WGA and DGA Blast ABC Move to Pay Download Residuals at Lower Rate

Leaders of the WGA and DGA are attacking the decision by ABC to cover downloads at the lower homevideo residuals rate rather than at the pay TV rate, which is four times higher.

“ABC’s unilateral decision to pay digital download residuals at the homevideo rate is a violation of our contract and insult to our hard-working members,” said Writers Guild of America West president Patric M. Verrone Feb. 27. “It is unacceptable, and we will aggressively pursue all legal options at our disposal.”

At issue is how the gowing number of new digital delivery systems and how the profits will be shared with the industry workforce.

SAG President Alan Rosenberg has alleged that ABC violated the collective bargaining agreements by selling “Lost” and “Desperate Housewives” for digital download to iPods without first bargaining with SAG.

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