by , 9:00 PM EDT, October 14th, 2005
Five Hollywood unions are looking for a piece of the iTunes video pie in the wake of Apple announcing that five television shows would be available for download through the iTunes Music Store. In an unprecedented show of unity, the Screen Actors Guild, the Directors Guild of America, the Writers Guild of America, East, the Writers Guild of America, West, and the American Federation of Television and Radio Artists all banded together to issue a joint press release that effectively asks for compensation for TV shows downloaded from iTunes.
"As the representatives for the creative community we embrace new technologies that expand distribution of material featuring the work of our members," read the statement. "The announcement [October 12th] unveiling the Apple iPod represents the latest chapter in the ongoing technological evolution of our industry. We have not yet heard from the responsible employers of our members, but we look forward to a dialogue that ensures that our members are properly compensated for this exploitation of their work."
The five shows added to the iTMS are all owned by ABC and ABC's parent company, Walt Disney Co. They are ABC's Lost, Desperate Housewives, and Nightstalker, and the Disney Channel's That's So Raven, and The Suite Life.
According to an AP report, news of the new feature at iTunes came as a surprise to all of the heads of the respective unions. The AP also reported that the unions have not yet contacted ABC or Walt Disney Co., but ABC did release a statement in response to the unions' press release.
"The guilds are our business partners, and we always welcome a dialogue with them on any business-related issue that affects their members," said the company.
The fight over royalties is a time-honored one in Hollywood, with actors, directors, and writers often at odds with the studios, especially when it comes to new technologies. For instance, it took some time for an agreement to be worked out over royalties for DVD sales for both movies and TV shows.
While on the surface, this may sound like the record labels saying they want a piece of iPod sales because their music helps to sell iPods to begin with, the unions have a much more reasonable leg to stand on. Historical, negotiated, and legal precedence alike all say that writers, directors, and actors have a stake in revenue derived from their works.
What remains to be seen, however, is if the very small price Apple is so far charging per episode, US$1.99 per episode with the inaugural five episodes at iTunes, will be enough to satisfy all parties concerned. Between bandwidth, iTunes infrastructure, credit card fees, the studio's cut, and the royalties paid to the unions' members, there isn't a lot to go around at that price.