Why There are Now Wage Minimums

If you work in the movie business, you might have brushed up against "New Media," which has been in SAG-AFTRA contracts, WGA contracts, IATSE contracts, and the collective bargaining agreements of the Directors GUild of America (thie first organization to get recognition for New Media, since 2008.

Problem is, until the current cycle of contract talks, the producers' song and dance was: "Weelll. We're not sure how this New Media thing is going to pan out, really we don't. So we need flexibility. Lots and lots of flexibility."

Which meant, in contract-language speak, no wage minimums in the collective bargaining agreement. The ultimate flexibility.

Happily, it now looks like companies' know how New Media will pan out:

... 2015 is when core Internet spending will surpass broadcast TV — including its offshoot online services — according to a forecast out today from FTI Consulting.

The firm projects that Internet spending will rise 11.4% to $41.8 billion while broadcast lifts just 0.9% to $38.9 billion. Cable, also including online, is expected to be up 6.2% to $33.4 billion. Advertisers still spend more on direct mail — $44.2 billion — than they do on Internet. But that will change in 2016.

In 2018, FTI expects advertisers to lay out $55.6 billion for online, $45.5 billion for broadcast, $40.0 billion for cable, and $44.2 billion for direct mail. ...

So three years hence, online advertising bucks will surpass all other commercial spending.

The jury is no longer out. It's returned and rendered its verdict. Which explains why labor contracts in Movieland now have wage minimums. No reason not to. More bucks flow from the interweb than broadcast TV.