A residual formula based on global streaming growth and data transparency are key priorities for the 19,000-strong union, which begins talks with the entertainment giants on Wednesday.
Ever since, the union has been preparing its members for a fight, with union leaders most recently sending a video message on Tuesday that acknowledged, “We know there will be conflict. The battle will test us.” The stakes are “pretty dire,” says one of several DGA members who spoke within advance of negotiations, citing peers who have left the Los Angeles area due to attributes of this current iteration of the streaming era, including shorter TV seasons and lower residuals.
While the DGA has been characteristically quiet about the specifics of its proposals before talks begin, a major issue on the table is instituting a streaming residual formula that accounts for the global growth of platforms. Currently, as the guild explained to its members in an April communication, the union’s SVOD residual is “based largely on the number of subscribers in the United States and Canada,” with services with more of these subscribers offering higher residuals to members.
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