On July 28, 2009, DGA National Executive Director Jay D. Roth addressed the IATSE Quadrennial Convention in Orlando, Florida. At the convention, IATSE International President Matt Loeb was re-elected without opposition.
Roth spoke of the strong relationship between the DGA and IATSE, stating that "for the past 15 years, our two unions have worked closely together, sharing information, and discussing and planning industry bargaining strategy and legislation, in the name of friendship and union solidarity." He further noted that "the leadership of both the IATSE and the DGA recognize that in a world and an industry changing as rapidly as ours, our unity gives us a better opportunity to grow stronger regardless of whatever challenges we face."
Reflecting upon the state of the entertainment industry, Roth noted some of the many factors both known and unknown that make predicting the future so challenging:
DVD Market:
- The motion picture and television business is dependent on downstream revenue. Approximately 75% of motion picture revenue comes from markets after theatrical, as does more than 50% of television revenue.
- The current business model and the DGA and IA members' employment and pension and health plans are dependent on this downstream revenue.
- Domestic home video consumer spending is at least 22 times domestic digital sales of downloads and rentals ($21.7 billion to less than $1 billion).
- Home video revenue is down, even with the addition of Blu-ray.
- Whether the decline in home video is cyclical and related to the economic crisis; or secular, representing a true change in consumer habits.
Traditional Media/New Media:
- The average US viewer watches 150 hours of TV per month, and the average online viewer watches 6 hours of video per month.
- One hour of American Idol on broadcast TV generates more than twice as many ad impressions and revenue as an entire month of all of Hulu's 10,000 programs.
- Whether the successful new media model will wind up being paid downloads, subscription services, ad-supported streaming or some other model yet to be developed.
- Whether new media will grow significantly enough to be a factor in our revenue streams in the next two negotiations cycles.
Additional questions adding to the unknowns include when the economy will recover and how the industry's business models will react to all of the unknowns. "So, there's plenty we know, and plenty that only time will tell," Roth observed.
Turning to the subject of Internet theft, Roth examined the effect of digital piracy on members. "What digital piracy does is destroy the very after-markets that make it possible for our members to continue working and our unions to fund the pension and health funds upon which our members rely," he said. "We must work together with all those who have a stake in this battle. That means working with each other; with the studios and independent producers; with our colleagues abroad; and with all those who care about what we create," he added. "This is not a battle that can be won without the leadership of labor."
