenberg have been outspoken about their desire to make gains on the DVD formula. Both have been adamant that they won't follow in the steps of the WGA, which took the issue off the bargaining table in order to move forward in the talks.

The AMPTP has rejected SAG's demand to double the DVD residuals, which it estimated would cost producers $500 million. The producers also took issue with proposed wage hikes they claim could increase as much as 200%.

SAG is now seeking a 15% increase in DVD pay, an indication that Allen and Rosenberg are not giving up just yet. Given the studios past position on increasing the model, however, it's unlikely the AMPTP will budge now, one source close to the negotiations said.

SAG also scaled back its demands for increases in extra and guest star pay.

"That's still on the table," one source said. "There's still not a whole lot that's off the table."

SAG and the AMPTP also are hashing out dozens of changes by the actors union to the new-media formulas already approved by the WGA and AFTRA's Network Code.

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DENVER -- New figures from NPD Group suggest that the Amazon DRM-free digital music service is doing more to grow the overall digital music market as opposed to simply stealing customers from iTunes.

The research group says only 10% of Amazon customers had previously bought music from Apple's iTunes service. While many tagged the Amazon service as an "iTunes killer" when it first launched, the music industry's hope all along was never to cannibalize iTunes sales but rather encourage new digital buyers. NPD's data suggest exactly that is happening.

"The fact that Amazon's early growth does not appear to be at the expense of Apple iTunes is a healthy indication that the digital music customer pool can expand into new consumer groups who have not yet joined the iTunes community," said NPD analyst Russ Crupnick in a statement.

NPD says Amazon is now second only to iTunes in the a la carte digital download category (for those keeping score). The company did not disclose how many users Amazon has attracted in total, however it did say iTunes volume is 10 times that of Amazon.

Some interesting demographic breakdown has emerged between the two services as well. NPD says 84% of Amazon customers are male, compared to 44% of iTunes, but only 3% of Amazon customers were teens, compared to iTunes' 18% (the latter attributed primarily to the popularity of iTunes gift cards.)

NPD says Amazon's growth is likely more due to existing Amazon customers adopting the new service rather than due its lower pricing or DRM-free policies.

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