It's the money, stupid!

Reuters: Unions seek video iPod residuals. "WGAW continues to believe that the proper formula is the existing one covering pay television. That entitles writers to 1.2% of the entire producers' gross. DGA has an identical formula, while SAG gets 3.6% and the International Alliance of Theatrical Stage Employees (IATSE) gets 5.4%.

The DVD formula, by contrast, is much less lucrative for all of these guilds because it pays a slightly higher percentage based on only 20% of the wholesale receipts. The remaining 80% is withheld by the studios to cover manufacturing, distribution and marketing costs.

The unions feel the DVD model is outdated and fundamentally unfair, leading them to demand a greater share in last year's negotiations with the studios and networks. The effort was unsuccessful when the Alliance of Motion Picture and Television Producers made it clear that it was willing to endure a strike to protect DVD revenue, which has become fundamental to the economics of film and TV production." So it begins. Since the Hollywood has been fretting about declining sales of DVDs that pillar the financial health of the studios, it is likely that the unions will get the DVD model. Plus, it makes the whole schem/math much easier.