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Ad Industry Meets with Actors' Unions

Representatives from the advertising community met this weekend with executives from the largest actors' unions to sort out compensation for acting in ads delivered digitally to computers, cell phones, PDAs, DVRs and MP3 players. The ad industry's Joint Policy Committee on Broadcast Talent Union Relations met reps from the Screen Actors Guild and the American Federation of Television and Radio Artists to negotiate a new payment structure that considers all media. Used to be that actors were paid a percentage of the media costs, but as audiences are fragmenting and TV ads are being repurposed online, things are getting a little trickier. Part of the problem is that cost no longer bears relationship to the audience size. It costs more to reach a whole family these days because individuals are consuming media in their own way and on their own devices; families no longer sit at home and watch TV together. Advertisers are spending less money on TV and audiences are shrinking, while the cost for acting talent is going up.

Read the whole story at Red Herring »

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